Have you thought about how you’re paying for graduate school?
Going to graduate school is a life changing decision.
Maybe you’ve just finished your undergraduate degree and you’re immediately ready to continue your education. Perhaps you’ve had a job for several years and now you want to make a change, start over, or start fresh. Whatever the case may be going to back to school—especially grad school—is a brave new undertaking.
Finances play major role in starting your new journey.
Naturally, most people choose loans to pay for their continuing education. Graduate loans are different than undergraduate loans.
Paying for graduate school takes planning and a understanding of the basics.
- Interest Rates. Unfortunately, as a graduate student, you will have to pay a higher interest rate than undergraduate students. Since graduate students don’t qualify for subsidized loans the interest rates are subject to change. They are not set. Furthermore, graduate loans are at the mercy of a constantly changing market.
- You can take out more, however . . . With a Stafford loan graduate students can get up to $20,000 per semester. However, even if you’re going into a lucrative career, there is the danger of being burdened by student loans for twenty plus years.
- 529 plan. A 529 plan is offered in all 50 states. According to sec.gov, “Most prepaid tuition plans are sponsored by state governments and have residency requirements. Many state governments guarantee investments in pre-paid tuition plans that they sponsor.” There are two types of 529 plans: pre paid college tuition and college saving plan.
If you’re trying to navigate which loan will work best so you can start paying for graduate school, consulting a CPA might ease the difficulty of choosing a financial route that is right for you.
Your future is important and the benefits of pursing higher education should not be deluded by the threat of student debt. Talking to a CPA can help give you a clear understanding of your financial situation and how to reach your goal for a bright future.