Should You Consider Using Student Loans for Graduate School?

If you’re thinking about going for a graduate degree, you’ve probably considered using student loans to help cover the costs. It’s important to seriously weigh whether taking on debt for your education is a smart choice.

Firstly, figure out if a graduate degree is essential for your career. If it isn’t a must-have for your field, it might not be worth going into debt. Most financial advisors wouldn’t recommend taking on debt for something that’s more of a want than a need.

**Career Considerations**

After earning your bachelor’s degree, you might have thought a master’s was a logical next step. In fields like psychology and social work, having a master’s could increase your earning power and boost your career opportunities. For instance, back in 2013, psychology graduates with a bachelor’s degree started with a median salary of $37,000, whereas those with a master’s earned about $48,200.

In many fields, a master’s degree does lead to higher pay, but it’s not always the best move for a few reasons. For starters, having a master’s might actually limit some job opportunities. If you go straight for a master’s after your bachelor’s, you’ll still apply for entry-level jobs, but employers might skip over you, thinking you’re overqualified. Your higher degree might increase your salary expectations, but it could also mean fewer job options.

On the flip side, if you’re midway in your career, a master’s in areas like business or engineering can open more doors and bump up your salary.

**Student Loans: Are They the Right Fit?**

Once you know a graduate degree is a must for your career, the next step is figuring out if student loans are financially viable. Do some deep-dive research on what salary you could expect with that degree. Websites like Payscale can give you a good idea of what the pay range looks like in different fields and areas. With this info, you can estimate how much your salary might increase with a graduate degree.

Take a look at tuition costs too. If you’re an in-state resident at a public university, you might pay around $5,000 per semester. If you’re out-of-state or at a private university, costs could stretch closer to $10,000.

With these numbers in mind, use online calculators to estimate your monthly student loan payments, tweaking things like loan type and interest rates. Remember, while a graduate degree might boost your salary, it might not make a big difference in your take-home pay after taxes and retirement contributions. It’s crucial that your degree doesn’t end up costing more in monthly loans than you’re earning.

**Other Financing Options**

If you’re set on a master’s degree but don’t like the idea of student loans, there are other options:

– **Pay as You Go:** You don’t have to be a full-time student. If you’re working full-time, consider taking evening classes and paying for your tuition as you save up.

– **Scholarships and Grants:** Look for scholarships and grants for graduate students. There are options for various demographics outside specific fields.

– **School Support:** Some graduate schools offer financial aid, like fellowships, that don’t require repayment. Research and teaching assistantships might waive tuition costs.

– **Employer Reimbursements:** Some employers offer to pay for your degree, especially if it benefits your job performance. Check your company’s policies.

– **Hybrid Approach:** You could combine these options. Scholarships and employer support might cover some costs, leaving you to consider loans for the rest.

In conclusion, if a graduate degree is essential for your career, carefully explore all your options before jumping into student loans. There are different ways to reach your goal, some of which could save you money and stress.