Financial Aid for Psychology Students

Psychology education represents a significant investment, but numerous funding sources can help make your educational goals financially achievable. Understanding financial aid options is essential for planning your educational journey.

Types of Financial Aid

Grants and Scholarships

Grants and scholarships provide funding that does not require repayment, making them the most desirable forms of financial aid.

Federal Grants: The Federal Student Aid program offers Pell Grants and other need-based grants for undergraduate students. Complete the Free Application for Federal Student Aid (FAFSA) annually to determine eligibility.

Institutional Scholarships: Colleges and universities offer merit-based and need-based scholarships. Review financial aid pages of prospective schools and contact financial aid offices directly.

Professional Organization Scholarships: Organizations like the American Psychological Association and its divisions offer scholarships for psychology students, particularly at the graduate level.

Graduate Assistantships

Graduate assistantships provide stipends and tuition remission in exchange for teaching or research assistance, making them highly valuable for graduate students.

Teaching Assistantships (TA): Students assist with undergraduate courses through grading, leading discussion sections, or laboratory instruction. TAs develop pedagogical skills while earning funding.

Research Assistantships (RA): Students work on faculty research projects, gaining valuable research experience while receiving financial support. RAs are particularly common in PhD programs.

Many doctoral programs in psychology provide full funding packages including tuition waiver, stipend, and health insurance through assistantships. When researching degree programs, inquire about funding availability.

Fellowships

Fellowships provide financial support based on merit, allowing students to focus on research or studies without teaching or research obligations.

Federal Fellowships: Programs like the NSF Graduate Research Fellowship provide substantial funding for graduate research in psychology and behavioral sciences.

University Fellowships: Many institutions offer competitive fellowships for outstanding graduate students, particularly in the first year or dissertation stage.

Diversity Fellowships: Numerous fellowships support students from underrepresented backgrounds in psychology, advancing diversity in the profession.

Student Loans

When grants, scholarships, and assistantships do not cover full costs, student loans provide additional funding.

Federal Student Loans: Direct Subsidized and Unsubsidized Loans offer lower interest rates and flexible repayment options compared to private loans. Graduate students can access Direct PLUS Loans for additional funding.

Private Loans: Private lenders offer additional loan options, though typically with higher interest rates and less favorable terms than federal loans. Exhaust federal options before considering private loans.

Loan Forgiveness Programs

Several programs offer loan forgiveness for psychologists working in specific settings or with underserved populations.

Public Service Loan Forgiveness (PSLF)

The PSLF program forgives remaining federal student loan balances after 120 qualifying monthly payments while working full-time for qualifying employers (government or nonprofit organizations).

National Health Service Corps (NHSC)

The NHSC offers loan repayment to licensed mental health providers, including psychologists, who commit to serving in Health Professional Shortage Areas.

State Loan Repayment Programs

Many states offer loan repayment assistance for mental health professionals working in underserved areas. Contact your state's health department for information about available programs.

Funding Strategies by Education Level

Undergraduate Students

  • Complete FAFSA annually for federal grant eligibility
  • Apply for institutional scholarships
  • Consider work-study programs
  • Seek department-specific scholarships
  • Maintain strong GPA for merit-based aid

Master's Students

  • Explore assistantship opportunities
  • Apply for professional organization scholarships
  • Consider employer tuition assistance if working
  • Research grants for specific populations or specializations

Doctoral Students

  • Prioritize programs offering full funding packages
  • Apply for competitive fellowships (NSF, APA, etc.)
  • Seek research grants to support dissertation work
  • Explore diversity fellowships if eligible
  • Consider loan forgiveness programs for career planning

Application Tips

Start Early

Many scholarships and fellowships have early deadlines, sometimes a year before program start dates. Create a calendar of application deadlines and requirements.

Cast a Wide Net

Apply for multiple funding sources to maximize opportunities. Even small scholarships accumulate to meaningful support.

Tailor Applications

Customize application essays and materials to align with each funding source's mission and priorities.

Maintain Academic Excellence

Strong academic performance increases eligibility for merit-based awards and competitive fellowships.

Seek Guidance

Financial aid offices, program directors, and faculty advisors can provide information about funding opportunities specific to your situation.

Additional Considerations

Cost of Attendance

When comparing programs, consider total cost of attendance including tuition, fees, living expenses, and opportunity costs. Sometimes higher-ranked programs with better funding packages cost less than nominally cheaper alternatives.

Accreditation and Funding

Ensure programs maintain proper accreditation, as this affects federal aid eligibility and program quality.

Career Return on Investment

Consider expected career earnings and loan repayment obligations when making educational financial decisions. Balance educational costs with realistic salary expectations in your chosen specialization.

Resources

For comprehensive financial aid information, consult:

Visit our FAQ page for additional questions about financing your psychology education.