How to Pay for Grad School Without Going Broke: Smart Strategies That Work

I still remember the moment I received my acceptance letters from Harvard Kennedy School and Harvard Business School. I was overjoyed—until the reality of graduate school costs hit me like a truck.

It wasn’t just the cost of tuition. It was also rent in one of the most expensive cities in the U.S., health insurance, textbooks, and the opportunity cost of being a full-time graduate student for two to three years.

When I started The Art of Applying back in 2010 with a $10,000 grant from HBS during my final year of graduate studies, I didn’t set out to become a business owner. I simply wanted to help other ambitious people navigate the complicated process of getting into competitive graduate degree programs and paying for them without drowning in student loan debt.

Fifteen years and over $30 million in scholarships and grants later, we’ve helped thousands of students successfully fund their graduate education through our Application Accelerator™ program.

If you’re wondering how to start paying for grad school without selling your soul or taking on more debt than your future salary can support, this post is for you.

Let’s walk through how to think strategically about how to pay for your education, so you can make empowered financial decisions that support your goals instead of sabotaging them.

Start with a Mindset Shift: Grad School Is an Investment, Not a Purchase

Treating graduate education like an investment shifts your entire decision-making framework.

Ask yourself:

What return do I expect from this graduate degree?Will this program expand my income, career options, or personal growth?How much debt can I responsibly take on based on expected post-grad earnings?

When you treat grad school like an investment, you’re more likely to pursue grants and scholarships, fellowships, and types of financial aid that align with your goals—and avoid taking on unnecessary graduate student loans.

Start with Money: Fill Out the FAFSA for Access to Aid

Start by completing the Free Application for Federal Student Aid (FAFSA), even if you think you won’t qualify for need-based aid. Some grad schools, such as HKS, require the FAFSA to consider you for financial aid for graduate school, work-study, and even grants to help pay tuition.

FAFSA gives you access to:

Federal and private loans including direct unsubsidized loans and Grad PLUS LoansScholarships and assistantships that require demonstrated needYour school’s financial aid office to guide you on funding options

The FAFSA is essential for both undergraduate and graduate students seeking aid.

Prioritize Scholarships: Money You Don’t Have to Pay Back

Scholarships are one of the best ways to cover your graduate education because they are money you don’t have to pay back.

1. School Scholarships:

Many grad schools offer school scholarships to graduate students based on merit. Your school may also have scholarships available for graduate students in specific fields or underrepresented backgrounds.

2. External Scholarships:

Thousands of organizations offer scholarships for their graduate students based on profession, background, or field of study. These include:

The Paul & Daisy Soros Fellowships for New AmericansNational Science Foundation Graduate Research FellowshipGraduate school scholarships from professional associations3. Niche Scholarships:

Look for graduate scholarships from community foundations, cultural organizations, or niche funds with money set aside for specific identities or interests.

Search weekly. Even small awards can help cover your graduate school expenses.

Look for Fellowships: A Top-Tier Way to Pay

Fellowships help pay for grad school by offering more than just funding. Many cover full or partial school tuition, provide a stipend to help pay living expenses, and include built-in mentorship or jobs after graduation.

Top fellowships:

Presidential Management FellowshipFord Foundation FellowshipPickering Fellowship for aspiring diplomats

Fellowships are an ideal way to pay for graduate school without relying heavily on loans.

Use Assistantships: Earn Money While You Learn

Many graduate programs offer assistantships that provide a stipend and tuition assistance in exchange for part-time work.

Common roles:

Teaching or research assistantGraduate assistant in student servicesDepartmental support positions

Assistantships are often available for graduate students and may be included as part of your admissions offer or accessed by applying through your financial aid office.

These roles help students pay for graduate school expenses gaining valuable professional experience and substantial insights into the world of research.

Ask Your Employer About Tuition Reimbursement

If you’re working or plan to return to your job post-graduation, check if your company offers tuition reimbursement.

Employers often offer graduate education benefits, especially in healthcare, tech, or business. Policies vary, but they can cover your graduate program in part or full.

Things to check:

Program eligibilityRequired grades or outcomesCommitment to stay post-degree

This is especially useful for part-time or online graduate students who want to stay employed.

Take Out Loans Thoughtfully: Understand What You Owe

Sometimes loans are necessary. If you need them, be strategic.

Federal Loans for Graduate Students:Unsubsidized Loan: Fixed interest rate, no need requirementGrad PLUS Loans: Higher limits, loans may require credit check

Loans are available for graduate students, but choose wisely. Federal options typically offer:

Income-driven repaymentPublic Service Loan ForgivenessDeferment or forbearance flexibilityPrivate Loans:

Use private student loans or loans from private lenders as a last resort. These can have higher interest and fewer protections.

Compare all terms carefully. Private loans may have variable rates or no forgiveness options.

Work on Campus or Part-Time

If your schedule allows, work on campus or take a part-time job. Many schools encourage students to work in low-stress roles that fit around class schedules.

Ideas include:

Library or front desk jobsTutoringOn-campus events or admin support

Even modest earnings can help you find balance with school costs and reduce borrowing.

Consider Online or Part-Time Programs

You don’t have to go to graduate school full time. An online graduate program or a part-time format allows you to keep earning while learning.

This can make paying for grad school more manageable and provide flexibility if you have family or work commitments.

Layer Your Strategy: Combine Sources to Cover Costs

Rarely does one source cover everything. Most students use multiple strategies to pay for grad school.

Example mix:

Submit FAFSA for aidWin a graduate scholarshipLand a teaching or research assistantshipUse employer tuition reimbursementTake out a manageable amount in loans for grad school

This reduces the need for large graduate student loans and improves long-term financial outcomes.

Final Thoughts: Plan Ahead, Not in Panic

Too many students wait until they’re accepted before figuring out how to cover your graduate school costs. That can lead to poor decisions and long-term financial stress.

Be strategic. Get familiar with the types of financial aid for graduate school, explore all your options, and don’t just rely on taking out student loans.

At The Art of Applying, we guide people through both admissions and funding. If you’re serious about going to grad school and want support navigating both acceptance and affordability, consider booking a free Quick Call with our team.

Your graduate education should open doors, not bury you in debt. Let’s build a smart path to get there—together.