Buzz
Returning to school for a master's degree during tough economic times can seem logical—especially if you're already underemployed and looking to enhance your skills. However, there are challenges to consider: remote learning can often feel unsatisfying, and graduate degrees continue to be costly. It's essential to carefully evaluate the financial aspect before deciding to enroll.
Reasons to pursue a master's degree
While advancing your education isn't solely about boosting your income, it's important to acknowledge the potential financial gains. On average, individuals with a master’s degree earn more, with a median weekly salary of $1,434, compared to $1,198 for those with just a bachelor’s degree, according to the U.S. Bureau of Labor.
A master's degree can boost your current salary
Certain jobs offer automatic salary increases for employees who earn a graduate degree (teaching is a prime example), making them more secure investments. However, not all degrees guarantee a financial return. For instance, a master’s in fine arts has lower demand in the job market and typically leads to an additional $10,000 in median wages compared to a bachelor's degree.
On the other hand, a master’s in Business or STEM fields opens up more job opportunities and higher salaries. For example, an MBA can raise your median income by $80,000 in financial services, representing an impressive 89% wage boost over a bachelor’s degree. To get an idea of salary expectations by profession, refer to this A-Z breakdown by The Balance.
Your field requires it
In numerous industries, a graduate degree has become the new baseline for entry-level positions. Professions like teaching, mathematics, and urban planning may require a master's just to get started (use this occupational outlook handbook to explore professions based on their minimum education standards). If you’ve reached a career ceiling, pursuing a graduate degree can be a strategic move, particularly if it’s necessary to advance to higher-level positions.
You can afford to pay for it
The less debt you take on, the more valuable a graduate degree becomes. Education is an investment, but like all investments, it carries risks that you should try to minimize. Look into tuition assistance programs your employer might offer, such as 401(k) matching. Be sure to apply for scholarships and grants to help reduce tuition costs. You might also consider attending school part-time while working. Additionally, if possible, cut down on living expenses, perhaps by staying with family while you earn your degree.
Reasons to avoid getting a master’s degree
It’s largely online
In response to the pandemic, many schools have transitioned to remote learning, but the costs remain largely the same. You're missing out on networking opportunities and hands-on learning experiences in labs or student groups. In fact, numerous students have voiced concerns about the quality of education without the social interactions that occur outside of Zoom meetings.
You haven’t yet entered the workforce
When you're just starting out in a new career, hands-on experience often outweighs formal education. A 2018 survey found that employers tend to prioritize internships, college work experience, and volunteer roles over GPA or coursework. People also switch careers frequently, so a master’s degree might be unnecessary if, after gaining real-world experience, you decide the field isn't right for you. Consider the entry barriers in your chosen field: is it about experience or education?
Your desired field doesn’t require advanced degrees
Does your chosen profession demand specialized knowledge that only a graduate degree can provide? Take journalism, for example—a field with few barriers to entry. If you can build a successful career from your laptop, is a $77,000 master’s in journalism from Columbia really worth it?
Higher job placement rates and salaries aren’t guaranteed
If you're pursuing a career in a field with diminishing job opportunities, it's crucial to carefully consider your goals for obtaining the degree. What's the outlook for your industry both short-term and long-term? Are you aware of the current employment rate? This employment rate ranking by profession can serve as a helpful starting point—make sure to factor employment prospects into your decision-making process.
Do the math
Every school is legally required to provide an estimated ‘cost of attendance,’ which should be the foundation of your budget. From that point, assess how much you can cover yourself and how much you will need to borrow in student loans. Finally, you should compare the total amount of debt (including interest) with your anticipated income over time to determine if this is a sound investment. For more information on calculating the return on investment for your degree, Earnest has a detailed breakdown here.
Not everyone pursues higher education with the goal of increasing their income, but if you're taking on significant student debt or giving up your current income, it’s essential to understand the cost of the degree and have a clear plan for repaying it.
