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Is a Graduate Degree Worth It?

The decision to pursue a graduate education can be a profoundly important one. It’s a big commitment to the next phase of your life, whether that means ascending to the top of your current profession, embarking on a new career, or learning more about a field you’re passionate about.

However, for most people, this decision also comes down to a very basic financial question: will the graduate degree be worth it? That is, will it increase my earnings enough to pay for not only the program, but also the time it takes to complete it?

The answer is different for everyone, and varies widely depending on your profession as well as factors like whether you take the course on campus or online. Here’s what you need to be thinking about:

How Much Will Graduate School Increase Your Earnings?

Let’s start with the good news: in most cases, a graduate degree means an increase in earnings.

According to the Georgetown University Center on Education and the Workforce, the median earnings of someone with a graduate degree is $80,000 a year — a nearly 30% increase over the median earnings for someone with a bachelor of arts degree. Similarly, the Bureau of Labor Statistics finds that the median earnings of someone with a master’s degree are nearly 20% higher than someone with a bachelor’s degree, and a professional degree program graduate earns over 50% more.

Of course, those median figures obscure a lot of variation between professions. For some careers, a graduate degree can lead to a major increase in salary, and in many cases it is a prerequisite for certain positions. In other careers, however, a graduate degree might not mean much — which means it might not pay for itself.

The Georgetown University study has some data points that illustrate this well. For example, graduate degree holders in biology and life sciences can earn $100,000 a year, a two-thirds increase over the $60,000 a year earned by bachelor’s degree holders. By contrast, graduate degree holders in arts and education fields only increase their earnings by about a third.

The Bureau of Labor Statistics is your go-to resource for a deeper dive, with data on educational attainment levels and average wages for a dizzying array of specific positions. Want to be an urban planner? You might want to think about a graduate degree, since over half of Americans working in this field have one, and earn an average of $74,000 a year. On the other hand, less than 10% of insurance underwriters have a graduate education – yet they earn nearly $78,000 on average.

You might have a very clear idea of what a graduate degree means for your salary, especially if your goal is just a promotion within your current company or industry. If you’re not so sure, be sure to consult these types of statistics to get a sense of what a graduate degree might mean for your earnings.

How Much Does Graduate School (Really) Cost?

It’s true: graduate school can be expensive.

The most obvious cost is the price of the degree itself. According to Sallie Mae, the average graduate student pays $24,812 for their degree. Of course, this average obscures lots of differences between costs for various types of degrees, schools, program lengths, and (as discussed below) whether it’s an on-campus or online program. Needless to say, you should have a very clear idea of how much a degree program will cost before you apply!

However, that’s not only cost that you need to be thinking about. That same Sallie Mae study found that over 50% of education costs in aggregate are paid for with student borrowing, which means you also need to consider the cost of financing. If you’re going to be using a student loan to pay for your graduate degree, you need to consider how long it will take you to pay it off with your new salary, and how much interest you’ll be paying in the meantime.

Finally, you also need to be thinking about the “opportunity cost” of your education. Completing a graduate degree program is a major commitment of your time. Some graduate programs might require you to reduce your hours at your current job or quit it entirely, particularly if it’s an on-campus, full-time degree. Factor this in as well when considering how much a graduate degree really costs.

The Online Option

When you add it all up, the cost of a graduate degree can be daunting. Fortunately, the ability to pursue a graduate degree online is proving to be a game-changer for a growing number of students.

With online education platforms like Coursera, you can obtain a graduate degree from world-class universities for a fraction of the cost of getting the same degree on campus. You can also complete the degree on your own time, which can give you the flexibility you need to keep up with your current job. With all of the benefits of an on-campus degree and much lower costs, online options help graduate degrees make financial sense for many students.

So, if you’re considering pursuing a graduate degree, you owe it to yourself to check out online education options before making a decision. Learn more about online degree programs from schools such as the University of Illinois and their full Master of Science in Accountancy program. Earn the same degree as on-campus students, 100% online, on your schedule.

How to Ask Your Employer to Pay for Your Degree

An advanced degree can transform your career, but it can also be costly. Here’s the good news: your employer can likely help with your education expenses. Companies are increasingly investing in continuing education to make the workforce more skilled and engaged.

A 2018 report by the Society for Human Resource Management (SHRM) showed that 51 percent of employers offer undergraduate-level educational assistance benefits. Graduate-level benefits are offered by 49 percent of employers. Now that you know it isn’t uncommon for employers to fund an advanced degree, get started by doing some homework. Build a strong case before you approach your manager. Here are some tips that will significantly improve your chances of getting your request approved.

Research company policy

Find out if your company offers education reimbursement programs. Check the employee handbook, or set up a quick meeting with HR to understand your options. Some employers offer funding for professional certifications and college courses, but not a university degree. Others offer partial compensation by setting caps or limitations on the amount of funding.

Qualifying companies can also take advantage of tax benefits by offering tuition reimbursement. Does your company have partnerships with any universities? For example, Starbucks offers to pay tuition for employees who enroll in the Arizona State University online bachelor’s degree program.

Pick the right time to ask and the right program

Asking at the right time increases your chances of success. What’s the financial outlook of the company? Is your manager working on a particularly stressful project? Be considerate of the circumstances and make your request with the best possible timing.

Pick a program that is accredited and relevant to your role. If you are a software developer, your employer is not likely to fund a degree in art history. Discuss the curriculum and specific courses to highlight how they offer tangible benefits.

Provide a complete cost breakdown

You should know exactly what the program will cost. Break down the expenses for your manager, and explain how much financial assistance you require.

Show how it benefits the company

Investing in employee education can have a positive impact on the company’s bottom line. Employers paid around $600 billion in turnover costs in 2018 — and it’s expected to increase to $680 billion in 2020. But organizations have opportunities to find a more sustainable path forward. In fact, it’s estimated 77% of turnover could be prevented by employers. A 2016 analysis of health insurer Cigna’s Education Reimbursement Program showed that between 2012-2014, the company saw a 129 percent return on investment as a result of avoiding talent management costs.

Explain how your enhanced skills will allow you to take on new projects, and ways that you will use your knowledge to improve team members’ performance. You’ll bring fresh ideas and approaches that can increase savings or generate new revenue options.

The program will extend your network and establish new contacts in the industry. You will be better prepared for leadership positions within the company. This can offset the cost of hiring a new employee. By showing how it values its employees, the company will build a positive brand image.

Sell Yourself

Give details about your accomplishments and contributions to the company. Use specific examples and hard data, if possible. Emphasize that by investing in your personal growth, the company will cultivate a loyal and engaged employee. You will, in turn, invest back in the company.

Address productivity concerns

Your manager will likely be concerned about your productivity. Pick a program that will work well with your office schedule. Online programs reduce classroom time and offer a flexible schedule that allows you to work at your own pace and time. Provide specific details about how you plan to balance your workload. For example, you may work an occasional Saturday or commit to working late some evenings.

Prove your commitment

Some companies require a grade point average to ensure continued funding. If you discontinue the program, or fail to complete it within an agreed-upon period of time, your employer may require you to pay them back. Make sure you are fully committed to the program. Offer to provide monthly updates of your learning and progress.

Demonstrate your loyalty

Many companies require you to sign a contract that you will not jump ship after completing the degree. They may ask that you stay an addition a year or two, at least. Before signing a contract, make sure you feel good about the terms and conditions. Keep your end of the bargain and the result will be a win-win situation for you and the company.

Creating Newsworthy Data Visualizations

Once she landed her dream job as a data analyst, Ponprom wanted to see her insights published. With help from Coursera, the University of Illinois, and Duke University, she got to see her name in print. Here’s her story:

After finishing my degree, I landed my dream job as a data analyst at Bloomberg in Singapore. I had big ambitions to move up in my career and publish influential financial insights – so I started exploring newer topics and acquiring new skills via Coursera.

To curate actionable financial insights for our clients, I needed to be able to navigate through a large amount of data and communicate ideas to a general audience using visual graphics. For that reason, I focused on data visualization courses. My first enrollment was Data Visualization from the University of Illinois at Urbana-Champaign. I applied the skills I learned from that course to create a chart to help investors digest and discover investment opportunities.

Next, I completed Duke University’s Data Visualization and Communication with Tableau, which really introduced me to the vast possibilities of data visualization. I learned to generate world maps, word clouds, bar charts, etc. using Tableau. I continued taking other courses related to data analysis and visualization – including two courses in the Data Science Specialization from Johns Hopkins University – and in less than one year, my data analysis was published on Bloomberg.com! I have since collaborated on an FAQ about analyzing S&P 500 earnings and forecasts, for which I’m actually listed as a co-author.

The data analysis skills that I learned on Coursera have reshaped how I approach business problems. Now, I have a clearer framework to analyze my data and present the idea to a wider audience. I still have a long way to go, but with the flexibility and affordability of courses on Coursera, I’m confident that I will be able to achieve my career goals. I feel lucky to be able to experience education from the world’s most renowned universities, without trading off my career opportunities.