Historically, grad school has been perceived as an escape hatch of sorts during an economic downturn. For some new university graduates, a master's or even doctoral program offers a seemingly safe alternative to entering the job market when employment opportunities are limited. Some experts warn that grad school isn't the answer. They argue that it could actually exacerbate the problem by adding to your student loan debt. While there's no clear answer that will provide the best route to a successful career for everyone, there are some important questions to consider when making the best choice for your personal goals and circumstances. Below, we present 10 of these questions along with some relevant information for each.
#1—Does your field require (or reward) a graduate degree?
The decision to go to graduate school is a serious one, andit's not one you should make just because you don't know what else to do withyour time. According to the Bureau of Labor Statistics (BLS), less than 5% ofall jobs in the United States require a master's degree for entry. If yourfield doesn't mandate an advanced degree, or you think you may not be rewarded(with a senior position and/or higher starting salary, for instance), thenthere may be better alternatives.
For instance, you may consider taking some professional development or certification courses in lieu of signing up for a full degree plan. This could be substantially cheaper than even the most affordable master's program and may have a similar effect on your job prospects, depending on your field.Related: Top 10 Most Affordable Master's Degrees Online
#2— Will you be more marketable with a graduate degree?
Even if your desired occupation doesn't absolutely requirean advanced degree, a master's credential may make you more marketable in somefields. This is especially true in competitive sectors like technology,business, and engineering, for example, where there are often more applicantsthan available jobs.
On the other hand, there's the concern of being overqualified for the position you want. If you get a master's degree and the economy hasn't recovered when you graduate, you could find yourself interviewing with budget-strapped companies who can't afford to pay you what you're worth.Related: This Is What Happens When You Hire an Overqualified Candidate
#3— Were you planning to attend graduate school
eventually?
If graduate school was always in your long-term plans, itmay make sense to get it out of the way while we're experiencing an economicdownturn. The idea is that a recession is as good a time as any to advance youreducation, and it may be a way to avoid the difficult job market for a season. Professionssuch as those in law, medicine, and business will often require a master'sdegree, so if these are the fields you're interested in, graduate school is almosta no-brainer.
#4— Will the economy be improved when you finish grad
school?
This is a question to consider, but let's be frank—there'sreally no answering it, at least not definitively. No one has a crystal ball tolook into to predict the future, so we don't really know what the state of theeconomy will look like two, three, or even five years down the road when youhave a shiny new graduate degree.
#5— How will you pay for graduate school?
This is the real question, isn't it? Most people faced with the dilemma of whether or not to go back to school for an advanced degree are most concerned with the financial hardship that doing so might create. Not only will you want to determine how to pay for grad school, but you'll also need to examine your financial situation in its entirety. For example, if you already have student loans from undergraduate school, then taking out another loan may put you in a tough spot. After all, these loans don't just disappear.
There are some circumstances in which an employer may pay for your grad school or you find yourself in another situation where an advanced degree is free or cheap. You may receive a generous scholarship or grant, for instance. In these cases, it may be too tempting to turn down the opportunity to get your advanced credentials with such a minimal investment.Related:50 Best US Colleges For Graduating With Low To No Student Loan DebtFind graduate school scholarships
#6—Do you have relevant experience in your field?
Depending on your prospective occupation, some employers may prefer that you have some experience in the field prior to pursuing an advanced degree. If your bachelor's program didn't include an internship or other experiential learning component, then it may be a good idea to seek some sort of real-world experience in your area of expertise before applying to graduate school. This could mean an entry-level job, a post-grad internship, or even a volunteer position.
#7— How does your professional network look?
It's a cliché because it's true: sometimes, getting a greatjob (or any job) is all about who you know. If you look around and find yourprofessional network lacking, then a graduate degree program may afford you theopportunity to grow this network. Grad school provides students with the uniqueexperience of being surrounded by people with similar career goals andinterests. Often, professors double as industry leaders with connections tocompanies and individuals who could provide meaningful internship opportunitiesand even job leads. Just being a part of this kind of professional communitycould give you an advantage in the job market. This is particularly true if youtake grad school seriously and prove to be a high-achiever.
#8— What is your projected ROI?
Calculating your return on investment is always a good idea when enrolling in a degree program, but in times of national financial crisis, it's crucial. In order to estimate what your ROI will be from graduate school, you'll need the following information: 1) the cost of your graduate program and 2) projected earnings after graduation.
Of course, this will require a bit of fortune-telling since there's no real way to project your exact post-grad salary. Still, you can research median annual wages for the position you're hoping to get and use this as a best guess.Related:100 Affordable Public Schools With High 40-Year ROIsOverview of BLS Wage Data by Area and Occupation
After that, the mathematical equation is fairly straightforward:
Projected earnings minus cost of graduate program equalsreturn on investment.Plug in the numbers to calculate short-term and long-term ROI and use the resulting figures as one factor to consider when deciding if grad school during a recession is worth it. Of course, if you choose an affordable grad school in combination with a lucrative occupation, then your ROI will be high. On the other hand, the more expensive the school and the lower the salary, the less your return will be.Related: The 45 Most Affordable Graduate Programs Online
Simple enough, right? Real ROI can be a bit more complicated than this, though, depending on how far down the rabbit hole you want to go. In reality, you're investing more than just the cost of tuition when you decide to take on a graduate degree program. For example, you can expect to put in a lot of time and effort into your academic pursuit. You may have to sacrifice some things such as your social life and the money you would be earning had you decided to take a full-time job instead. It's up to you to decide how much value to place on these hypotheticals and whether they're sacrifices you're willing to make for your master's or PhD.
#9— Can you get into graduate school?
A recession means that entry into graduate school will bemore competitive than ever. Translation? You'll need to examine your academictranscript and determine how you're going to stack up against the numerousother applicants who have the same idea as you. At a minimum, you'll likelyneed a 3.0 GPA, but the higher it is, the better your chances will be.
Remember, many graduate schools also require Graduate Record Examination (GRE) scores as well. If you're sold on the idea of returning to school for an advanced degree, you'll need to prepare yourself for success on the test. Average GRE scores fall in the 150 range for both sections of the test (i.e., quantitative and verbal), so this is a good minimum score to aim for. Still, some schools weigh these scores differently than others. While a high GRE number may impress some universities, others will want to take a more holistic approach to evaluating your grad school application.Related:What Is a Good GRE Score for Graduate School Admissions?Average GRE Scores: How Do Your Scores Compare?
#10— What are the known benefits of grad school
(for you)?
As you've likely already gathered, you'll face a lot ofunknowns when deciding whether or not to return to school for a graduate degreeduring the recession. Take a moment, though, to think about what you knowyou'll gain from the experience. Will you feel a sense of great accomplishmentafter receiving your master's or professional degree, for instance? Is there acertain research area or specialty you're particularly excited about studying?While there are many uncertainties about what an advanced credential will dofor your career, there are also some known personal benefits that many peopleexperience.
Ultimately, the decision to go to graduate school during aneconomic downturn (or at any time, for that matter) is a highly personal one.No one—not even the best economic advisor or career counselor—can make thischoice for you. Still, the more information you have, the better equippedyou'll be to make the call. Our advice? Find out as much as you can about yourspecific field of employment. You can gain helpful information through onlineresearch, but don't underestimate the value of talking to people alreadyemployed in your field. These individuals can often provide you with an insidelook into hiring practices and industry trends.
Once you've done your due diligence, make a list of pros and cons, talk to your friends and family members about the potential of going back to school, and seek out whatever resources and guidance you can to make this tough call. In the end, you'll want to ensure that no matter what you decide, you're content with your decision. After all, it could affect your future career for the long-term!