Financing Your MTS Degree: How to Pay for a Theology Master’s Degree

A Master of Theological Studies (MTS) degree program offers a profound, multidisciplinary exploration of the human condition, blending philosophy, history, anthropology, language, and more. But is it worth pursuing? And can you afford it?

The answer to the first question largely depends on your personal and professional goals. You may be seeking a deeper understanding of faith, exploring theological questions, or preparing for a career in ministry. Earning an MTS degree builds the skills to examine faith from a critical and transformative perspective, and it can also open doors to careers in counseling, social work, law, healthcare, law enforcement, and more.

As for the second question — this blog post offers practical ways to fund your MTS education and advice for navigating the financial options that can help make this transformative academic journey more accessible.

Average Cost of a Master of Theological Studies Degree

Much like any master’s degree program, prospective MTS students can expect a wide range of tuition costs. Tuition itself is typically between $15,000 and $50,000 for the entire program, depending on factors such as the institution, program length, and delivery format (online vs. on-campus).

At the higher end of the spectrum, private theological schools and divinity schools at major universities may charge $800 to $1,200 per credit hour, resulting in total tuition in the $30,000 to $50,000 range. With higher budgets, these schools often offer in-depth, specialized programs with extensive faculty and academic resources (though this is not exclusive to larger, private schools).

More affordable options may be found at accredited seminaries and graduate theology programs that charge between $500 and $900 per credit hour. In these cases, the total cost of the program typically falls in the range of $25,000 to $40,000, which is still a significant investment.

However, it’s important to note that tuition costs often do not cover additional expenses such as:

• Books and course materials: These can add several hundred dollars per semester.
• Technology fees: Some programs, particularly those offered online, may require students to invest in specific software or hardware, adding to the overall cost.
• Travel/immersion experiences: Some MTS programs incorporate study abroad or fieldwork components, which may add thousands of dollars to the final bill.
• Spiritual formation, internships, and supervised field education: Many programs include experiential components, which could carry extra costs. However, some schools subsidize these costs or include them in the program fees.

For example, USD’s online MTS–Franciscan Theology program is priced at $835 per unit, with a total cost of around $30,060. This is considered a competitively priced option, particularly when compared to other, similar private institutions, and is below the national average for MTS programs. Prospective students may also take advantage of various financial aid options, including employer partnership programs and interest-free payment plans to help manage costs.

Types of Scholarships for Theology and MTS Students

Master of Theological Studies students at any school have access to a variety of scholarships designed to make theological education more affordable. These scholarships fall into several categories, each serving different needs and goals:

Standard scholarships

• Merit-based scholarships: Awarded to students based on academic excellence, leadership experience, or other notable achievements. These scholarships recognize exceptional students and can significantly reduce the financial burden of tuition.
• Need-based scholarships: Intended for students who demonstrate financial need. These awards help to make theological education more accessible to those who might not otherwise be able to afford it.
• Academic paper or essay contest awards: Many theology programs offer scholarships for students who submit compelling essays or research papers on specific theological topics. These can be a great way to earn financial support while demonstrating your capacity for academic engagement.

Faith-based scholarships

• Mission- or ministry-based scholarships: These scholarships support students who are pursuing a career in ministry or mission work. Some scholarships may be awarded based on the student’s commitment to service or the specific ministry they plan to enter.
• Denominational/charism-based scholarships: These scholarships support students who are pursuing graduate theological education within a specific faith tradition or charism. For example, students seeking to study within the Franciscan Catholic tradition or another religious order may be eligible for related scholarships.

Demographic scholarships

• Women in ministry scholarships: These scholarships are intended to encourage and support women pursuing careers in ministry, recognizing the need for more female voices in theological education and leadership.
• Diversity and inclusion scholarships: By supporting students from underrepresented groups in theological education, these scholarships seek to increase diversity in the field and ensure that all perspectives are included in the theological conversation.

Other scholarships

• Employer-sponsored scholarships or tuition assistance: Students employed by churches, Catholic schools, dioceses, or nonprofit ministries may be eligible for employer-sponsored scholarships or tuition assistance, with the goal of helping them advance their career in the field. Employees may need to show how the degree aligns with their job duties or ministry goals to qualify for reimbursement, as well as remain employed for a certain period after receiving tuition assistance.

• Regional or community-based scholarships: Various local religious organizations, dioceses, foundations, and interfaith groups offer scholarships to students based in specific geographic regions or communities. These scholarships can be a great way to receive funding while also engaging with your local religious and spiritual community.

Grants, Fellowships, and Faith-Based Financial Aid

There are several other financial aid options that can help alleviate the cost of tuition and living expenses for MTS students. This wealth of funding sources makes theological education widely accessible to students of all backgrounds and economic situations.

Grants

Grants are typically awarded based on financial need and do not require repayment. They can help cover the costs of tuition, fees, and living expenses for students who demonstrate significant financial need.

While graduate theology students may not qualify for federal Pell Grants, many schools and private foundations offer specialized grant programs for students entering ministry or related fields. These include church-affiliated grant programs and foundations who support students in certain theological disciplines or those planning to work in under-served or mission-driven fields.

Fellowships

Fellowships are typically merit-based awards that may provide full or partial funding for graduate students. In exchange for the funding, students may be expected to engage in academic research, service, or teaching. For example, ministry-based fellowships may require students to engage in service or teach in religious or educational settings.

Many fellowships are sponsored by theological associations or institutions and offer stipends for research, travel to conferences, or funding for community service initiatives. These opportunities provide students with valuable academic and professional experiences while helping them finance their education.

Faith-based financial aid

Many churches, denominations, and religious foundations offer financial aid to graduate students who are deeply active in their faith communities or committed to future service in ministry or lay leadership. Simply search your faith or denomination and “scholarships,” and there will likely be many options available.

Federal Student Loans and Repayment Considerations

Federal student loans are a very common way to finance graduate education. However, it’s important to remember that, unlike grants or scholarships, loans must be repaid with interest. The U.S. Department of Education offers federal loans with certain protections and flexible repayment terms, which makes them an attractive option compared to private loans.

The two most common types of federal loans for graduate students are:

• Direct unsubsidized loans: Unlike need-based loans, unsubsidized loans are available to all graduate students regardless of financial need. Graduate students can typically borrow up to $20,500 per year through direct unsubsidized loans. Interest begins accruing as the loan is disbursed, even while you’re still in school, which means that your loan balance will increase over time if you don’t pay the interest while in school.
• Graduate PLUS loans: Graduate PLUS loans can be used to cover the entire cost of attendance, including tuition, fees, and living expenses. These loans generally have higher interest rates than unsubsidized loans, but they still come with the benefits of federal loan protections, including flexible repayment options. Unlike other federal loans, Graduate PLUS loans require a credit check, but students with low credit may still be eligible if they meet certain conditions.

Before borrowing any amount of money to pay for a theological education, it’s important to keep a few things in mind:

• Interest rates and accrual: Interest begins accruing immediately on both unsubsidized and Graduate PLUS loans. It’s essential to understand how much the interest will add to your total repayment amount over the life of the loan. Paying the interest while you’re still in school can help minimize the long-term cost.
• Loan limits: Federal loans have annual borrowing limits. For unsubsidized loans, this is typically $20,500 per year for graduate students. You may need to combine loans with other forms of financial aid, such as scholarships, grants, or private loans, to cover the full cost of your education.
• Repayment plans: Federal loans offer a variety of repayment plans, including income-driven repayment (IDR) plans. IDR plans adjust your monthly payment based on your income and family size, helping make payments more manageable during and after school.
• Public service loan forgiveness (PSLF): If you plan to work in a qualifying nonprofit or faith-based organization after graduation, you may be eligible for loan forgiveness. Under the PSLF program, you can have your remaining loan balance forgiven after making 120 qualifying monthly payments while working full-time for a qualifying employer.
• Long-term financial impact: Before taking out loans, you need to consider how monthly loan payments will fit into your post-graduation budget. Loans can be a helpful way to fund your education, but it’s crucial to understand the financial burden they may place on you after graduation.
• Borrow only what you need: While federal loans can cover a significant portion of your educational expenses, borrowing more than necessary can lead to unnecessary debt. Be mindful of your financial needs, and borrow only what is essential to minimize long-term debt.

Budgeting Tips for Pursuing an MTS

Earning a Master of Theological Studies can be a significant financial investment, but with the right strategies, you can manage your expenses and minimize financial stress. Here are some practical budgeting tips to help you navigate the cost of your MTS program:

1. Estimate the full cost of attendance

Before applying, consider not just tuition but also costs such as:

• Books and other study materials
• Living expenses
• Internet service and other utilities
• Printing and copying fees for assignments
• Travel expenses for residencies or field experiences (if applicable)
• Spiritual retreats or other required components of your program

2. Create a detailed budget plan

Factoring in the expenses above will give you a more accurate picture of your total financial commitment. Create a clear and comprehensive budget that accounts for semester-to-semester variability, such as fluctuating costs for travel, housing, and study materials.

3. Minimize unnecessary expenses

Adopting a minimalist approach can significantly reduce costs. Cut back on non-essential purchases and focus on what you truly need. You can save money by eliminating impulse buys and prioritizing necessities.

4. Use student discounts

Many retailers, restaurants, and service providers offer student discounts. Take advantage of these savings for everything from textbooks to software, transportation, and even entertainment. Always ask about student discounts, as they can add up over time.

5. Work part-time or freelance

A flexible part-time job or freelance work can provide additional income to help cover living costs or tuition. Many students pursue jobs related to their field of study, such as tutoring, campus ministry roles, or freelance writing. Look for work that complements your academic schedule and, even better, aligns with your career goals.

6. Explore monthly payment plans

Monthly payment plans can help spread out the cost of tuition over several months instead of paying a lump sum at the start of each semester. Many universities, including the Franciscan School of Theology (FST) at USD, offer interest-free payment plans to make tuition more manageable.

7. Build an emergency fund

It’s always wise to set aside a small amount of savings for unexpected expenses. Having an emergency fund can help you navigate financial challenges without relying on loans or credit cards. Aim for at least 3–6 months’ worth of living expenses as a buffer.

8. Use financial aid strategically

Start by utilizing free aid first, such as scholarships and grants, before taking out loans. Keep detailed records of all financial aid awarded to avoid borrowing more than necessary, and regularly review your financial situation to ensure you’re staying within your budget.

9. Seek local sponsorship

Reach out to your parish, diocese, or community for potential financial support. Some religious organizations offer scholarships, grants, or sponsorships to students pursuing theological studies. These funds can help reduce your out-of-pocket costs.

10. Share resources

Borrow books, share study guides, or exchange notes with other students to help reduce the cost of your education. Many students also share access to more expensive resources, such as software or academic journals, to minimize individual costs.

How to Combine Funding Sources Effectively

By utilizing a variety of aid options, you can reduce the burden of debt and make your education more affordable. Here’s how to combine funding sources to pay for your MTS degree:

At the Franciscan School of Theology, we are committed to making graduate education accessible and affordable for all students. By educating applicants on a variety of financial aid options, we will work to help you fund your online MTS-FT degree. Financial aid is available for eligible students, so don’t hesitate to reach out and explore the opportunities that can help you achieve your educational and professional goals.

Frequently Asked Questions