Perhaps you have decided that you want your graduate degree to get promoted at your current job. Maybe you want the degree to break free from it altogether. Maybe you want to educate yourself further to improve your performance. Whatever your reason, the decision to go back to school and work towards an advanced degree is as much of a pragmatic decision as it is a monetary one. You could be opening yourself to accumulate debt in the hope of seeing higher pay or promotions.
On the flip side, your advanced degree could allow you access to a level of success unattainable previously. For example, in Nace’s 2019 Winter Salary Survey, those earning a bachelor’s degree in business administration had a starting salary of $57,133 while those with a Master’s degree started with a salary of $84,580, a difference of $27,447. It’s a complicated decision that undoubtedly will take some consideration, but if you do indeed decide to pursue an advanced degree, here are some financial considerations when pursuing an advanced degree.
Choose a School That is Affordable for You
Simply because a school costs more doesn’t always mean that it has the best program for the field of study you’re looking to pursue. Looking at what your goals are for the utilization of your degree is what you should consider. For example, if you have decided that obtaining a Masters degree in chemical engineering is what will advance your career, you don’t have to start pining over an elusive (and expensive) university. It’s always a good idea to look at a large variety of colleges to see which offer the best program in your particular field and then weigh the costs. You may find your perfect program resides at a more price-friendly school, or even an online program, you had not even considered.
Ask About Tuition Reimbursement From Your Employer
The degree your considering is in many cases not only for you but for your employer as well. If you have specialized education in an area that can catapult your employer into further success, they may help you with some costs. It is common for employers to incorporate tuition reimbursement into compensation packages. If it turns out that you don’t currently have this option through your employer, you can bring up the topic. If it would steer the negotiation process, you could commit to working a certain number of years at your position before becoming fully vested in the reimbursement program.
Take Caution When Borrowing for Your Advanced Degree
What if you have decided that getting your advanced degree is the right move for you, but your situation dictates the need to borrow money? Be sure to think through your options carefully. Make sure you do your research and apply for all available scholarships and aid available to you. What’s leftover beyond what you can cover yourself may result in taking out loans, so do your best to find ones with low-interest rates and reasonable payback schedules. Also, when weighing your options, be aware of origination and application fees.
Keep Different Accounts for Personal and School Funds
You can have large chunks of money coming and going from your accounts while you are in school so that it will be challenging to monitor how your school expenses are affecting your budget. By keeping separate accounts for your personal and school transactions, this will help you break down your costs. In turn, this allows you to create and maintain a successful plan that makes you feel comfortable.
Deciding to go back to school to obtain an advanced degree takes courage. It also takes careful thought and planning. Taking the time to think through these financial considerations when pursuing an advanced degree can ease some stress and help you stay focused on your studies.
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