How can you borrow less for grad school?

The cost of graduate school can be prohibitive for prospective students without the help of loans. And soon, borrowers planning to take out federal student loans for graduate or professional school will face stricter limits on how much they can take out.

As part of the recently-passed Trump budget bill's student loan shifts, beginning July 1, 2026, graduate students can borrow only $20,500 per year, with a $100,000 lifetime limit. Meanwhile, professional students (think med school or law school) will have an annual cap of $50,000 and an overall borrowing limit of $200,000.

Of course, borrowing less is not inherently a bad thing — the less you borrow, the less you will have to repay later, plus interest. However, the new cap means some students "will fall short" on getting the funding they need, said The New York Times. Private student loans are technically an alternate option, but they have stricter eligibility criteria, fewer borrower protections and often steeper interest rates.

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Here are some other ways to help cover the cost of grad school.

Focus your search on affordable programs

One easy way to lower your grad school tab is to find a more affordable program to attend. You might "consider enrolling in an online program or in-state public university," said Bankrate. If you do not have an in-state program you want to attend, check out the surrounding states' options as well. "Some states have agreements with neighboring states that allow out-of-state students to attend college at in-state rates," which can offer major savings.

Opting for a shorter program can also minimize costs — "for a master's degree, one-year programs cost half as much as two-year programs, and in the end, you still get the degree," said Investopedia.

Apply for scholarships, fellowships and grants

Scholarships, fellowships and grants are another way to help cover your costs — and, unlike student loans, this is money that you typically will not have to repay later.

Scholarships are "usually awarded based on merit or achievement." This is similar to fellowships, which are often "awarded to applicants with exemplary achievements," though they may also "require research in return for the reward," said NerdWallet.

Grants, on the other hand, are more likely to be based on a student's financial need. That said, there are also grants available for those "pursuing careers in designated high-need fields," such as teaching in an area in need of teachers or in a typically understaffed subject area.

Work while you are in school

While perhaps not the most appealing option, working even part-time while you attend grad school can go a long way toward cutting down costs. You might not even have to leave campus to do so; many programs have research and teaching assistantships, which "typically cover at least part of tuition and pay a periodic stipend in exchange for research or classroom instruction," said U.S. News & World Report.

Working off-campus can have its benefits, too. Some employers will help you pay for school while you work for them, an arrangement known as tuition assistance. The arrangement may be more common than you think — "47% of employers offer some kind of undergraduate or graduate tuition assistance," said NerdWallet, citing a 2020 survey by the Society for Human Resource Management.