Understanding The Real Cost of Graduate School

Part 1 of the Cost of Graduate School Guide

By: Dr. Deborah Tollefsen, Vice Provost & Dean of the UofM Graduate School

When considering graduate school, it’s easy to be drawn in by a program’s reputation, faculty, or curriculum. But to make a smart and sustainable decision, you also need to understand the full financial picture—especially with potential changes in federal financial aid on the horizon.

In Part 1 of our guide, we break down the foundational tuition structures and standard university fees you’ll encounter when exploring graduate programs. Whether you're comparing per credit hour vs. flat-rate tuition or deciphering service fees, this guide will help you make clear, informed comparisons across institutions.

Per Credit Hour Cost vs. Flat Tuition Rate

• Per Credit Hour Cost means you pay tuition based on the number of credit hours you take. For example, if tuition is $650 per credit hour and you take a 3-credit course, that course will cost $1,950. Multiply by the total credit hours required to complete the degree to estimate your base tuition.
• Flat Tuition Rate applies when a program charges a set amount per semester, regardless of how many courses or credit hours you take (up to a certain limit). This is common in cohort-based or professional programs and may benefit full-time students, but it can be more expensive for those attending part-time.

Key tip: Always compare the total program cost, not just the rate structure. Flat rate programs can seem more expensive per semester but may accelerate time to completion.  At the University of Memphis, we charge tuition per credit hour. Our out-of-state tuition rate per credit hour ($880) is one of the lowest across TN and our peers. 

Tuition Caps

Some universities implement tuition caps for some or all of their students, which limit how much a student is charged beyond a certain number of credit hours per semester. For example, at the University of Memphis we cap our graduate tuition after 10 credit hours for in-state students. All credit hours above 10 are offered at no additional tuition charge for residents of TN (but students will be charged fees if applicable).

This can be a significant cost-saving opportunity for students planning to take a heavier course load each term or complete their program more quickly.
 
Key tip: Ask if the university has a tuition cap or maximum charge per semester. Taking advantage of this structure can lower the total cost of your degree.

University Service Fees 

In addition to tuition, universities typically charge mandatory fees that support campus services such as:

 
These fees can add several hundred to a few thousand dollars per year, and they’re often charged whether you use the services or not. They may be assessed per semester or per credit hour.

Key tip: Review the university’s tuition and fee schedule to understand which fees are required and whether they differ for part-time, full-time, or online students.

Online vs. On-Campus Tuition Rates

In fact, some universities charge a separate online tuition rate that may be higher—or lower—than their on-campus equivalent.

• Online rates may exclude certain campus-based fees but may include separate distance education fees or online technology fees.
• On-campus rates usually include broader access to campus services but also more required fees.

Key tip: If flexibility and cost are both priorities, compare not just tuition but also how services, support, and fees differ between delivery formats.

Where do I find information on tuition and fees?

If you are looking at graduate program pages on a website, often they won't specify the exact tuition and fees required for the program. This is because at most universities, tuition and fees are billed through the bursar or university business services and this unit maintains tuition and fee charts. Because tuition and fees can change yearly, departments often do not specify these fees on their website and even those that provide a detailed breakdown of fees will do so in terms of estimates and link to a central office that bills and collects tuition.

Key tip: Don't rely on AI search to produce accurate tuition and fee costs. Search for the university bursar and business office and then tuition and fee charts.

Coming up in Part 2:

We’ll explore how residency status, program-specific costs, and lesser-known fees can shape your total graduate school expenses—and what to ask before committing

Resource Tip: Explore the Council of Graduate Schools’ GradSense tool to help calculate debt-to-earnings ratios and ROI for your degree.
https://gradsense.org