A master's degree in the US costs about $20,513 a year in average graduate tuition and required fees, based on the latest NCES table (academic year 2021 to 2022). That splits into $12,596 at public institutions and $29,931 at private nonprofits, so a two-year program costs about double those yearly figures in tuition alone, before living costs.
The bigger news for anyone starting a master's now is how you pay for it. Since July 2026, new graduate borrowers can't take out Grad PLUS loans, and federal unsubsidized loans are capped at $20,500 a year.
I've used the NCES graduate tuition table for the cost and Federal Student Aid's own pages for the loan rules, all read in October 2026.
Average master's tuition by type of college
| Graduate tuition and required fees, 2021 to 2022 (NCES, current dollars) | Average a year |
|---|---|
| All institutions | $20,513 |
| Public | $12,596 |
| Private (all) | $28,017 |
| Private nonprofit | $29,931 |
| Private for-profit | $14,161 |
Averages hide a wide spread. NCES also reports the median: $11,766 a year at public institutions and $24,534 at private nonprofits. At the top end, the 75th percentile at private nonprofits was $45,684 a year. These are average charges for full-time students and exclude doctoral students in professional practice programs.
The spread inside each sector
| Graduate tuition and fees, 2021 to 2022 (NCES) | 25th percentile | Median | 75th percentile |
|---|---|---|---|
| Public institutions | $9,292 | $11,766 | $14,814 |
| Private nonprofit institutions | $14,520 | $24,534 | $45,684 |
The private nonprofit range is the one to watch. A quarter of programs charge less than $14,520 a year, close to the public median, while a quarter charge more than $45,684. Two private master's degrees can differ in cost by three times or more.
Working out the cost of your own program
- Find the program length. Many master's degrees take one or two years full time; part-time takes longer and costs more in total fees.
- Multiply the yearly tuition and fees by the number of years. A two-year public program at the NCES average comes to about twice $12,596.
- Add living costs, books and any lost earnings if you study full time.
- Subtract any assistantship, scholarship or employer tuition support.
- Then work out how you'll fund the gap, which is where the 2026 rules matter.
The July 2026 loan changes
This is the insight that changes the maths. The One Big Beautiful Bill Act was signed on 4 July 2025, and several federal student aid changes took effect on 1 July 2026. For a new graduate student borrower whose loans are all first disbursed on or after that date, Federal Student Aid says:
- you can receive up to $20,500 a year in Direct Unsubsidized Loans
- the total limit for graduate unsubsidized loans is $100,000 if you were never a professional student
- you can no longer receive a Direct PLUS Loan for graduate or professional students
- a lifetime maximum of $257,500 applies across undergraduate and graduate federal loans
- your school may set a lower annual limit for your program
So if your program costs more than $20,500 a year, the difference has to come from somewhere else: savings, an employer, scholarships or private lenders. There's a limited exception for students who already borrowed for their program before 1 July 2026 and haven't had a break in enrolment.
Repayment changes for new loans
The same law changed repayment too. Federal Student Aid says that if you have at least one loan first disbursed on or after 1 July 2026, you're required to repay your eligible Direct Loans under the Repayment Assistance Plan (RAP) or the Tiered Standard Plan. If you're enrolled less than full time, your annual loan limit is adjusted for your enrolment status. And if you were previously a professional student, a separate total limit of $200,000 applies, minus what you borrowed for that professional program.
Is it worth it?
That depends on the field. Some master's degrees are entry requirements, such as clinical social work, and others are nice to have. Before you sign up, compare the total cost with the pay difference in your field. If you're weighing a finance or business master's specifically, I've looked at whether a master's in finance is worth it and at whether an online MBA pays off.
My verdict
Budget on about $12,596 a year at a public institution and about $29,931 at a private nonprofit, using the NCES averages, then check the real figure for your program. The rule change is the part to plan around: with Grad PLUS gone for new borrowers and federal loans capped at $20,500 a year, a pricey private program now needs a funding plan before you enrol, not after. Public programs and employer-funded study look a lot more attractive than they did a year ago.
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Frequently asked questions
How much does a master's degree cost per year?
NCES reports average graduate tuition and required fees of $20,513 a year for 2021 to 2022: $12,596 at public institutions and $29,931 at private nonprofits, as of October 2026.
How much does a 2-year master's degree cost?
About twice the yearly figure. At the NCES averages that's two years at $12,596 at a public institution or two years at $29,931 at a private nonprofit, before living costs.
Can I still get a Grad PLUS loan in 2026?
Not as a new borrower. Federal Student Aid says new graduate borrowers whose loans are first disbursed on or after 1 July 2026 can no longer receive a Direct PLUS Loan, with a limited exception for students continuing a program they'd already borrowed for.
How much can graduate students borrow in federal loans?
From 1 July 2026, new graduate borrowers can receive up to $20,500 a year in unsubsidized loans, with a $100,000 total limit if they were never a professional student.
What repayment plans apply to new graduate loans?
Federal Student Aid says borrowers with at least one loan first disbursed on or after 1 July 2026 must repay eligible Direct Loans under the Repayment Assistance Plan or the Tiered Standard Plan.
Is there a lifetime limit on federal student loans?
Yes. Federal Student Aid describes a lifetime maximum of $257,500 across undergraduate and graduate subsidized and unsubsidized loans, including any graduate PLUS loans.
Is a master's cheaper at a public university?
On average, yes. NCES shows average graduate tuition of $12,596 at public institutions versus $29,931 at private nonprofits.
