Higher Education and Income

Higher Education and Income

Introduction

What if becoming a working stiff before the ink on your sheepskin has dried doesn't appeal to you? What if you decide that pursuing a graduate degree is the only way to ensure long-term job security and higher pay? Is obtaining a master's degree the only path to long-term career stability? Does a higher education mean higher pay? The answers may not be as obvious as you think.

What Do You Plan on Doing?

True enough, obtaining a master's degree can lead to job security and more opportunities for advancement. However, it does depend on the field in which you want to work. Put simply, some careers demand that prospective employees get a master's degree (Cookson 2004 23). For example, in natural sciences and law, an entry-level position is only available to those possessing a master's degree. Want to be a teacher? You should plan on obtaining a master's degree at some point, as many districts require it in order for teachers to continue employment. For anyone seeking work in these fields, obtaining a master's degree is not about making more money or acquiring promotions, it's about getting a job and keeping it. That said, obtaining a master's degree is not a question of price, but of desire. If you desire a job that mandates having a master's degree, then getting one is not an option.

Do the Math

When getting a master's degree IS an option, many college grads are left scratching their heads. This is where determining the full pros and cons can get tricky. After all, some students borrow $100,000 or more just to complete a two-year program. After interest, payments, and the stress of owing so much money, it is important to break down prospective salaries with a master's degree to determine if the cost is worth it.

According to the 2000 census, households with someone holding a master's degree earned approximately $77, 935 (Witte 2005 35). However, the median household income for those possessing bachelor's degrees was $65, 922. Clearly, there is a definite financial advantage to going the extra educational mile.

The cost of obtaining a master's degree—nearly $100,000—can look pretty daunting on paper. However, appearances are deceiving. First of all, most graduate programs average around $60,000 dollars. So, if a student takes out a student loan for $60,000, the higher salary would end up paying for the education in about four years.

After that, what ...