The idea of being ‘paid to study’ is common among graduate students who receive full tuition coverage and a monthly payment to help with living expenses. Across many universities, two primary routes provide this support: the fellowship and the assistantship. Each option carries different obligations, eligibility signals, and financial mechanics. Knowing how they differ—especially how payments are taxed and how offers are made—can change which programs you apply to and how you plan your budget.
Before applying, it helps to think of funding as more than a stipend number. A comprehensive package often includes a tuition waiver, a monthly or semester stipend, and sometimes health insurance. The value of waived tuition is significant, and the presence or absence of multi-year support is a major indicator of how a department values and plans for its graduate students. Understanding the terms and reporting requirements for these benefits will prevent financial surprises down the road.
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What are fellowships and assistantships?
A fellowship is typically awarded on merit and usually carries no formal work duties. In practice, a fellowship provides a merit-based award that covers tuition and includes a living stipend so recipients can focus on coursework and research without a regular on-campus work obligation. Fellowships may be granted by departments, universities, or external agencies and are often competitive because they signal outstanding academic or research potential.
How assistantships function and the common types
An assistantship is effectively a part-time campus job, commonly requiring about 10–20 hours per week. Assistantships typically come in three flavors: teaching assistantships (TAs) that support undergraduate instruction, research assistantships (RAs) that fund work on faculty research projects, and graduate or administrative assistantships (GAs) that help with department operations. In exchange, you usually receive a tuition waiver plus a stipend. Importantly, income that covers the portion of tuition and stipend from these roles prevents that amount from having to be borrowed as student loans for the covered period.
How funding is awarded and degree-level differences
Many doctoral programs automatically consider applicants for funding when reviewing admission materials; your personal statement, writing samples, and letters often double as funding materials. Some high-profile fellowships, however, require separate applications—examples include the NSF Graduate Research Fellowship and other national awards. For applicants, proactive communication matters: ask each program, ‘What funding is available and how do I apply?’ and ‘What share of students receive full support?’ These two queries provide a clear signal about departmental expectations.
Master’s versus PhD: what to expect
PhD programs are far more likely to include full, multi-year funding packages that cover tuition, a living stipend, and often health benefits. In many research fields and at large universities, funding for doctoral students is standard. By contrast, fully funded master’s programs are less common—especially in professional degrees—though funded opportunities do exist in STEM fields and at large research institutions. Some master’s students receive partial assistantships covering tuition with smaller stipends, so reviewing the whole offer is essential.
Money, taxes, and practical steps
Tax treatment and reporting
Both fellowship and assistantship income are considered taxable income, but they are handled differently. Assistantship pay is treated like wages: institutions usually withhold taxes and issue a W-2. Fellowship payments, in many cases, are disbursed without tax withholding and without a W-2; recipients must report that income and may need to make quarterly estimated tax payments to avoid penalties. Tuition benefits linked to teaching or research are often excluded from taxable income under Section 117(d), but the rules can be nuanced. Consulting your graduate school office and a tax professional is prudent in your first year to confirm how your package will be reported.
Practical next steps for applicants
When preparing applications, do these things: ask programs directly about funding and application mechanics; apply early to external fellowships such as the NSF GRFP or foundation awards that have deadlines before or alongside admissions; reach out to faculty whose research aligns with yours to explore RA opportunities; and compare offers holistically, factoring in tuition coverage, stipend size, health insurance, and fee waivers. Plan for taxes from day one if you expect fellowship income—set aside a portion of each disbursement or arrange quarterly payments to avoid an unexpected bill in April.