Grad Plus loans allow students to borrow 100% of the cost of attendance for any master’s or doctorate program, even if they are enrolled part-time. This loan has had a devastating impact on students. Here are a few BETTER ways to fund graduate school after this loan is eliminated in 2026.
A quick summary of the Grad PLUS Loan program:
1. Unlimited borrowing and high debt burdens
Grad PLUS loans allowed graduate students to borrow up to the full cost of attendance, including living expenses, after other federal loans were used. Because there was no meaningful borrowing cap, many students accumulated enormous debt loads. Some borrowers finished graduate school owing well over $100,000, especially in programs that offered little financial return (and there are a lot of those!) The easy access to unlimited funds made it too simple to borrow more than what could be repaid on a reasonable income.
2. Tuition inflation and weakened value
The availability of Grad PLUS loans contributed to tuition inflation. Colleges understood that students could borrow as much as needed, so they raised prices accordingly. The result is that graduate school costs have climbed much faster than inflation, often without improving educational quality or job placement outcomes. Students paid more, borrowed more, and often did not see a corresponding increase in earnings after graduation.
3. Borrower risks and long-term hardship
Many graduates with Grad PLUS loans find that their monthly payments are unmanageable, leading to decades of repayment. Some must rely on income-driven repayment or forgiveness programs, which extend the burden and increase total interest paid. For homeschool families who value independence and financial responsibility, this kind of long-term debt can severely limit flexibility, delay major life goals, and create constant financial stress.
If you’d like to learn a smarter way to pay for your education, my new book, Creative College Funding: How Smart Homeschooling Families Get Through College Without Debt, is dedicated to this topic!
I’ve always been willing to find creative ways to get through college without debt, and my family is on degree #14 without debt. You can do this too!
1. Parent Works for a College or University That Offers Dependent Tuition Benefits (Pages 182–199)
One of the most powerful ways to earn a free or deeply discounted graduate degree is to work for a college or university that offers tuition benefits. My husband’s MBA and doctorate were both paid by his university. Many schools extend this benefit to employees’ spouses and dependents, sometimes covering both undergraduate and graduate courses. While getting the entire degree funded for dependents is unlikely, there are tons of programs that offer some funding.
For example, the University of Kentucky provides a Family Education Program that starts with a 10 percent tuition discount for spouses and dependent children after one year of service and increases by 10 percent each year, up to 50 percent after five years.
At Western Kentucky University, dependents of full-time employees receive a 50 percent discount on tuition and mandatory fees for undergraduate courses, while spouses or other qualified dependents receive the same 50 percent discount for up to 18 credit hours per year that can be applied to undergraduate or graduate coursework.
Northern Arizona University and Arizona State University both extend similar benefits through the state’s Qualified Tuition Reduction Program, which provides 75% discount on in-state tuition for employees, spouses, and dependent children.
I often encourage families to look for employment in higher education, even in non-teaching roles like administrative support or technical services. The tuition benefit can effectively pay for graduate school and, in many cases, help dependents earn college credit or full degrees at little or no cost.
2. Student Works Part-time for a Company That Pays 100% of an Online Degree (Page 40)
Another way to pay for graduate school without borrowing is to work for a company that offers 100% tuition coverage for distance learning. Many large employers partner with accredited colleges and universities to provide fully funded or deeply discounted degree programs for their employees. Most even include graduate-level options. Students can work part-time (or full-time) and complete their coursework on a flexible schedule when using distance learning.
For example, Walmart’s Live Better U program offers employees the opportunity to earn degrees at no cost, including master’s programs in business, leadership, and technology through partner universities like Purdue Global and Southern New Hampshire University.
Target’s Dream to Be Program provides 100 percent tuition coverage for employees pursuing approved degrees at institutions such as the University of Arizona, Oregon State University, and Morehouse College.
Discover Financial Services offers up to $10,000 per year toward graduate tuition for employees enrolled in eligible programs, and Bon Secours Mercy Health provides a similar annual benefit for healthcare-related master’s programs.
When families plan early, I often suggest that teens consider college majors or career paths that lead to companies offering this kind of tuition benefit. By the time they’re ready for graduate school, they can complete the degree debt-free while working in their chosen field.
3. Enroll in a Tuition-Free or Nonprofit Graduate Program (Page 171)
A third strategy is to seek out tuition-free or nonprofit programs that provide low-cost, legitimate graduate degrees. These programs often serve adult learners and homeschool graduates who value flexibility and affordability.
One example I highlight in Creative College Funding is Saylor Academy’s Master’s Programs. Students can complete a tuition-free master’s degree in business, marketing, management, or entrepreneurship. The only required cost is a $5 exam-proctoring fee per course, bringing the total program cost to under $100 for the entire degree. This program is new and currently only available to Florida residents, but I’m watching this to open up for everyone in the coming years.
My current favorite option is University of the People, a nonprofit, tuition-free university that offers master’s degrees in education, information technology, and business administration. Students pay small assessment fees per course, keeping the total program cost around $3,000–$4,000 for an entire accredited master’s degree. University of the People now has both regional and national accreditation.
These programs prove that it is still possible to earn an advanced degree affordably. For motivated students willing to explore nontraditional pathways, these options can eliminate the need for Grad PLUS or private loans altogether.
