How to financially prepare for grad school

Deia Schlosberg had been working as an environmental educator, teaching students how to protect the planet and use its resources wisely. While she loved teaching, she wanted to reach people on a larger scale. So, she decided to follow her dream of becoming a filmmaker—a dream that would require her to return to school for a graduate degree. She had no idea at the time that it would lead to becoming an award-winning documentarian.

Schlosberg’s choice paid off, but attending grad school as a working adult can be a challenge. There are many benefits to getting an advanced degree. For example, you can learn more, earn more, and continue in your current job or prepare for a career change. 

However, you might also find yourself stressed by the expense and potential debt. That’s especially true if you have kids, a home or other financial responsibilities. So, a big question on your mind could be, “How much should I save for grad school?”

Below are some lessons on how to financially prepare for grad school to help determine if and when you should go back to school.

Getting an advanced degree may seem like a ticket to success. However, depending on your chosen area of study, the outcome may vary. For Schlosberg, it was a bit of a risk. It can be difficult to get a break into the film industry, and going to grad school could mean having debt for a long time. Is this the type of outcome you would be willing to accept?

According to Emma Johnson, an author, career consultant and blogger, there are a few things you can do to help decide whether going back to school is right for you:

• Do your homework. When considering how to pay for grad school as a working adult, research your degree options and the jobs they might lead to. Compare the costs, program format and scheduling to find one that fits your budget, career goals and work schedule. Once you’ve determined what kind of job you would look for after grad school, search online for information about its average earnings.
• Think about your goals. It can help to write out your goals for going back to school. Some benefits are obvious, like earning more money, building a professional network and gaining skills. Others are less so, such as finding personal satisfaction. Once you know your goals, it will be easier to determine if a graduate degree makes sense in your personal and professional life. 
• Give your degree program a test run. Consider taking classes that relate to the degree you’re interested in. These classes can give you a taste of the subject matter you’ll be studying and help you meet people in the field. Also, if there are prerequisites (required courses you must complete before entering a graduate program), they often cost less online or at a community college. Just make sure these course credits will be accepted at the graduate school you plan to attend.
• Take a hands-on approach. To level up in your existing career or find out what it’s like in a new field, think about getting some work-related experience first. For instance, attend conferences and networking events where you can meet higher-level professionals. This tip also works well if you want to change careers.

How to financially prepare for grad school as a working adult can be complicated, but you’ve decided you’re ready for it. Plus, knowing how to prepare your finances before grad school is especially important if you’re also prioritizing saving for retirement or paying for a child’s education.

Figuring out how much to save for grad school begins with determining the cost of attendance. Here are a couple ways to do that, according to Johnson:

• Do the research. Once you find a school and degree that you like, visit the school’s website. Some schools may provide the cost of tuition, fees and estimated costs for books, supplies and transportation. Costs can differ, depending on several factors. These include whether you attend full or part time, whether you attend a public or private school and whether you’re an in-state or out-of-state resident. Plus, you’ll need to factor in the time it takes to get your degree.
• Determine your budget. Once you have a handle on the school-related costs, build a spreadsheet that accounts for these costs and estimates monthly income and living expenses. Working through a savings plan beforehand can show how much you’ll need to budget monthly for tuition plus living expenses. Once you determine these factors, you’ll get a better idea of what you need to save up.
• Create a savings buffer. After you determine your monthly costs, budget a little extra for unexpected expenses. “Your savings should not only depend on tuition but also what the degree is. In other words, how easy it will be to repay once you are working in the desired field,” Schlosberg says. She saved a little more than she estimated, giving herself an extra cushion to cover some of the potential risk to her finances.

One key factor in planning the timeline for earning your graduate degree: Don’t be in a rush. If you need to, create the time to save. It may not be necessary to go back to school full time or finish on a particular schedule, Johnson says. She mentions these possible paths to earning your degree when planning how to pay for grad school as a working adult:

• Keep working. One option is to go to school full time and work part time. You may not make as much as you did as a full-time employee, but the income can work together with your savings.
• Attend school part time. Go to school part time (nights and weekends) while working. It will take longer, but it will likely minimize your debt, which could be better in the long run.
• Go slowly. Only sign up for a class or two—whatever you can afford—and continue to work. This part-time approach may take even longer. But it could help you avoid taking on more debt than you can handle.
• Take online classes. Consider online programs that could lower the cost of tuition and allow you to continue working full time.

So, you’ve done your research on how much you need to save while determining how to financially prepare for grad school. But there are ways to reduce or get rid of some of those costs. Here are some solutions that may help pay your grad school bills:

• Consider loans, financial aid and scholarships. “I took out some student loans for living expenses, but I tried to pay off my tuition as I went by working through school,” Schlosberg says. Graduate students may also be eligible for different types of scholarships and grants, which are forms of financial aid that don’t need to be paid back. Depending on your area of study, you can earn scholarships and grants through several different sources. These include federal and state organizations, private foundations, public companies and professional organizations.
• Ask your employer to pay the tuition. One way to financially prepare for grad school is to talk to your manager or human resources representative. They can tell you whether your employer will help pay for school or has other education benefits that could help cover part or even all of your degree. This option is most likely if you plan to move up into a managerial or leadership role or use your new skills on behalf of the company.
• Take advantage of in-state tuition. Some people move to the same state as their desired school to try to reduce their tuition. “I moved to Montana and worked a couple jobs for a year before applying so I could get in-state tuition,” Schlosberg says. Whether you’re already a resident or decide to move to a new state, determine how long you need to be a resident to qualify for in-state tuition at your desired school.
• Cut back on nonessential expenses. Seemingly small things like adjusting your lifestyle to lower your monthly costs might go a long way in resolving how to prepare your finances before grad school. This could mean fewer shopping trips or dinners out, among other things. (Do you really need that daily latte?) “You may have to downscale your career and current lifestyle to go back to school,” Johnson says.

Answering the question of how to financially prepare for grad school as a working adult means doing research and preparation. Many people say it’s worth it, including Schlosberg. It not only gave her a whole new start, but a wealth of knowledge going forward to support her future. “Getting a graduate degree gave me the confidence to jump into a new career. I met an amazing network of people,” she says.

But an advanced degree may not be necessary. While it could look impressive on a resume, a master’s degree isn’t a requirement for many employers. “Whatever you do, don’t go back to school just for the sake of getting a degree,” Johnson says. When thinking about how to financially prepare for grad school, make sure it fits into your financial picture. That way, you’ll be able to “weigh your sacrifices against future gains,” she says.

• A graduate degree is a major investment, so make sure it supports both your career goals and your financial future.
• Creating a realistic budget and savings strategy can help reduce the cost of grad school. 
• The more you can lower costs through scholarships, employer benefits or a part-time job, the smaller your financial responsibilities will be.

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