Grad Plus Loans for Living Expenses

Q: I hope to soon be entering a CRNA program, which is an advance practice nursing degree program (graduate school). The program is very demanding and while in the program working is not an option (because much of the program consists of clinical hours). Can I use a Grad Plus loan for living expenses, so I would not have to take out additional private student loans?

A: A Grad Plus loan (or graduate plus loan) is a low, fixed interest rate federal student loan that is processed directly through the college or university that you are taking the graduate program through. Similar to a private student loan a Grad Plus loan is credit based, however unlike a private student loan a Grad Plus loan is a fixed interest rate loan that is backed by the US Government.

Grad Plus loans are designed to cover grad school tuition and related expenses (such as room and board), which are determined by the college or university. The yearly limit on a Graduate PLUS Loan is equal to your cost of attendance minus any other financial aid you receive.

Depending on the total cost of your living expenses a Grad Plus loan may or may not be able to cover those total costs. Since graduate programs can vary, the best way to get the most accurate financial aid information for your specific situation, is to contact the financial aid department at the college or university that you are enrolled in.

A Closer Look At Paying For Grad School

Paying for graduate school can seem overwhelming, but with careful planning and looking at all options available, it can become a manageable goal. Let’s take a closer look at how to pay for grad school.

1. Understand the Costs of Grad School

Before exploring funding options, it’s essential to understand the total cost of graduate school. This includes:

a. Tuition and Fees: Varies widely by program and institution.

b. Textbooks and Supplies: Textbooks and necessary materials can add up.

c. Living Expenses: Rent, food, transportation, and other everyday costs.

d. Health Insurance: Many programs require students to have health insurance.

2. Federal Financial Aid

The first step for many students is to apply for federal financial aid through the Free Application for Federal Student Aid (FAFSA). Here’s how to maximize federal aid:

a. Direct Unsubsidized Loans: Graduate students can borrow up to $20,500 per academic year. Interest begins accruing immediately.

b. Grad PLUS Loans: These loans cover the remaining cost of attendance after other aid has been applied. They have a higher interest rate but offer flexible repayment options.

c. Federal Work-Study: This program allows students to work part-time while attending school to help pay for expenses.

Scholarships and Grants

Scholarships and grants are ideal as they do not need to be repaid. Here are some avenues to explore:

a. University Scholarships: Many institutions offer scholarships specifically for graduate students. Check with the financial aid office or your program’s department.

b. Professional Organizations: Many fields have organizations that provide scholarships for graduate students. Examples include the American Psychological Association or the American Medical Association.

c. Local Organizations: Community foundations and local businesses often sponsor scholarships.

d. Research Grants: If your program involves research, consider applying for grants that support research initiatives.

e. Scholarship Websites: Check out our free scholarship search on CollegeWhale to find thousands of dollars in free money for grad school.

4. Assistantships and Fellowships

Many graduate programs offer assistantships and fellowships that provide financial support in exchange for work or research commitments:

a. Teaching Assistantships: Often provide tuition waivers and a stipend in exchange for teaching duties or assisting professors.

b. Research Assistantships: These positions involve working on faculty research projects and often come with similar benefits.

c. Fellowships: These are usually merit-based awards that provide stipends and tuition coverage without requiring specific work in return.

5. Employer Sponsorship(s)

If you’re currently employed, check if your employer offers tuition assistance programs. Many companies provide financial support for employees pursuing further education, especially if it relates to your job. Some important aspects include:

a. Tuition Reimbursement: Some employers cover a portion of tuition costs after successful completion of courses.

b. Professional Development Funds: These funds can sometimes be used for continuing education or certification programs.

c. Contracts or Agreements: Some employers may require you to commit to staying with the company for a certain period after graduation in exchange for financial support.

6. Personal Savings and Family Help

Personal savings can also play a significant role in funding your graduate education:

a. Savings Accounts: If you’ve been saving for education, this can significantly ease financial burdens.

b. Family Contributions: Discussing funding options with family members can also help, whether it’s a loan, gift, or a plan to share living expenses.

7. Alternative Financing Options

If you still need additional funding, consider alternative financing options:

a. Private Loans: While these can help fill gaps, be cautious of interest rates and repayment terms.

b. Payment Plans: Some institutions offer payment plans that allow you to spread out tuition payments over the semester or academic year.

c. Income Share Agreements (ISAs): Some schools offer ISAs, where you pay a percentage of your income for a set period after graduation instead of upfront tuition.

8. Creating A Budget

Creating a realistic budget is crucial for managing your finances during graduate school. This includes:

a. Tracking Income and Expenses: Use apps or spreadsheets to monitor where your money goes each month.

b. Prioritizing Needs vs. Wants: Focus on essential expenses like tuition and housing before spending on non-essentials.

c. Finding Ways to Save: Look for student discounts, consider living with roommates, or use public transportation to cut costs.

9. Post-Graduation Considerations

Consider the long-term implications of how you finance your education:

a. Repayment Plans: Understand your loan repayment options. Federal loans offer various repayment plans, including income-driven repayment options.

b. Loan Forgiveness Programs: Research programs such as Public Service Loan Forgiveness, which can relieve student debt for those working in public service.

Paying for graduate school requires a bit of planning, but by exploring federal aid, scholarships, assistantships, personal savings, and alternative financing options, you can create a comprehensive plan to make your graduate education a reality!