Buzz
As tuition costs skyrocket, more individuals are viewing college as an investment rather than just an educational pursuit. Forbes outlines how to assess the potential return on a graduate degree.
Financial expert Laura Shin offers key insights for evaluating whether grad school is financially viable. She suggests:
Initial Evaluation
: Combine your undergrad debt with grad school debt, then subtract your projected first-year salary. If this sum exceeds your first-year salary, the cost of your education may be too steep...
If your debt doesn’t surpass your starting salary, the next step is to calculate your long-term earnings with and without grad school...
Project your current salary, factoring in annual raises, and estimate how much you would earn each year until retirement. Add these figures together. A spreadsheet can simplify this calculation, and I've provided one with formulas for your convenience.
She also emphasizes the importance of evaluating how a break from the workforce for grad school may impact your retirement savings. Shin provides an in-depth analysis on each aspect, so be sure to read her full post for more insights and calculations.
Image courtesy of CollegeDegrees360.
