Working toward a doctoral degree is a monumental undertaking. Figuring out financing is an important part of the task. This can seem intimidating, with so many options to look at\u2014and so many dollars involved. Brett Pequin, Capella University\u2019s Associate Financial Aid Advisor for doctoral programs, discusses the best ways to approach doctoral program financing and things you should know.<\/p>\n
His first piece of advice? \u201cTake it one step at a time,\u201d says Pequin. \u201cThat means being sure the doctoral process is right for you<\/a>. A PhD or professional doctorate is not a cakewalk. Is the advantage of getting one greater than the cost you\u2019ll incur? Will it further your career? What\u2019s your motivation behind getting a doctoral degree?\u201d In other words, before you sign up for a program, make sure you\u2019ve identified the ways it will benefit you.<\/p>\n \u00a0<\/strong><\/p>\n It\u2019s critical that you establish a budget that identifies what the degree will cost, and where the money will come from. Questions to ask yourself include:<\/p>\n <\/p>\n Once you\u2019ve determined that the doctoral program will be of value, you\u2019ve asked and answered the budget questions above, and you\u2019ve been accepted into a program, the next step for financial planning is to fill out the Free Application for Federal Student Aid<\/a> (FAFSA). Don\u2019t hesitate to call on your school\u2019s financial aid office for assistance with FAFSA if you need to. \u201cWe can\u2019t do anything without it,\u201d says Pequin. \u201cOnce the FAFSA is complete, we can determine your federal financial aid eligibility and assess possible scholarships, tuition discounts, assistance through your employer, and credits you can transfer that can reduce your overall cost. As we gather this information, the financial picture becomes clearer.\u201d<\/p>\n At Capella, doctoral students will develop a spreadsheet during their first quarter to help them keep track of their costs and aid. The spreadsheet, called the Personal Education Financing Plan (PEFP), helps learners track their financial picture quarter-by-quarter.<\/p>\n <\/p>\n Student debt can become overwhelming, so it\u2019s important you only borrow exactly what you need. But before you even do that, consider the following funding options:<\/p>\n \u00a0<\/strong><\/p>\n Once scholarships or tuition assistance of any kind has been factored in, it\u2019s time to look at Stafford Loans<\/a>, which are U.S. Department of Education student loans. Pequin notes that Stafford Loans are central to the doctoral financial process. \u201cThey\u2019re the backbone of the overall financing,\u201d he says. \u201cYou build up or take apart around it.\u201d<\/p>\n An important thing to know about Stafford Loans is that they are finite: there\u2019s an annual limit at the doctoral level of $20,500, with a lifetime maximum of $138,500 (except for medical degrees). Students who have been using Stafford Loans for undergraduate and master\u2019s programs will need to determine their remaining eligibility to fully understand their financial picture.<\/p>\n For additional educational expenses, you may look to other federal loan programs like Graduate PLUS<\/a>.<\/p>\n <\/p>\n <\/p>\n If your dissertation takes longer than expected, and as long as faculty and advisors will attest to the fact that you\u2019re still making progress and are likely to complete your dissertation, additional loans and aid may still be available to you. This will depend on a number of variables within each program. (Note: There are no extensions beyond the cap on Stafford loans.) No matter what, you should only borrow what you actually need; if you borrow heavily in the beginning, you may run out of resources before you complete your degree.<\/p>\n Academic financial aid organizations do understand that completing a dissertation is a major undertaking. \u201cIn general, the longer it takes to complete your dissertation, the more loans you will take out. Essentially, time is money in a dissertation,\u201d says Pequin.<\/p>\n Remember: the time spent in the dissertation phase is driven entirely your pace. As you plan for that time\u2014and those expenses\u2014be sure to factor in what it will cost you if you don\u2019t meet your original finish date. Can you afford to keep going if that happens?<\/p>\n <\/p>\n <\/p>\n Want more information? Capella\u2019s financial planning checklist<\/a> can help guide you through the financial aid process.<\/p>\nEstablishing a Budget<\/h4>\n
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Starting the Financial Aid Process<\/h4>\n
Determine How to Get What You Need<\/h4>\n
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Stafford Loans and Graduate PLUS<\/h4>\n
Finishing Your Dissertation<\/h4>\n