The budget app for grad school finances

Track the basics first. After federal income tax (about 10-12% effective at that income), state tax (varies), and any subsidized health insurance premium (often $80-$300/month for grad students), take-home on $32,000 is roughly $26,000-$28,000 — about $2,200/month. Rent in a high-cost city often runs $1,200-$1,800 for a shared apartment, leaving $400-$1,000 for everything else. Living with roommates is the single biggest variable. Cash Compass shows the actual category breakdown so the housing/food/transportation tradeoff stays visible. Many programs offer subsidized housing in the first year — worth pursuing aggressively.

NSF GRFP, NIH F31, NDSEG, and many private fellowships report income on Form 1098-T or just on a year-end statement without FICA or federal withholding. You owe federal income tax on the taxable portion (usually the stipend portion, not the tuition portion). The IRS expects quarterly estimated payments via Form 1040-ES if you expect to owe over $1,000 — for most fellowship students that means setting aside about 10-15% of each deposit and paying quarterly on April 15, June 15, September 15, and January 15. The 2024 IRS Topic 421 outlines the taxability rules. State tax varies. Cash Compass tracks a Savings: Taxes category against each fellowship deposit; the actual money sits in a separate savings account until quarterly payment is due. Some grad schools offer tax workshops in November and February — worth attending.

Tag each income source separately — Stipend, TA Pay, RA Pay, Summer Research, Conference Reimbursement. Some are W-2 wages with FICA withheld; others are fellowships without withholding. The mix affects your tax planning. The 2024 NSF Survey of Earned Doctorates showed about 65% of PhD students held some form of teaching or research assistantship alongside their stipend. If you receive both a fellowship (no FICA) and TA pay (with FICA), the total taxable income matters for bracket purposes even though the withholding is split. Cash Compass's per-source income tagging gives you a clear total. CSV export at year-end separates the income streams for tax prep. Many grad programs require summer-funding applications by January-February — track the Conference and Summer Research budget separately so you know whether internal funding is enough or you need to apply externally.

Usually not, if you have federal undergrad loans that can be deferred during enrollment. Most federal loans go into automatic deferment during at-least-half-time enrollment, and many subsidized loans do not accrue interest during deferment. For unsubsidized loans that accrue interest, paying the interest as it accrues (a small monthly amount) prevents capitalization at graduation. Private loans usually do not defer cleanly — those need active payment. Refinancing private loans during grad school can sometimes lower rates, but you lose federal protections if you refinance federal loans privately. The honest answer for most grad students: build a $1,000 starter emergency fund first, then pay accrued interest on unsubsidized loans monthly, then focus on graduating without adding new loans. Aggressive principal payoff comes after the first post-grad job.