Is it worth incurring more debt?
It has long been surmised that education is the key to a better life, better salary, and a fulfilling career path, but it isn’t as simple as that. In 2017, students graduated with $57,600 in graduate school debt, and a quarter of all students graduated with over $100,000 in graduate school debt. While for some, the debt is worth it, and they quickly find jobs that allow them to pay back their debt, many students with master’s degrees see that the return on investment just isn’t there, or that their graduate degree isn’t as applicable as they had thought. Before you take on graduate school debt, it is essential to figure out the return on your investment, and precisely what you’ll be doing with your degree.
Lack of Direction
According to International Business Times, many graduate students find themselves in unimaginable debt with no way to pay it off, but the problem isn’t graduate school and the loans they incur, exactly. According to experts, students who haven’t thought strategically about their plans post-graduation fight the biggest uphill battle.
Graduate school is different than an undergraduate degree program—you have to have a set career path in mind, and take courses that apply to that path. With a graduate degree you have to decide if your career path will benefit from graduate studies, and if the salary attached to the jobs in the field will allow you to pay off the debt you incur while in school.
Figuring out Return on Investment
According to experts at Georgetown, individuals holding a bachelor’s degree and three years of experience in their field out-earn workers who are freshly out of graduate school. In short, when looking at graduate degrees, you need to figure out whether there is a need for a graduate degree in your field, and whether it will boost your earning potential and job prospects.
When you are looking at jobs outside of law, medicine, and academia, a master’s degree won’t automatically boost your resume and make you look better than other applicants. In fact, in some fields it can even hurt, especially if you are applying for entry level or lower management level positions.
To calculate the return on investment, you’ll need to look at field growth and whether or not a graduate degree will enhance your salary and job prospects. For example, the tech field is expected to experience high growth over the next decade, and graduate and Ph.D. applicants are highly desirable in the field. Starting salaries in the field also tend to offset the cost of graduate school.
Consider Alternative Routes to Graduate School
When looking at fields you are interested in, you’ll need to be honest with yourself about your prospects, and whether or not there are alternative routes to your degree. For example, people interested in advertising often find that a portfolio school is not the only means of getting a job in the field. Working at a lower level within a company, particularly one that offers tuition reimbursement, may be an excellent way to work your way through graduate school without incurring debt. Those interested in MBAs often find that larger companies and even start-ups are willing to offer tuition reimbursement for employees willing to stay with the company post-graduation.
Experts suggest doing as much research as possible, and considering all possible routes before taking on debt at the graduate level. All too often, graduate students find that they are swimming in $100,000 in debt, but just don’t have the salary to match their investment.
Make sure your decision is an informed one before you sign on the dotted line, and take on thousands of dollars in additional student loans. If you look at the field you are interested in, calculate your return on investment, and investigate growth in your ideal field, you can make a decision that is both financially responsible and well-informed.
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