Quick Highlights:
- According to US News, the average cost of tuition and fees for a master’s degree is $23,630 for out-of-state students at a public university. Private schools can cost even more.
- Think about all costs like tuition, books, living costs, health insurance, and travel.
- Look for scholarships and consider working part-time. Try tips like buying used textbooks or cooking at home.
- Set aside some money in an emergency fund and make sure you have the right insurance.
Table of contents
Making the decision to get a master’s degree is an exciting step. College graduates earn more money over their lifetime, so this decision could be the start of a lucrative future. Before you can start enjoying the financial benefits of getting a degree, you have to learn how to start budgeting for grad school. Student loans, tuition fees, and hidden costs can quickly add up, so it’s important to find ways to decrease these expenses.
To reduce the costs of your master’s degree, you should start by calculating all of the expenses connected to getting your degree. Then, you should go through the items on this list one at a time and determine ways to alleviate these hidden costs. At the same time, you should work on limiting your overall expenses before school starts so that you can build up a decent emergency fund.
Related:
Identifying Hidden Costs
While tuition is expensive, your schooling costs involve more than just paying for college credits. You will need to cover the cost of your:
- books
- supplies
- living expenses
- health insurance
- transportation
- medical fees
In addition, there may be hidden costs, like professional development fees, that you will need to incorporate into your budgeting for grad school.
Tuition-Related Fees
According to US News, in the United States, the average cost of tuition and fees is $23,630 for out-of-state students and $10,662 for in-state residents. At private schools, students pay an average of $42,162 per year.
Unfortunately, these aren’t your only tuition-related costs. Many schools also charge technology, registration, and library fees. While these fees are typically just a few hundred dollars each, they can quickly add up.
Books and Supplies
Next, you also need to look at the hidden cost of your books and materials. Textbooks cost an average of $105.37 each. Unfortunately, you won’t be able to buy just one. Even a single class can require multiple books. Because of this, the cost of textbooks can easily add up to more than $1,200 per year.
Fortunately, there are ways to decrease this cost. If you buy used textbooks instead of new ones, you can save significantly. Additionally, you may be able to borrow books from the library if you only need them for a short period of time.
Depending on the subject you are studying, you may need to pay for extra supplies, like specialized equipment and software programs. For example, computer science programs may require a specific type of computer. Meanwhile, film courses may require a special camera and microphone setup.
Living Expenses
Living expenses are often higher than you might expect during college. Many universities are located in cities and coastal areas, which have a higher cost of living. Before you move, research the cost of on-campus housing and off-campus apartments beforehand.
Transportation
If you don’t live on campus, you may have to pay for a car and gas to get to school. Meanwhile, on-campus students will need to pay for parking if they live on campus.
Health Insurance and Medical Fees
Unless you are able to remain on your parents’ insurance plan, you will have to pay for insurance through your work, a state health exchange, or your university. While this hidden cost can add up, you need to have health insurance in case an emergency happens. In addition, you need to plan ahead for health service fees, like copays, because these will have to be paid when you get medical care.
Professional Development
Depending on what you study, you may have to pay for other hidden fees, like professional development costs. To prepare for your post-graduation career, you may need to budget for conferences, networking events, and workshops. Many schools also have honor societies for specific majors. If you are a part of one of these groups, you may get to go to another city or state to discuss your academic papers and research.
Financial Planning Strategies
If you want to avoid having a significant amount of student loans, you can’t focus solely on your tuition fees. You will also need to add up all of the hidden fees connected to getting your master’s degree.
Budgeting
To get started with budgeting for grad school, you need to sit down and create a budget. Write down all of the tuition fees and hidden costs you can think of. Because many of these are recurring costs, you should add them up for the entire year. Then, you can divide this total into a monthly dollar amount you will need to set aside.
Scholarships and Grants
To obtain an affordable master’s degree, look for a college that offers a lot of institutional aid, like scholarships and grants. With a master’s degree, Pell Grants and other types of federal aid are generally unavailable. Because of this, you should look for scholarships, state grants, and other types of aid to make up the difference.
Part-Time Work
One of the most important ways you can help with budgeting for grad school is by getting an assistantship. With an assistantship, you can reduce or eliminate your tuition costs by working on campus. How much the assistantship pays depends on the school you are at. While some will give you a stipend and get rid of your tuition fees, other assistantships only decrease the cost of school.
Other than an assistantship, you may be able to work on campus or find an off-campus job. If you need more flexibility, there are also remote jobs that you can get. Some students also use freelance sites and gig apps to make ends meet.
Loan Management
No matter how you choose to pay for school, you should be mindful of your student loans. You may want to talk to your school’s financial aid department before you get any student loans. Some loans, like subsidized and unsubsidized student loans, are from the government and come with extra benefits. If these student loans are available for you, you should use these options before working with a private loan company.
It is important to borrow wisely. Sometimes, it can take time to get a solid career after graduation, so your loan debt must be manageable. Whenever possible, you should work to reduce the cost of your master’s degree in other ways and use student loans as a last resort.
Cost-Saving Tips
Once you have signed up for an affordable master’s degree, there are a few things you can do to create a budget and limit your expenses. While these tips won’t eliminate the cost of a master’s degree, they can make it more affordable.
Buying Used Textbooks: One way you can save significantly on school is by getting used textbooks. You can typically find used textbooks on Amazon or eBay. Sometimes, sites like Thriftbooks also have used options for a low price.
Utilizing Student Discounts: Your city’s local transportation system likely offers a student discount. You may also be able to get student discounts on food, software programs, and other items.
Healthcare on Campus: To save money on healthcare, try going to your on-campus health services department. Health services can treat most day-to-day problems, like colds and sprains, and they will often do it for free or at a low cost.
Housing Hacks: You never want to pay for an entire apartment on your own. If you’re in school, try finding roommates for your apartment to reduce the costs. You may also be able to find individual rooms for rent online but be cautious about who you rent from.
DIY Meals Vs. Dining Plans: An on-campus dining plan can cost about $450 a month. In addition to being expensive, you can only use this plan when you’re on campus at the right time of day. Quite likely, you would have to buy extra snacks for your dorm and restaurant meals if you are away from campus. Because of this, you could probably save a significant amount of money by buying and cooking food on your own.
Planning for the Unexpected
While you can plan ahead for some hidden costs, it isn’t possible to prepare for everything. You need to plan for the unexpected by setting up an emergency fund, buying insurance, and accessing mental health resources.
Emergency Fund: According to Suze Orman, only one out of three Americans can cover a sudden $400 expense. This is one of the reasons why an emergency fund is so important. Each time you get paid, put aside $20 to $50 in your emergency fund. Keep building your emergency fund until you have enough money to cover three to six months of your expenses.
Insurance: As a student, you should strongly consider getting health, dental, car, and renters insurance. Health and dental insurance are important for avoiding hefty fees if you have a physical issue, while car insurance is likely a state requirement. Meanwhile, renters insurance will be useful if there is a theft or natural disaster that affects your belongings.
Mental Health Resources: Many campuses have free mental health resources, and your health insurance likely covers some therapy costs as well. Going to school, paying tuition, and handling outside responsibilities can be stressful, so make sure you know where you can go for help when you need it.
Discover How to Pay for Your Master’s Degree
Budgeting for grad school is important because there are many hidden costs involved. Other than tuition fees, you’ll likely have to pay for textbooks, transportation costs, and living expenses. Plus, schools typically charge registration, technology, and library fees. By using these tips and being prepared, you can reduce the amount you have to borrow in student loans and save money on your master’s degree.