Discouraging
predictions of lower salary hikes coupled with a tough job market
have increased the already growing number of people returning to school.
Numbers have been steadily growing because of increased educational
requirements in the job market and the fact that on average a higher
level of education translates into a higher annual salary. Salary.com's
calculations for 2003 placed bachelor's degree holders at an average
salary of $43,000, and master's degree holders at $53,000 (see earnings
chart below). Therefore many professionals assume it is logical to
go back to school, just as many undergraduates assume it is a good
idea to avoid the tough job market altogether and enter graduate school
immediately upon graduation. But many experts disagree, and are encouraging
individuals to first weigh the benefits along with the drawbacks associated
with attending graduate school.
Median 2003 Income by Educational Level
   
Source: Salary.com
While it may seem like a logical choice for everyone, there are opportunity
costs associated with attaining a higher degree, not to mention the
career risks one takes if rushing into such a decision. Many career
counselors suggest that individuals seek a higher degree mainly to
pursue a passion or strong interest they have in a subject, rather
than for a higher income or job security, as these are not always
guaranteed. It is also strongly advised that in order to discover
or reinforce your interests and better understand how a higher degree
may benefit your career, one should first pursue work in their field
and seek advice from professors and experienced professionals. Those
who have worked in their field for a number of years will be more
able to make this decision on their own. A cost analysis should be
performed as well, on costs associated with going back to school and
the alternative cost comparisons.
Average graduate school and living costs per year are running upwards
of $26,000 a year according to U.S. News and World Report. And according
to Nellie Mae's National Student Loan Survey, graduate students held
an average of $23,700 in loans upon graduation last year, not to mention
the lost income and savings. This is the reason some experts suggest
taking classes part-time while continuing to work. This way you won't
forgo potential promotions, and the income flow and benefits will
help counteract the cost of attending school, while still allowing
you to pay the interest on your loans. Another way to avoid high costs
is to look into attending public school rather than private, which
can run at significantly lower tuition costs.
There
are many different options available for professionals looking to
attain a higher degree. Many highly regarded schools offer executive
MBA programs with night and weekend classes, and most schools are
increasingly making efforts to support part-time and distance learning
students. Online degrees are a viable option as well these days;
see related article, The
Value of Online Learning, for more information. Another advantage
of part-time and online degree programs, along with the cost benefits,
is that you are able to apply your skills immediately, keeping you
current and more attractive to employers.
It
is also important to keep in mind the validity of your degree, and
salary potential in the field. Going back to school in a field because
it is in high demand or pays a high salary is risky as it's possible
the job market will have changed once you graduate. It is therefore
essential to choose a degree that is based on your personal interests
and skills and allows you to be flexible in the market and take
on a variety of jobs in a variety of areas. Another factor to consider
is the type of company at which you want to develop your career.
While advancement at many Fortune 500 companies often warrants an
M.B.A, at other companies it may not be necessary or even beneficial.
All
in all, it is most important that you define your own personal priorities
and goals regarding a higher degree, and by taking into account
all of the various aspects of attaining this degree you will be
on the right track to making the best decision.
-
Caitlin Kneram, Salary.com contributor
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