Creative strategies for funding graduate studies

These economic times have presented students with the particularly challenging task of funding their graduate education. With the national student loan debt reaching $1.2 trillion, it has become apparent that students must come up with innovative ways to fund their education. This mission will require a combination of traditional budgeting strategies, efficient resource utilization, and wise borrowing practices.

The first place to start is with your own finances. This entails a serious look at your spending practices and priorities. Attaining a
graduate degree is a privilege that many will never have the opportunity to complete. This being said, it is imperative to "live within your means" or avoid overspending. While this may seem like a simple concept, unemployment and underemployment make this
difficult for some. One creative idea is to apply your tax refund specifically towards tuition or books. This will decrease your student
loans and total debt upon graduation. Another option is getting a flexible part-time job. Many retail, food service, and private businesses recognize how valuable it is to employ developing professionals and will accommodate school schedules.

Your next stop should be your academic department as they may have scholarships, grants, tuition waivers, and graduate assistant,
research, or federal work-study positions available. These are excellent resources to employ, as these opportunities provide funds that do not have to be repaid and can build professional connections with faculty and staff. Another avenue is rotary clubs, like the Elks or Rotary International, as they have essay, service, and need-based scholarships. They usually require letters of recommendation or evidence of community involvement. Similarly, employee tuition assistance programs are often available to employees and sometimes their children as well. Eligibility for these programs is often contingent upon employment with the company for a specific period of time. If these terms are not fulfilled, the employee typically has to repay the company for the tuition.

Lastly, wise borrowing practices are absolutely essential to avoid crippling loan payments after graduation. Students often forget to look at loan rates and read the contracts they are signing. With fixed rates ranging from 5 percent to 6.41 percent for graduate students, federal loans are usually a better option than private loans. Private loans may appear to be a better deal, as they tend to have higher borrowing limits, but have fixed or variable rates anywhere from 3 percent to 13 percent. A good rule to follow when considering additional loans is to not borrow more in total than your first year salary in an entry-level position with your degree. This will help ensure more manageable payments once you graduate. Another component of wise borrowing is to not borrow beyond the cost of tuition and books. Many students rely on extra funds from student loans to cover their rent, bills, and groceries. While this may look convenient or necessary in the moment, it can result in some sobering consequences in the future.