In September 2001, I wrote A Matter of Degrees for BUYandHOLD. This article about financing an undergraduate degree is still fairly viable today. A graduate degree is another matter. The pace changes, and the financial options change, too.

If you plan to pursue a graduate degree immediately after you obtain your bachelor's degree, there may be a span of three months between the two degrees where you'll have nothing to do. If you're so lucky, take advantage of those three months to relax. You'll need it. If you go immediately from undergrad to grad with nothing but a weekend to move, be prepared for a drastic change in lifestyle. Trust me, I know.

The grad school I craved accepted me during graduation week for my bachelor's degree. Their program is based on a core curriculum, and one of the core courses wouldn't be offered again for over another year. Could I attend? Of course! As I danced around the living room in celebration, it dawned on me?how was I was going to pay for the course(s) offered?

No one expects to jump from undergrad to grad within a week; but, if your grade point average is above 3.5, you write an acceptable entrance essay, your letters of recommendation are stellar, and your GRE scores are high, it could happen. The great news is this: if you already have a FAFSA for your undergrad education, it carries over into grad school if you attend immediately during a regular FAFSA cycle (like winter to spring quarters).

The financial aid department at your new university will help you with the minor details, and the changes can be made online if you haven't lost your PIN from your undergrad application. Most times, you'll just renew the FAFSA for the following fall entry to the new university. Once again, the new school will help you with this document if you need direction.

Once the changes are made (a little modification to the education level and the school code), it takes about a week for the money to change hands. Not only does the school get paid, but you get paid as well. Doesn't that sound lovely?

Getting paid to attend grad school sounds breathtaking until you understand you may not be eligible to receive a Federal Pell Grant. Reason? Because "you have your bachelor's degree, you're working on a degree beyond your bachelor's degree, or both." If you just attended an exit interview from your previous school, which is required by FAFSA when you graduate, then you know just how much you owe the Federal Government and when your payments begin. If you add another two years of loans - yes, loans - you may lapse into what I call an "educated faint."

Even though these loans carry lower interest rates (way lower) than conventional loans, they're still loans. They must be paid back. In fact, the payback is serious - if you declare bankruptcy, you can't lump your school loans in with your other creditors. They'll still be there waving at you after filing chapter 7 or 13. If you die and your children are no longer minors, then your children pay. That thought is either horrifying or marvelous, depending on the relationship you have with your grown children. If you haven't thought about it by now, let me say it for you: this is the time to make sure your insurance policies cover what you'll owe if something ever happens to you.

Of course, none of this applies to you if you have about $20,000+ socked away in savings and a portfolio expressly for a master's degree. In this case, the FAFSA process is a moot issue, as it's not worth going into debt. The only rationale for increasing this debt is the old adage, "it takes money to make money." The debt accrued in acquiring a graduate degree can be considered an investment for our future.

The investment here is time and income we forgo in obtaining a grad degree. There's very little time allotted for a fulltime job during a fulltime grad stint. The plus side to the loan situation is borrowing options based on financial need. You have a choice of how much you want to borrow per quarter/semester up to a stipulated amount. The school gets paid first, and you get paid next - usually about six weeks later. This sum is enough for about two college courses, apartment rental, books, and the monthly payment to your portfolio. Oh yes - and food. Food is a vital component to the grad school budget.

Once you realize and accept you're in the grips of financial limbo for about two years, things might become a little smoother. Just pretend you're a retiree on a fixed income. If you've lost your job, further education might even be a viable way to survive.

The silver lining to the cloud of slim pickings is the option for fellowships and scholarships once you begin to show your merit as a student either to your new institution or to an outside source of aid. If you're organized, and you have time to surf the web for grants and fellowships for your major, then you'll have the upper hand. Sometimes, the new university will help you search for these monies.

As you search for fellowships, grants, and schools, what you'll find may pleasantly surprise you. Some institutions might pay full tuition, including stipends to allow you to live in a modicum of comfort while you pursue a higher degree. These fellowships, traineeships, and other forms of financial gifts depend on the school you attend, your major, and your academic merit.

When I finish my doctoral degree, Cora will be ready for her first year of college. Cora's only comment to that situation was, "At least you'll know how to pay for my schooling." Did she mean it would be a good idea for me to work?

Until next week,
Linda Goin