Graduate School: Question of the Week

"My employer does not offer tuition reimbursement.  How am I going to pay for it?"

Graduate school financial assistance, in most cases, will be a different experience when comparing to your undergraduate scholarships, grants, and student loans.  Most graduate schools offer minimal scholarship opportunities for part-time students and the state and federal governments utilize their grants at the undergraduate level.  So many part-time graduate students will either try to pay per semester or in many cases, will simply file the FAFSA and take out federal student loans.  At the graduate and professional school level, students are eligible to take out $20,500/year in Stafford loans.  This will cover tuition and fees at most schools, so students will not have to find alternative ways to pay the school.  Some people a very reluctant to take our student loans because they fear making monthly payments for an extended amount of time.  But think of it this way -- 

Person A:  She decides to get her graduate degree.  Over the course of the two-year program, it will cost roughly $18,000 and she takes out the entire amount in federal student loans.  When completed with the degree, she sets up a 10-year loan repayment plan at 6.8% interest (federal rate), so she'll pay around $200 per month.
Person B:  He decides to buy a used car for $18,000.  The dealership sets him up with a 5-year loan at 5.5% interest, making his payments roughly $350 per month.

Here's my point - Many of us will not bat an eye at a $350 car payment, but will complain about making a smaller student loan payment.  Yes, it is for an additional five years, but the degree doesn't depreciate.  Twenty years from now your graduate degree will still be on our resume, but where will that car be?  My guess is the junkyard.