Quick Highlights:
- According to US News, the average cost of tuition and fees for a master’s degree is $23,630 for out-of-state students at a public university. Private schools can cost even more.
- Think about all costs like tuition, books, living costs, health insurance, and travel.
- Look for scholarships and consider working part-time. Try tips like buying used textbooks or cooking at home.
- Set aside some money in an emergency fund and make sure you have the right insurance.
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Last updated: March 18, 2025
Making the decision to get a master’s degree is an exciting step. College graduates earn more money over their lifetime, so this decision could be the start of a lucrative future. Before you can start enjoying the financial benefits of getting a degree, you have to learn how to start budgeting for grad school. Student loans, tuition fees, and hidden costs can quickly add up, so it’s important to find ways to decrease these expenses.
To reduce the costs of your master’s degree, you should start by calculating all of the expenses connected to getting your degree. Then, you should go through the items on this list one at a time and determine ways to alleviate these hidden costs. At the same time, you should work on limiting your overall expenses before school starts so that you can build up a decent emergency fund.
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Identifying Hidden Costs
While tuition is expensive, your schooling costs involve more than just paying for college credits. You will need to cover the cost of your:
- books
- supplies
- living expenses
- health insurance
- transportation
- medical fees
In addition, there may be hidden costs, like professional development fees, that you will need to incorporate into your budgeting for grad school.
Tuition-Related Fees
According to US News, in the United States, the average cost of tuition and fees is $24,513 for out-of-state students and $11,011 for in-state residents. At private schools, students pay an average of $43,505 per year.
Unfortunately, these aren’t your only tuition-related costs. Many schools also charge technology, registration, and library fees. While these fees are typically just a few hundred dollars each, they can quickly add up.
Books and Supplies
Next, you also need to look at the hidden cost of your books and materials. Textbooks cost an average of $115.00 each. Unfortunately, you won’t be able to buy just one. Even a single class can require multiple books. Because of this, the cost of textbooks can easily add up to more than $1,500 per year.
Fortunately, there are ways to decrease this cost. If you buy used textbooks instead of new ones, you can save significantly. Additionally, you may be able to borrow books from the library if you only need them for a short period of time.
Depending on the subject you are studying, you may need to pay for extra supplies, like specialized equipment and software programs. For example, computer science programs may require a specific type of computer. Meanwhile, film courses may require a special camera and microphone setup.
Living Expenses
Living expenses are often higher than you might expect during college. Many universities are located in cities and coastal areas, which have a higher cost of living. Before you move, research the cost of on-campus housing and off-campus apartments beforehand.
Transportation
If you don’t live on campus, you may have to pay for a car and gas to get to school. Meanwhile, on-campus students will need to pay for parking if they live on campus.
Health Insurance and Medical Fees
Unless you are able to remain on your parents’ insurance plan, you will have to pay for insurance through your work, a state health exchange, or your university. While this hidden cost can add up, you need to have health insurance in case an emergency happens. In addition, you need to plan ahead for health service fees, like copays, because these will have to be paid when you get medical care.
Professional Development
Depending on what you study, you may have to pay for other hidden fees, like professional development costs. To prepare for your post-graduation career, you may need to budget for conferences, networking events, and workshops. Many schools also have honor societies for specific majors. If you are a part of one of these groups, you may get to go to another city or state to discuss your academic papers and research.
Financial Planning Strategies
If you want to avoid having a significant amount of student loans, you can’t focus solely on your tuition fees. You will also need to add up all of the hidden fees connected to getting your master’s degree.
Budgeting
To get started with budgeting for grad school, you need to sit down and create a budget. Write down all of the tuition fees and hidden costs you can think of. Because many of these are recurring costs, you should add them up for the entire year. Then, you can divide this total into a monthly dollar amount you will need to set aside.
Scholarships and Grants
To obtain an affordable master’s degree, look for a college that offers a lot of institutional aid, like scholarships and grants. With a master’s degree, Pell Grants and other types of federal aid are generally unavailable. Because of this, you should look for scholarships, state grants, and other types of aid to make up the difference.