Aid Takes a Different Turn in Grad School

Students looking into financial aid for graduate studies will encounter a quite different process than the one they know from college.

• College aid forms routinely ask students to provide financial information from their parents or guardian. That's not the case with graduate school aid. Lenders, especially, care less about parents' resources and more about student's future income.
  
  
• Grad students qualify for a much higher limit on low-interest Stafford loans than college students do. First-year undergrads can only borrow up to $2,625, whereas grads can borrow up to $18,500. (Remember that the amount of school loans you take out should be based on how much debt you can comfortably pay off, rather than on how much money is being offered to you.)
  
  
• Graduate school funding varies considerably from school to school and from program to program. A recent Chicago Tribune article noted that University of Minnesota grad students in biology and technology almost always get teaching assistantships that cover their tuition costs. UM students in the humanities, however, have few such opportunities and tend to finance their education through loans.

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Financial aid research should be a fundamental part of your graduate school planning. Learn what grants, fellowships, and subsidized loans are available for study in the field you've chosen, and at the schools you've targeted. Compare the aid packages offered by different schools. Make sure that you apply early enough to qualify for consideration for teaching assistantships and other awards – AND that you submit well-prepared applications that heighten your chances of winning funding. Remember that every dollar you gain in grants is a dollar less that you'll have to earn or borrow. That means more time to focus on your studies while you're in school, and more financial freedom after you graduate.