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It depends. Like I said, grad programs end in novel research being published. So NSF, NIH, USDA, DOE, etc are going to want to fund that research because thet get recognition at the end (whenever I presented my research I had to mske a slide at the end that recognized NSF for funding my research, and I recognized them in my acknowledgement section in my written and oral thesis). That is just how grad programs work. You get a departmental or federal research grant or a departmental teaching assistantship.I had no idea that a masters program could require funding. I always thought all the money came out of the student's pocket (probably in the form of loans.)
When a student has funding, do they also pay for their schooling?
So funding/taking out loans depends on the type of grant you get. Departmental TAs usually only get a stipend, so they have to take out loans to pay for tuition. If you get a federal grant or departmental research grant, you will get a stipend, and depending on the funding source, you are allocated a certain amount for tuition that may or may not cover all of it.
I had a federal grant with NSF LSAMP which gave me an awesome monthly stipend and paid all of my tuition, minus class-related fees (like lab fees).
If you are interested in a grad program, I encourage you to ask the grad advisor of the department you are interested in to find out what kinds of funding they offer, and look at some professors you would be interested in working with and ask if they have any grant money they could use to support you. Also do a search on federal grant programs for grad research. NSF GRFP and Ford Fellowship program are two that I had applied to.