Posted on 09/12/2007 8:15:39 AM PDT by SirLinksalot
This is a continuation of the article posted here
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Isn't a master's degree the new bachelor's?" I hear this all the time when I visit college campuses.
In some ways, the answer is yes. The number of master's degrees conferred is expected to rise 30 percent over the next 10 years, and 40 percent of college graduates will enroll in a graduate program within a decade after college.
But does graduate school pay off? I'll unabashedly ignore the value to humanity of pure research and the liberal arts in answering this question, and focus instead on the hard economics of a graduate education.
Caution and Preparation Are Key
Graduate degrees are necessary for some fields, raise earnings on average, and can lead to more enriching careers -- but choose carefully. Compared to college, there's less financial aid available; tuition is higher (averaging over $20,000 for master's programs at public institutions); parents are less likely to foot the bill; and, as an independent adult, you give up income from working in order to attend.
Less than a fifth of all graduate and professional students receive scholarships, fellowships, or assistantships. And some graduate degrees barely increase your earning potential -- and may even lower it.
The bottom line is, besides the out-of-pocket and opportunity costs, graduate school is meant to prepare you for a specific field. If you end up working outside that field, there goes a lot of time and money. That's why I think anyone who enters a graduate program should first spend at least a year getting closely related work experience.
A Discipline-by-Discipline Breakdown
Provided they match your interests and abilities, some programs are very likely to be a good investment even if you have to borrow the entire cost.
Others should be pursued only if academics are your absolute passion and nothing else will satisfy you; if you can minimize costs by working, choosing a public program, or attending part-time; or if you get a full ride.
Here's my very rough ranking of programs along that spectrum:
• Business school
Even more than other grad students, MBAs are expected to enter school with years of related work experience. Maybe that's why they find it so rewarding.
Over the past few years, MBAs have averaged between $30,000 and $40,000 in student loan debt. Their average starting salaries, on the other hand, are over $80,000, and for those in the top-10 schools, over $90,000.
• Medical school
"Medical student debt is at a crisis point," as the American Medical Association (AMA) concluded in a 2003 report. Loans average over $100,000, while for at least three years after graduating you'll be a resident earning between $35,000 and $40,000 a year.
The AMA found that high loan debt affects specialty choice and leads to feelings of depression and burnout among residents. In the long run, however, medical salaries do tend to offset debt, ranging from a low of $100,000 for family practitioners to a high of $850,000 for cardiologists.
And let's not forget dentists. They borrow as much, have lower stress than most doctors, and can earn the same six-figure salaries.
• Master's programs
In general, master's degree students come out with an average of about $32,000 in debt, while for Ph.D.s it's around $53,000. Those with master's degrees earn about 18 percent more than those with bachelor's degrees on average, and Ph.D.s earn about 50 percent more.
Technical fields have a bigger payoff. Graduates with master's degrees in computer science, engineering, or math earn about 50 percent more than those with bachelor's degrees.
Education, one of the most common master's degrees, has a comparatively small but positive payoff.
• Law school
Law students borrow over $80,000 on average. Starting salaries at large firms are over $100,000, but beware: The best jobs are reserved for those at the top-tier law schools. Small firms, nonprofits, and government jobs pay around $40,000 to start.
Officials in the profession are concerned that exploding debt is making lives harder for non-corporate lawyer types. If you're interested in public interest law, look for a loan repayment assistance program, which will help pay back your debt in exchange for serving the public good.
• Advanced degrees in the humanities
According to the U.S. Census Bureau, the payoff from social science and liberal arts master's degrees is actually negative -- the average liberal arts MA earns less than the average of all BAs.
And according to an in-depth study conducted back in 1999, those with Ph.D.s in the humanities had the highest debt and lowest income of all students in all disciplines.
Moreover, universities are increasingly relying on part-timers rather than tenured professors. That means the number of well-paying, secure jobs in academia is going down.
• Advanced degrees from art, culinary, and journalism schools
From a dollars-and-cents perspective, the worst values in graduate education are those in which tuition is high and average earnings are low or unpredictable: fine arts, creative writing, and cooking come to mind. Popular and exclusive graduate programs in creative and competitive fields can charge high prices because they promise access to an inner circle -- a crucial edge in a line of work that's always going to be a bit of a gamble.
This spring, the New York Times detailed the plight of those who borrow $80,000 in private loans to attend culinary school, when average beginning salaries in the restaurant industry are between $20,000 and $30,000.
Entry-level salaries in journalism are only a bit higher, in the $30,000 to $35,000 range, and the world of print journalism is currently in incredible turmoil. So taking on a high five figures of debt for this career is a big risk as well.
Choose Wisely
The grad students I meet generally have high aspirations and a desire for meaningful careers. Yet it's still quite possible to become a novelist without an MFA, a journalist without a journalism degree, and just about anything without a master's in media studies.
It's important to remember that universities create and market new graduate programs to serve their own needs as much as to add value for prospective students. So anyone who's smart enough to get an advanced degree should be smart enough to limit their expenses to a minimum and choose a program that will widen their options without saddling them with debt.
And according to an in-depth study conducted back in 1999, those with Ph.D.s in the humanities had the highest debt and lowest income of all students in all disciplines.What, nobody is paying for their in-depth knowledge of all matters concerning gender identity, Marxism and gay sex? How is that possible?
Great article.
Find an employer that will foot the bill, or at least a large part of it. The Government paid for at least half of my courses as “work related”. Most of the rest were paid for under the GI Bill. I had relatively little out-of-pocket expense. Of course, going part-time does take longer; but you’re still earning a salary along the way.
I would have liked to see comments on “education degrees”, such as M.Ed. and E.Ed..
Having been involved in Graduate Studies for several years, this a very good, spot on article.
When people talk to me about going to “Grad School” my first question is “what for?” If they can’t answer that, it’s not worth going.
When I tell people they need to figure out what they want to do first, then pick a program that fits their career aspirations if it is necessary, you would think that snakes were coming out of my ears.
Where else can a kid go and have his parents spend $40K a year so he can party his butt off? Heck yes it is worth it.
In many states the M.Ed. is required to keep certification after so many years. It has become a bit of a joke at some schools because people are only there because they have to be.
Ed.D’s are supposed to be the practical application doctoral degree, however it has never really been treated with respect.
If both of these were set up as true, rigorous programs, we would have some REALLY strong master teachers and administrators that would have the equivalent to an MBA.
Well...that really depends doesn’t it...
If you are going to grad school for a Masters/PHD in some field of applied science...it’s probably worth it.
Business (Unless it’s Harvard, Wharton, or Kellog School of Business) or Humanities...etc...who gives a krap...
But it has been worth it. I can't measure my education by the degrees. For me, the intangibles that come from pushing myself beyond my comfort zone, striving, setting goals, and being rewarded not just in a grade but knowing that I left "nothing on the field."
For me, the 6 years I spent in academia have been the most rewarding and promising of my life. I would not trade them for anything.
NO
Yes, but you went for something. Were you interested in your chosen field? Did you want to improve your scholarship in that area? Does a research or academic position appeal to you? Do you have long term career goals where you know your degree will better position you?
I speak with people who can’t even answer these questions. Generally a yes to 2, 3, or 4 is a good enough reason to pursue graduate school if you have a field of interest.
I just accepted a position with a Fortune 500 company where an MBA is required. I entered the MBA info on the application (name of university, location, GPA and graduation date). I was never asked for actual transcripts or a copy of the degree.
Except for the FBI application process, I have never been asked to produce any documentation to prove I have a college degree.
And whose fault is that? It's not like the AMA has been battling to dismantle the utterly socialist and non-competitive residency system, and replace it with a free market system that would pay recent medical school graduates what they're really worth.
One correction: medical schools are running between $140,000 and $190,0000 for four years. $850,000 is, I think, a vast overestimation of a Cardiologist’s income. A realistic cap is around $400,000 for that field, perhaps a little higher for dermatology, orthopedic surgery. I’m not sure where plastics fit in, but I’m guessing it’s on the high end as well. $100,000 is accurate for FP (one of the reasons nobody wants to do it).
I’m right with you Princess B. I was the only person in my circle of friends that did not pursue a graduate degree within a year of finishing college. The reason? I didn’t know what I wanted to do, and didn’t want to waste my time and money getting a degree that I would end up not using. I now am going back to business school after 11+ years as an engineer. I have not been ready until now. It will be tough balancing the time commitments, but my company is paying for most of it, so the decision was a no-brainer...
And even those the long term goals have changed course in six years - the degree is still necessary.
Check some of the top research universities. Some of the cardiologists there do pull in high income that tops $1 million.
Then you have to factor in the cost of malpractice insurance, which varies widely by field, and the risk of becoming uninsurable and for all practical purposes unable to earn a living at the profession you’ve gone heavily into debt for, because of a trumped up claim supported by a jury of welfare bums who view malpractice awards as something akin to winning the lottery for the person who receives them.
Last year I was talking to a former ob/gyn who’d been in practice for 30 years, never had a single malpractice claim, much less award, and had given up ob a year earlier when his annual malpractice insurance premium was raised to over $250,000. If he’d had an award against him, he probably wouldn’t even be able to practice as a gyn anymore.
Still, I can see how some degrees are more desirable than others.
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