‘How America Pays for Graduate School’ Finds Grad Students Spent $24,812 Last Year; Most Pay for Grad School Through Borrowing; and Half of Those with Federal Loans Expect Loan Forgiveness
Quality and Convenience Outweigh Cost When Choosing Where to Enroll
Sallie Mae Announces New Scholarship Program for Grad Students
Career aspirations are driving students to graduate school, they’re
footing the bill themselves, and borrowing is the number one way they’re
paying for it, according to “How America Pays for Graduate School," the
new national study from Sallie Mae — the nation’s saving, planning, and
paying for college company — and Ipsos, an independent global market
research company. Two-thirds of grad students (64 percent) believe an
advanced degree is the new minimum standard level of education for any
professional occupation, and nearly all (95 percent) say an advanced
degree is necessary to enter, advance, accelerate, or remain competitive
in their chosen career.
Students spent an average of $24,812 on grad school in academic year
2016-17, and more than three-fourths of them (77 percent) paid for it,
at least in part, by borrowing. Funds borrowed by students covered more
than half of the cost (53 percent), while money students earned,
including income and savings, paid for 24 percent. Grants, fellowships,
scholarships, and tuition waivers accounted for 15 percent. Eight
percent of grad school costs came from funds borrowed or contributed by
parents or others.
Federal student loans paid 27 percent of the bill, or $6,853, and
private student loans covered 8 percent ($2,077). Half of the grad
students who used federal student loans said they expect to receive
Public Service Loan Forgiveness after they graduate. Two-thirds of grad
students (64 percent) filed a Free Application for Federal Student Aid
(FAFSA).
“‘How America Pays for Graduate School’ provides a fascinating contrast
to Sallie Mae’s annual ‘How America Pays for College’ study, and finds
that graduate students are more results-oriented in their pursuit of a
graduate degree, and they expect a return on their investment in the
form of a significant jump in their earnings potential,” said Julia
Clark, senior vice president, Ipsos Public Affairs. “As students
increasingly regard having a graduate degree as an educational ‘norm’
for professional careers, it will be interesting to see the extent to
which employers agree.”
Cost is less of a factor in the final enrollment decision, as more than
eight in 10 based their enrollment decision on a school’s academic
offerings, prestige, location, campus culture, or other personal
consideration. Eight in 10 grad students (80 percent) said they took
more responsibility for paying-for-school decisions than they had for
their undergraduate studies. The majority of grad students (63 percent)
entered their advanced degree program within 12 months of obtaining
their undergraduate degree.
“It is human nature to plan for what you value, and that includes
graduate school. Today’s students see graduate school as their ticket to
a successful and prosperous career, and most have a plan to pay for
their advanced degree before they enroll,” said Raymond J. Quinlan,
chairman and CEO, Sallie Mae. “That planning pays off: the overwhelming
majority are confident in the financial decisions they’ve made about how
to pay for their graduate education.”
The study reveals that scholarships and grants are far less available
for grad students than for undergrads, accounting for just 15 percent of
grad school costs. In comparison, the companion study by Sallie Mae and
Ipsos, “How America Pays for College 2017,” found that scholarships and
grants paid for 35 percent of undergrad costs.
In response, Sallie Mae announced a new Bridging the Dream Scholarship
for Graduate Students that will award four $20,000 scholarships in 2018.
Students may apply by visiting SallieMae.com/BridgingTheDreamGrad.
For more information, see official
rules. No purchase necessary. Ends Feb. 14, 2018, at 11:59 p.m. EST.
“How America Pays for Graduate School” reports the results of 1,597
online interviews Ipsos conducted between May 18 and July 19, 2017, of
students age 20 or older enrolled full or part time in graduate school.
The complete report and infographic are available at SallieMae.com/HowAmericaPaysGrad.
Join the conversation using #HowGradsPay.
Find additional research from Sallie Mae and Ipsos, including “How
America Pays for College,” “How America Saves for College,” and “How
American College Students Manage Their Finances,” at SallieMae.com.
Ipsos is a global independent market research company ranking
third worldwide among research firms. At Ipsos, we are passionately
curious about people, markets, brands, and society. We make our changing
world easier and faster to navigate, and inspire clients to make smarter
decisions. We deliver research with security, speed, simplicity, and
substance. We believe it’s time to change the game — it’s time for Game
Changers! Visit http://www.ipsos-na.com
to learn more.
Sallie Mae (Nasdaq: SLM) is the nation’s saving, planning, and
paying for college company. Whether college is a long way off or just
around the corner, Sallie Mae offers products that promote responsible
personal finance, including private education loans, Upromise rewards,
scholarship search, college financial planning tools, and online retail
banking. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM
Corporation and its subsidiaries are not sponsored by or agencies of the
United States of America.