What Is the Value of Graduate School?

Getting a graduate degree may seem like a good way to advance your career and develop new abilities, but prospective students must first decide whether it is financially feasible to attend graduate school.

The cost of a bachelor’s degree has received more federal and parliamentary attention lately. But the entire cost of tuition for some two-year, full-time graduate degrees can be above $100,000, and doctoral or professional programs are frequently significantly more expensive.

Many students take on debt to pay for their education and living expenses. According to a 2020 Center for American Progress research on graduate school debt, loans given to graduate students make up 40% of federal student loans given out each year, despite the fact that graduate students only make up 15% of the total of students enrolled in higher education.

Consequently, prospective students should think about their long-term employment ambitions among other things before enrolling in a graduate program and taking out loans to pay for it.

Jay Mixter, senior consultant at the admissions consulting firm Admit Advantage, says that when he meets someone who is interested in graduate school, his first inquiry is always, “Why?” “They have a good basis for possibly wanting to attend graduate school if there is a compelling narrative there, if they have thought that through, and if grad school is a means of either accelerating their ability to get there or allowing them access to the kind of career path that would get them there.”

Compare the debt from graduate school with the potential earnings.

The average salary for those with graduate degrees is higher than that of those with merely bachelor’s degrees.

In 2021, the U.S. Bureau of Labor Statistics reported that the median weekly wage for full-time, year-round employees with bachelor’s degrees was $1,334. For individuals with a master’s degree and a PhD degree, respectively, the median weekly salary for full-time workers increased to $1,574 and $1,909, respectively.

To assess the value of an advanced degree, experts believe it is difficult because of the vast variety of expenses and debt by graduate program.

For entry-level roles or higher positions within an organization, several industries demand a graduate degree. However, “even in cases where graduate school is a requirement for a particular career, it may not provide you with the financial return on investment you hope,” Kendra Millay, academic advising team leader and law school admissions counselor at IvyWise, an education consulting firm, wrote in an email.

According to Millay, it’s critical to conduct study into different professions in order to gauge how competitive the labor market is and to ascertain the kind of pay you can anticipate in the future. “From there, a student needs to do some soul-searching and make that very personal decision for themselves; you work for a long time, so you should have the career that makes you happy.”

The president and chief operating officer of Signet Education, a Massachusetts-based college admissions and tutoring business, Sheila Akbar, argues that in order to stand out in the job market, it takes more than just possessing the extra certification. In addition to the degree itself, the learned abilities are crucial.

There is a ton of very excellent information available from former academics who are attempting to demonstrate to readers how those academic talents are immediately useful and transferable to an industry or business situation, according to the author. “Since a business person won’t be impressed by you simply stating that you have published X number of papers. Saying instead that you’ve carried out a qualitative interview, drawn insights from it, and developed a really intricate model to comprehend it will.

A striking contrast can be seen in graduate borrowing trends: According to the CAP report’s study of federal loans, graduate student loan debt increased by $2.3 billion between 2010-2011 and 2017-2018, despite a $15 billion drop in undergraduate borrowing during the same time period.

Additionally, prospective graduate students should be aware that loan amounts can differ depending on the type of institution. According to the most recent information available from the National Center for Education Statistics, in 2015-2016, student loan borrowers who graduated with a master’s degree had an average debt of $54,500 from attending public schools versus a debt of $71,900 for those who attended private nonprofit institutions.

According to the NCES, those who attended private nonprofit institutions and earned a research PhD owed $94,100 on average each, compared to $92,200 for those who attended public universities.

Graduates holding professional doctorate degrees saw a significant increase in their student loan debt, which crossed the six figure mark in both categories. In comparison to private nonprofit institutions, public schools’ average debt at graduation was $142,600, while debt at graduation for students at private schools was $221,800.

Law, medicine, and dentistry are some professions that grant doctorates. For some students, the debt and time invested in graduate school may be worth the price because these professions often provide the greatest earnings.

These NCES averages do not include non-loan-taking students, but they do include any undergraduate loans that borrowers may have in addition to their graduate debt.

While a student is enrolled in graduate school, undergraduate student loans are put on hold. The principal can be reduced by continuing to pay while in school, according to experts.

Think about your options for job training and financial aid

The experts agree that graduate study can still be financially advantageous despite the danger of borrowing to pay for it. However, before deciding to enroll in a graduate program, students should think about the financial aid that is available to them.

Students can make use of academic fellowships, scholarships, grants, and cost-relieving financial aid to reduce expenses and prevent debt. Some master’s and doctorate programs are entirely supported, which means that students are given a stipend and a tuition waiver covering 100% of their costs.

Work at a university that offers tuition reimbursement is another strategy to reduce the cost of graduate school. Another option is to work as a resident assistant, which will pay for housing costs.