Very general (and dumb) questions on getting by on a grad student's pay

[Golden Monkey]

Sorry for the dumb questions, but people here have been really helpful and tolerant of my stupid questions, so I figured I'd ask one more.

I found this database of typical stipends:

http://chronicle.com/stats/stipends/

This made me realize that, factoring in the health insurance and cost of living, the offer I received was pretty typical compared to other universities. It also made me realize that thousands of others are somehow making this work, so there must be something I'm missing. Is the usual procedure to:

• Dip into saving/take out loans for the first year to get by, then apply for outside funding?
• Take on a second job (when allowed?)
• Something I don't know about?

I guess one of the advantages of being so much older than the typical grad student is that I have money put away, so I could probably float myself for a while, but I was kind of hoping not to do that. For those of you already in funded programs, how did you handle this? And for those of you being baffled by the same question, what's your plan?

[LJK]

I am currently living on less that $19,000 a year and have even managed to save up ~$4000 over the last 4 months for my move and my paycheck gap as I transition to a phd program. Whether this is possible really depends on cost of living. I currently live in a low cost-of-living area and live with roommates in a very nice house. My rent ends up being ~$450 a month with an extra $100 put into our general utilities account most months - so housing for me is about $6,500 (overestimate). I own my car without car payments at this point so am just paying car insurance ~$120 a month so thats an additional $1500 (again over estimation). I probably average $50 in gas a month so thats $600 (I live walking distance to campus). I probably average $200 in groceries a month, ~$2,400. So with these essentials I am up to $11,000. Being a 20-something I am able to get away with staying on my parent's family plan for my phone (I'm not upgrading to a smartphone b/c I would have to pay), and until I'm 26 I can stay on my parents insurance, so I do have some help. But I have about $8000 here that is 'unclaimed' by the essentials allowing me to eat out semi-regularly, to take small vacations, to buy clothes and home goods on occasion - if I wanted to sacrifice a bit of that or not be saving I could probably afford the smart phone.

Depending on location, it is possible. Some sacrifices might need to be made - live in a less nice apartment than you are used to, get a roommate to afford the nicer place, etc. Coming straight from undergrad, $19,000 is the most I have ever made and it is easy to continue my habits of not spending that much on non-essentials. I realize for you, coming from the opposite where you are used to making much more than that and being able to spend money on non-essentials it will be a much harder transition. Advice from the 'get out of debt' segments on shows like Today and Good Morning America I use as stay out of debt advice. I pay close attention to my budget and what I spend a few dollars on here, a few dollars on there. A Starbucks coffee or tea is simply not worth the money on a grad student's salary - invest in a quality coffee maker at home and even at the office if that is a vice of yours. Bag lunch regularly instead of buying. I don't know your spending habits at all, but I've noticed that we collectively spend a lot of money on convenience - not having to make lunch the night before, not needing to keep a coffee bean supply at home, taking the first good apartment rather than doing the legwork to find an equally good and cheaper one, stopping at the gas station along our fastest route and not driving the extra half a mile to save, etc. Living on the cheap is a mindset, $5 and $10 purchases have to be debated rather than thought of as change - even $2 purchases if the budget is tight enough.

Anyway, that's how I get by - hope that helps.

Edited March 13, 2011 by LJK

[breakfast]

You are just going to have to adjust to a much lower quality of living than what you might be used to. At my institution, we are only paid over the academic year, so it is up to you to find work or a fellowship over the summer, but you are almost certainly not going to be allowed to take a second job during the academic year. Even if you were allowed to, you would not have any time to do your own grad. work AND do your TA duties. I also don't know many people that supplement their income with loans. This is probably a bad idea.

If you are moving to a city with a high COL, you are probably going to have to get a roommate or two. Not really any way around it.

And to second what the person above said: learn to cook and eat out less. Take the bus, walk, or bike whenever you can. Don't get cable TV - not worth it and you probably won't have a lot of time to watch it. Buy your books used, and if they are books you don't think you will be using again, try to find them in your uni. library or inter-library loan them.

Edited March 13, 2011 by breakfast

[Golden Monkey]

Thanks, this is very helpful, especially with the "don't take any additional work during the school year" part, which was one of the questions I had. The area actually has a pretty low cost of living. I'm not so worried about working during the summers, as I am finding work during the summers in this wretched economy.

My standard of living is already pretty low. I'm currently a university employee, where the pay is terrible, so I'm kind of used to doing without, have not owned a car in 4 years, haven't had TV in 10 years, eat out about once every three months (you can just call me "Mister Excitement" ) which is how I've managed to put away money in the first place. A lot of us working stiffs have been in "survival mode" since the economy went south in 2005-2006 anyway, so going from one level of spartan living to another level of spartan living probably won't be that big of a deal.

Still, even with a considerable safety cushion, this makes me kinda nervous.

[runonsentence]

I went from an albeit low-paying but "secure" full-time-with-benefits job to graduate school two years ago. And even though I was only out in the working world for two years, I was also terrified.

If it makes you feel any better, I think that staring into the plunge is worse than actually living day-to-day in the plunge. I was terrified at the idea of living on a graduate stipend while I was still working, but apart from worries before big purchases and a frugal mindset, it hasn't been hugely detrimental to my quality of life.

If you manage things sensibly as previously described (I definitely practice the "Is this $3 purchase worth it?" mindset), and have that cushion to fall back on for worst-case scenarios, I think you're going to be just fine. I live on $11k a year with a car payment, and while my parents help out with my insurance and phone, I'm able to make it just fine.

[Golden Monkey]

So no one applied for grants/fellowships after the first year?

[Nurse Wretched]

I have full funding for my program, but am not allowed to receive competitive outside funding, either intra- or extramural. I have two kids and a wife who makes the usual medium-sized bucks as academic staff. We're allowed ten hours of outside employment a week. Because I'm a nurse practitioner, part time work is possible and fairly well-paid, but it's scary to lose 60% of my income. The things that comfort me are that my taxes will essentially disappear and that I can take out small loans to make it work.

I worked through my masters program, so 36 hours of clinic/call, 24 hours of work and 12-15 hours of class were routine. The idea of only working 10 hours a week is so ridiculously luxurious that the drop in income is less terrifying.

It can be done. I know a lot of people who do it, with and without kids. Nothing seems possible until you have to do it, you know?

[Lustforlife]

So no one applied for grants/fellowships after the first year?

It depends on your field, of course, but there just aren't that many external fellowships. In the humanities, Ford and Javits are the ones that come to mind and both are very competitive. Most grad students I know just get by on the stipend during the school year, and then try to pick up work to cover bills during the summer. It is doable. As others have stated, however, you have to be frugal. If you are worried about finances, are there current graduate students in your prospective programs who you can ask about money issues?

[Golden Monkey]

It depends on your field, of course, but there just aren't that many external fellowships. In the humanities, Ford and Javits are the ones that come to mind and both are very competitive. Most grad students I know just get by on the stipend during the school year, and then try to pick up work to cover bills during the summer. It is doable. As others have stated, however, you have to be frugal. If you are worried about finances, are there current graduate students in your prospective programs who you can ask about money issues?

Yes, I'm headed out there next week and will be doing exactly that. I'm guessing that in the technology fields, it might be a little easier to find (?)

[runonsentence]

It depends on your field, of course, but there just aren't that many external fellowships. In the humanities, Ford and Javits are the ones that come to mind and both are very competitive. Most grad students I know just get by on the stipend during the school year, and then try to pick up work to cover bills during the summer. It is doable. As others have stated, however, you have to be frugal. If you are worried about finances, are there current graduate students in your prospective programs who you can ask about money issues?

Also, I'm a master's student—it's not possible to apply for many fellowships unless you're a doctoral student.

Most people in my department depend on external (or competitive internal) fellowships as a back-up plan for fifth year funding, since we're only guaranteed four years now.

[Lustforlife]

Yes, I'm headed out there next week and will be doing exactly that. I'm guessing that in the technology fields, it might be a little easier to find (?)

I have no direct knowledge about the tech field, but I still don't think that there are all that many external grants. The NSF is the only one that comes to mind. It is an extremely competitive grant, however, and one can't plan on getting it. If you will eventually be joining a lab, you will probably pick up some extra funding. My suggestion would be to make your decision assuming that the level of funding you have been guaranteed is the level of funding that you will continue to receive throughout your career as a grad student. That way, you will be happy if you find external funding, but you won't be devastated if the external funding fails to come through. I would only change this assumption if you get information from other grad students in that department at that university that indicates that is common for people to get a bump in their stipends after the first year (either from joining a lab or an NSF training grant or something like that). Good luck.

[rising_star]

I survive just fine. I just don't have a lot of extras. I stubbornly refuse to take out loans, with the exception of the ones I used to buy my car and move across the country. I don't have a lot of savings to live on, though I do have a mother that helps me out from time to time (and keeps my cell phone on her family plan, making it free for me!).

FWIW, your ability to have an outside job is really program-specific. I was able to at my MA university and it wasn't a problem. I didn't do anything fancy though, just working in a box office and making a bit above minimum wage.

There are two things I do that save a bunch of money. 1) I don't hang out in coffee shops like many of the grad students do. It helps that I don't drink coffee but, that's at least $2/day I'm saving over my peers. 2) I bring my lunch every day.

[TheDude]

Maybe I am crazy for saying this or following through with this, but why don't you take out all your Subsidized Stafford loans and just bank them?

If you have to touch them, cool at least something is there. If you don't need them you pay them back.

[chaospaladin]

When you get the TA / RA stipend and fellowships, do you have to pay tax on those? Let's say you have left over money from those financial sources, are you able to use the extra money to pay off your undergraduate student loan debt?

[LJK]

When you get the TA / RA stipend and fellowships, do you have to pay tax on those? Let's say you have left over money from those financial sources, are you able to use the extra money to pay off your undergraduate student loan debt?

Normal TA/RA & fellowship money is taxable. There are certain funds that come directly from federal agencies that is not taxable income, but these are by far the exception and if you get put on such a fellowship your school will let you know. The stipend is your pay - there is no restriction that I know of on how you spend it just like any other job, so paying down loans is more than acceptable.

[Golden Monkey]

Normal TA/RA & fellowship money is taxable. There are certain funds that come directly from federal agencies that is not taxable income, but these are by far the exception and if you get put on such a fellowship your school will let you know. The stipend is your pay - there is no restriction that I know of on how you spend it just like any other job, so paying down loans is more than acceptable.

The positive side of this is that we'll be in a very low tax bracket.

[runonsentence]

The positive side of this is that we'll be in a very low tax bracket.

Yep—I get a LOT of my taxes back, come April.

Also, echoing what was said earlier: my boyfriend and I make it a habit to make our lunch just about every morning (I'd say I only buy lunch once ever week-and-a-half or two weeks) and it saves a ton. Really, just cooking in general saves a ton. And you'd be surprised at how easy it is to make time for it once you're in the habit. Sometimes it can take an hour out of your day, but it's a nice way to unwind from starin' at them books all day.