Problem
Each member of a research group visited either the Virgin Islands or Hawaii...
|
|
|
Proof abounds that the more education a person has, the higher her salary is likely to be. With this informati
on in hand, why not head back to school at a time when jobs are few, salaries are dropping, and it's not looking like things will improve dra
stically in the immediate future? There are pros and cons to this decision, as there are with pretty much any decision, so it's worth taking
some time to decide what makes the most sense for you and your goals.
Undergrad Degree + Masters Degree = More Money
A recently released report from the Census Bureau Report came out with some pretty staggering numbers. Accordi
ng to the report, average lifetime earnings (money earned during the entirety of one's working life) for a person with a high school educatio
n working full-time, year-round will earn approximately $1.2 million ($1 million for those who fail to earn a high school diploma). Compare t
hat to $2.1 million for an individual with a four-year college degree and you start to see the advantage of an education. The figure is highe
st for full-time, year-round workers with professional degrees, such as a law degree, medical degree, or business degree, with lifetime earni
ng reaching an average of $4.4 million. Those with a doctorate average $3.4 million in lifetime earnings.
These figures precede the current economic woes, but the fact remains: more education means more money. Add to this th
e fact that economic downturns tend to hit lower-income people the hardest as lower-paying jobs are typically cut at a faster rate than manag
ement positions.
Everybody is Going to Grad School...Why Not Me?
In today's economic climate, education not only offers a bit more job security to those who have an advanced d
egree, but also offers a safe haven for those willing to return to the classroom to get it. While it's unclear the exact effect the economy has on the decision to return to grad school, the evidence does seem to indicate some correlation. Law schools, business schools and other typ
es of graduate programs are experiencing record numbers of applications. Law school applications are up almost 18 percent for the 2002-03 aca
demic year, according to the Law School Admission Council, (LSAC). The Graduate Management Admission Council, (GMAC), 2002 Application Trends
Survey reports that 84 percent of the 74 full-time programs surveyed experienced an increase in applications. Seventeen percent of these sam
e programs saw application volume increase by more than 20 percent.
It seems to be a safe conclusion that at least some portion of this increase is due to people opting to pursue a graduate degree who m
ay not have previously considered one. After all, if you aren't working now and have reason to believe your situation isn't changing anytime
soon, it might be the perfect time to learn new skills and increase your marketability. Medical schools are the exception as the entrance req
uirements are so substantial that application numbers are seldom affected by upturns and downturns in the economy.
Check Out These Rates
There is another factor at work right now that makes grad school an especially attractive option. On July 1, 2
002, federal student loan interest rates dropped to a record low 4.05 percent. Keep in mind that federal student loans were already the best
loans out there prior to the rate drop. The result: There's no time like the present to borrow money for school. Interest rates on student lo
ans are at their lowest point in years. This adds up to huge savings over the your course of study and into your repayment period. For more i
nformation about your loan options, read Lessons On Loans.
Then Again, Maybe Not Me
Of course, just because members of your peer group seem to be heading back to school in record numbers doesn't
mean you should too. While grad school may be a safe haven during troubled economic times, if you have a secure job and things seem to be go
ing well, leaving now might not make a whole lot of sense. Before you jump on the grad school bandwagon, weigh your opportunity costs and mak
e sure the sacrifices are worth it. You should look beyond money when making this decision - opportunity costs also include things like postp
oning the purchase of a house, delaying children, etc. Of course for some career fields, such as law, an advanced degree is required for entr
y. If it's your goal to be a lawyer, you'll have to accept the opportunity costs of earning your J.D. Other degrees, like a Masters in Busine
ss Administration, may be less of a barrier to entry in your desired field.
Also, record numbers of applicants mean a lot more competition. Let's face it, it's tougher to get into the top business, law and grad
uate programs now than it was when the economy was doing great and job opportunities abounded. If you don't need the grad degree to enter an
industry or progress in the one you're already in, it might be worth it to wait until the competition slows down.
Should You Stay or Should You Go?
The decision is yours. We recommend that you write out a list of your individual pros and cons, and outline yo
ur short- and long-term goals. With this information in hand, you should be prepared to make the best decision for you.
|
*Test names and other trademarks are the property of the respective trademark holders.
Copyright © 2004 The Princeton Review, Inc. Used under license. All rights reserved.
-
|
