Is graduate school a waste of money? Why should I pursue an advanced degree?

[highafterthought116]

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Do I really need a graduate degree? Isn't it a waste of money?
So, here's my story - I'm in my early 20's with a public policy-related job, which is more than I could ask for. Why does everyone insist that I pursue a Master's degree, while accumulating over $25,000 worth of debt? Fortunately, I just payed off all undergraduate student loans, so I'm virtually debt-free. I majored in political science and am thankful to hold a position that allows me to utilize my degree, granted I had to work my butt off to get hired.

My post graduate options-

Graduate degree in public policy/affairs, public administration, non-profit management, government/political science.

Cons- these degrees will barely increase my earning potential. Not only will they cost over $23,000 and countless study hours, they'll increase my yearly income by less than $5,000. Advanced degrees for the public sector rarely ever pay off, unless, of course, it's a program at Harvard's Kennedy School of Government or something similar.

Law School - $100,000 student loans, weak job market, especially in the San Francisco Bay Area, where I currently reside.

Social Science Master's - Why bother?

MBA, sciences, etc - not an option, I have 3 years of government/public sector experience. It wouldn't make sense to apply for an MBA, health care, or any other "it now" degrees. It would be a complete waste of time.

Having reviewed my case, wouldn't you agree that grad school is a waste of money? What do you think?

[eri]

Your question should be 'is grad school a waste of money FOR ME?' The answer would probably be yes. Does that apply to everyone else? No, of course not.

[mysticblueheart]

It is not a waste, it can give you aditional knowledge and credit for your work. But if you think it is not wise for you, it will be better if you decide according to your desire :-).

[David]

First off, who is "everybody"? Your boss? Your colleagues? Or your parents? Your friends?

Second, even if the salary increase is only, say, $4k per year, a, say, $25k investment may be worth it. I don't know how much you're making at the moment, but let's assume that you're making $50k right now. Let's also assume that it's a two-year master's program, and that you have 40 years left until retirement. If you spend $25k on tuition and you lose $100k in terms of salary, the total cost of the degree would be $125k. However, you'd make $4k more in each of the subsequent 38 years, i.e. $152k more in total. So as you can see even in that case it would pay off. (Needless to say one should also take into account raises, interest, inflation, etc., but since this is not a research project I will leave those aspects aside.)

You also have to take into account that salary raises are often given as a percentage, implying that a small one-time increase will contribute considerably to your lifetime income.

Having said that, it may well be that in your particular job right now it doesn't pay off. Often master's degrees only really pay off when you want to move on to a more senior level job, for instance a job that requires more analytical skills, or a job that requires management skills, or maybe simply a job where you want to stand out in terms of educational background compared to the other candidates.

Law school is a fairly risky bet. However, the average law school graduate's starting salary is similar to the mid-career salary of a poli sci graduate, and more than twice as high as the average poli sci graduate's starting salary. So for the average guy it may be worth it money wise - but there will be some who will have trouble paying off their debt.

An MBA may be of limited use in the public sector. If you really want to go into management then that's a completely different story.

Med school or dental school is almost always worth it money wise. But that would be a total career change.

Let me put it this way: you're only talking about money. But many people simply want to learn more things, or want to be able to get jobs that are more challenging. That's when a master's degree may make sense even if it doesn't pay off as an investment.

You are at a fairly early stage in your career, so there is no need to hurry. Maybe you'll never need a graduate degree, and maybe you will decide to take one in ten years or so. If you don't feel comfortable taking one now then there is no need to be concerned about that. It's your life after all.