Going back to school for a master’s degree during an economic downturn can make sense—why not upgrade your skills if you’re already underemployed? Well, there’s a downside right now, too: remote learning can be unfulfilling and graduate degrees are still expensive. You’ll always want to do the math before you enroll.
Reasons for getting a master’s degree
Of course, pursuing more education isn’t just about making more money, but that doesn’t mean you should ignore the potential financial benefits, either. Generally speaking, you’ll make more money with a master’s degree, earning a median weekly salary of $1,434 compared to $1,198 for a bachelor’s degree, according to the U.S. Bureau of Labor.
A master’s degree will improve your current salary
Some jobs automatically provide salary increases to employees who earn a graduate degree (teaching is one example), which makes them safer investments. But there’s a catch to all this, as not all degrees are guaranteed to have a financial payoff. There’s less demand in the labor market for a master’s degree in fine arts, for example, which on average will only yield an extra $10,000 in median wages compared to a bachelor’s degree.
In contrast, you’ll find more employment opportunities and a higher salary with a master’s in Business or STEM-related fields. As an example, a MBA can increase your median income by $80,000 if you work in financial services, a whopping 89% wage premium over a bachelor’s degree. To know what to expect in terms of salary by job type, check out this A-Z breakdown by The Balance.
Your chosen field demands It
In many fields, the graduate degree is the new bachelor degree. Some professions like teaching, mathematics, and urban planning might require a master’s degree just to get an entry-level job (check out your field using this occupational outlook handbook, which sorts professions by their minimum educational requirements). When you’ve hit a ceiling in your profession, getting a graduate degree can be a smart move, especially if it’s essential for getting promoted to senior roles.
You can afford to pay for it
The more debt you can avoid, the more a graduate degree is worth it. After all, education is an investment, but investments still have risks that you want to minimize. Consider tuition assistance programs through your employer, like 401(k) matching programs. You should also apply for scholarships and grants—anything that helps offset the costs of tuition. You could also do school part time while keeping your job, too. Consider reducing expenses as well, perhaps by living at home with your parents while you earn your degree, if that’s a possibility.
Reasons to not get a master’s degree
It’s mostly online
With the pandemic, schools are offering programs through remote learning but the costs are pretty much the same. You are missing out on networking and the practical learning found in labs or student groups. Indeed, many students complain about the quality of the educational experience without socialization outside of Zoom calls.
You haven’t yet entered the workforce
If you’re breaking into a new career, experience can be more important early on. A 2018 survey revealed that when hiring, employers still consider internships, employment during college, and volunteer experience more important than GPA or relevant coursework. People often change careers, too, so a master’s degree could be a waste once you get some real-world experience in your field and decide that you don’t like it. Think carefully about the barriers in your field: is it a matter of experience or education?
Your desired field doesn’t require advanced degrees
Does your profession require specialized knowledge only gained through a graduate degree? Journalism is a great example of a profession with relatively low barriers to entry: if you can build that career from your laptop, is a $77,000 master’s of journalism from Columbia worth it for you?
Higher job placement rates and salaries aren’t guaranteed
If you’re entering a profession with shrinking job prospects, you’ll want to think carefully about what your goals are with the degree. What is the short-term and long-term picture for your field? Do you have a sense of what the employment rate is now? This ranking of employment rates by profession is a good place to start—make employment rates a part of your decision-making.
Do the math
Every school is required to provide an estimated “cost of attendance,” which should be the starting point for your budget. From there you’ll need to know how much of that cost you can cover on your own and how much you’ll need to borrow from student loans. Lastly, you’ll be subtracting the total debt payment (with interest) against your projected your income over time to see if it’s worthwhile as an investment. For more details on how to determine the return on investment for your degree, the site Earnest has a good breakdown here.
Again, not everyone seeks higher education to make more money, but if you’re going to take on a lot of student debt or lose your current income, you’ll need to know the cost of your degree, and have a plan to pay for it.