If you’re thinking about pursuing a graduate degree, you’ve probably considered using student loans to help cover the costs. It’s really important to carefully think about whether taking on debt for your education makes sense.
First, consider whether a graduate degree is necessary for your career. If it’s not essential, taking on debt might not be the best idea. Financial advisors typically don’t recommend incurring debt for something you want but don’t really need.
**Career Considerations**
After starting your career with a bachelor’s degree, you might feel like getting a master’s degree is a must. In fields like psychology and social work, a master’s can increase your earning potential and offer better career prospects. For example, back in 2013, psychology graduates with a bachelor’s had a median starting salary of $37,000, which jumped to $48,200 with a master’s.
Most fields do offer higher pay to those with a master’s degree, but it’s not always beneficial. Sometimes, having a master’s might limit your job options, especially if you’re applying for entry-level roles. Employers might think you’re overqualified, and you could end up with higher salary expectations that make some positions less viable for you.
On the flip side, if you’re already into your career, a master’s in fields like business or engineering might open more doors and increase your pay.
**Financing Your Education: Are Student Loans the Best Option?**
Once you decide a graduate degree is necessary for your career, the next question is whether student loans are a good way to pay for it. Research salary expectations with the degree you plan to earn. Platforms like Payscale can show you salary ranges for different fields and locations. With this info, you can estimate your salary bump after getting your degree. You might also find specific insights through online searches.
For tuition, in-state residents at public universities might pay around $5,000 per semester, while out-of-state or private school students could face costs closer to $10,000. Knowing this, you can use online calculators to figure out potential monthly loan payments, adjusting for loan types, interest rates, and repayment terms.
Remember, a higher salary from a graduate degree might not translate into much more take-home pay after taxes and retirement contributions. Make sure your degree doesn’t leave you with less money once loan payments are factored in.
**Exploring Other Graduate School Financing Options**
If a master’s degree fits your career goals but you don’t like the idea of loans, there are other options.
**Pay As You Go**
You don’t have to be a full-time student. If you have a stable full-time job, consider taking evening classes and saving up for tuition.
**Scholarships and Grants**
There are scholarships and grants for graduate students too, including ones for specific demographics, not just fields.
**School Support**
Your graduate school might offer financial aid. Some offer fellowships for full-time students that you don’t need to repay. You might find roles as research or teaching assistants to help reduce tuition costs.
**Employer Reimbursements**
Sometimes, employers cover your graduate degree costs if they see the benefit of a more educated staff. Policies vary, and you might need to show that the degree relates to your current or future job.
**Hybrid Approach**
You’re not confined to just one way of funding your education. Combining scholarships, employer support, and student loans might be a sensible approach if you need extra money.
In summary, if a graduate degree suits your career path, take the time to explore all your options before jumping into student loans. Different paths can help you reach your goal while saving money and reducing stress.