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Just as you researched the best graduate programs to
apply to, you should also investigate all of the financial-aid
possibilities that are available to you.
Funding
can be broken down into three broad categories: need-based,
merit-based and targeted aid. Upon acceptance to a particular
school or department, you may be offered a "package" which
could entail funding from each of these categories. The package
may consist of a combination of scholarships, loans, grants,
work-study, tuition reduction/remission, and fellowships (which
may or may not have a service-related component, such as being
a teaching or research assistant).
Though
most graduate students incur some debt, the level varies depending
on your field of study and program. For example, few Ph.D.
students bear the entire cost of their doctoral programs as
most receive a combination of fellowship and assistantship
funding. There is usually much less funding available for
students in professional and master's programs, so if this
is the direction you're headed, you should expect to graduate
not only with a degree but also with a healthy level of debt.
Following
is an outline of some of the financing options for graduate
study:
There
are a variety of federal aid programs that all students may
apply for, some of which are listed below. You can receive
more information by ordering the U.S. Department of Education
Student Guide by calling the Federal Student Aid Information
Center at 1-800-4-FED-AID (1-800-433-3243) or by checking
it out on line at http://www.ed.gov/prog_info/SFA/StudentGuide/1999-0/index.html
1.
Federal Perkins Loans: These are loans with low interest
rates made by colleges to students with exceptional financial
need. You can borrow up to $5,000 for each year of study.
The amount you are authorized to borrow depends on the time
you apply, your level of need, and the funding level of the
school. Repayment begins nine months after you graduate. More
information about these loans is available at www.ed.gov/prog_info/SFA/StudentGuide/1999-0/perkins.html.
2.
Federal Stafford Loans: These loans are lent to you directly
by the U.S. government. If your school does not participate
in the program, a bank, credit union, or other lender that
participates in the program handles your loan. Your loan money
must first be used to pay for tuition, fees, and room and
board. If loan money remains, you'll receive the funds by
check or in cash.
3.
Stafford Loans are either subsidized or unsubsidized.
A subsidized loan is awarded on the basis of financial need;
you will not be charged any interest before you begin repayment
or during authorized periods of deferment. An unsubsidized
loan is not awarded on the basis of need; you'll be charged
interest from the time the loan is disbursed until it is paid
in full. If you allow the interest to accumulate, it will
be capitalized (meaning that the interest will be added to
the principal amount of your loan, and additional interest
will be based upon the higher amount). You can receive both
a subsidized loan and an unsubsidized loan for the same enrollment
period. You must be registered at least part-time and meet
certain academic requirements, such as maintaining a GPA of
3.0 or higher at many universities, to be eligible.
The
maximum loan for graduate and professional students is $138,500,
and only $65,500 of this amount may be subsidized. This limit
includes any Stafford Loans received for undergraduate study.
You'll pay a fee of up to 4 percent of the loan, and this
fee is deducted proportionately from each disbursement of
your loan. You do not have to begin paying back these loans
until six months after you graduate. The interest rates for
Stafford Loans have been reduced, because the formula used
to determine the rate changed in October 1998. For more information,
visit the U.S. Department of Education Web site at www.ed.gov/prog_info/SFA/StudentGuide/1999-0/stafford.html.
4.
Federal Work-Study: The Federal Work-Study Program provides
part-time jobs for graduate students with financial need,
allowing them to earn money to help pay education expenses.
The program encourages community-service work and work related
to your field of study. Federal Work-Study wages are usually
$9–$15 an hour, depending on the type of work you do and the
skills required. Your total Federal Work-Study award depends
on the time you apply, your level of need, and the funding
level of your school. Most work-study positions are on campus,
though some off-campus positions are available with nonprofit
organizations. Your total hours are limited to the amount
of your work-study award as well as to a maximum of twenty
hours a week during the school year. For more information
about work-study, visit the Department of Education Web site
at www.ed.gov/prog_info/SFA/StudentGuide/1999-0/fws.html.
To
apply for all of the above aid options and to qualify for
most university and departmental aid, you'll need to complete
the FAFSA, the Free Application For Federal Student Aid,
each year that you plan to apply for aid. You may submit this
application free of charge. Deadlines vary institution to
institution, but it is best to get the form in as soon as
possible after January 1. Since you will need information
from your tax return to complete the application, it is wise
to file your taxes early.
It
usually takes about four weeks to have your application processed,
at which point you will receive a Student Aid Report that
summarizes the data that you reported on your application.
Be sure to keep a copy of the Report and note the number in
the upper right corner of the first page, which you will need
if you decide to apply to additional schools.
You
can file your FAFSA online or you may download the forms to
your computer and mail them in. For more information about
the application and options for filing, visit http://www.ed.gov/offices/OSFAP/Students/apply.html
Another
financing option is to look for funding within your university.
Following are some of the common forms of aid offered by individual
institutions:
1.
University Fellowships: Most universities award fellowships
on the basis of merit and department recommendation as well
as for the sake of adding diversity to an entering class.
These fellowships usually cover tuition and provide a stipend.
You will learn if you've been awarded a fellowship when you
receive your letter of admission.
2.
Scholarships: Many universities give scholarships from
endowed funds that have been donated by individuals who wish
to assist students in their academic endeavors. Many are general
merit awards, but in some cases the donor has specified certain
characteristics that a student must posses in order to receive
the award, such as being a native of Ohio or being a Peace
Corps volunteer. Check with your university to see if there
is an application for these sorts of scholarships.
3.
Assistantships: These are usually sponsored by the institution
to which you are applying and are most commonly available
for doctoral candidates in the science and engineering fields.
In some cases, graduate schools limit the number of acceptances
they offer to the number of candidates they can support through
assistantships. If you are awarded an assistantship, you can
generally incur minimal debt during your graduate program.
4.
Teaching Assistantships: These usually provide full or
partial tuition benefits as well as a competitive hourly wage.
Responsibilities include teaching undergraduate courses, grading
papers, compiling bibliographies, leading discussion sections,
and monitoring laboratories. Do keep in mind that these positions
can be time-consuming as you are often expected to maintain
office hours and grade exams during busy times of the year.
Still, if you are at all interested in teaching or are considering
pursuing a doctoral degree, this is a great way to gain experience
in the classroom. Often faculty have a say in choosing teaching
assistants, so it's a good idea to approach faculty with whom
you have an interest in working regarding these positions.
5.
Research Assistantships:
These types of positions are most widely available in the
sciences, although some humanities and social science departments
hire research assistants as well. Research assistants work
with faculty on their research projects and receive tuition
benefits and an hourly wage. Again, it's a good idea to contact
faculty with whom you have an interest in working.
We
also highly recommend that you search and apply for funding
beyond that which is offered to you by your graduate program
and the federal loan program. A few such options are listed
below:
1.
Loan Repayment Assistance Programs: There are a growing
number of tuition "forgiveness" programs for students who
are pursuing law, business, or teaching degrees and who plan
to work in the public sector. Check with your university to
see if these programs are available on your campus. For more
information about repayment options for law students pursuing
work in the public sector, visit the National Association
for Public Interest Law Web site at http://www.napil.org/. For students who are
interested in pursuing advanced business degrees, many companies
offer tuition reimbursement to continuing or new employees
with freshly minted M.B.A. degrees.
2.
Private Fellowships and Grants: There are many private
sources of funding support, but these require some time and
effort to research and apply to. Applications for such fellowships
and grants often require that you submit letters of recommendation
and copies of your academic transcripts, and many have October–December
deadlines for awards for the following year.
It's
a good idea to contact staff, students, and faculty in the
departments that interest you, and ask them about common sources
for private funding for students in your field. In addition,
most universities have an office that handles the listings
of more obscure fellowships that are available in your area
of study. Also be sure to check with professional associations
in the field of work that you are considering to see if there
are any scholarships available for people entering the field.
Finally, certain civic and alumni associations offer scholarship
support to graduate students.
As
you can see, it pays, literally, to do some research about
all of the available ways to finance your graduate education.
Investigate all of the options, talk to students and faculty
in your field, and mind those deadlines!
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