If you thought grad school would guarantee a great job and a solid pathway to paying off your student loans, think again.
The unemployment rate in 2012 was 4.5 % for undergraduate degree holders and 3.5% for those with graduate degrees, according to the U.S. Bureau of Labor Statistics.
But beyond employment stats, here are three other reasons grad school may not be worth the price.
1. You could be limited yourself by focusing on one subject matter
You went through undergraduate school for four years, maybe even five or six. You changed your major a couple of times before figuring out the course of study that fit you best. Grad school seems like the next logical step to deepening your knowledge of that subject.
Of course, if you're studying to be a doctor or lawyer, it'd be beneficial to you and your future clients to hone in on your specialty. But for other fields, could be limiting yourself by investing all your resources into one area of expertise.
The U.S. Census Bureau shows that 73% of graduates have jobs unrelated to their major, while almost 40% of recent grads have jobs that don't require a degree at all.
2. You could become too qualified for the jobs that are out there
The reason we go to college is ultimately to land a good job. Some people choose grad school to find a better job.
Employers can look at you and your degree in three different ways:
You've got the right background for the job
You're over-qualified
You're under-qualified
Of course, the ideal perspective would be the first.
You've worked hard and long to get to where you are. You're not expecting to be anything less than perfect for the job. On the contrary, your hard work in school might not get you the job you want.
Some companies are still in recession mode and don't offer positions because they aren't ready to pay a graduate degree holder what they're worth.
If the majority of your time was spent studying, chances are you didn't intern or volunteer in your field. Now, you don't have enough experience. To some employers, it might seem that you didn't take the time to find work or you're simply unemployable.
3. You're already in debt –– why make it worse?
The average student loan debt was $27,253 in 2012 for undergraduate students. If you're like the majority, you contribute to that statistic.
A two-year master's degree program can cost between $80,000 and $120,000 depending on the institution and field. BLS reported that graduate degree holders make approximately $250 more per week than undergraduate degrees.
In other words, as a graduate degree holder, your debt possibly quadrupled and your weekly earnings increased by less than 25%. That's not going to make paying off your student debt any easier.
If you spend four to six years in undergraduate studies and another two to four years in graduate school, you should hope that you find a job in your field. Otherwise, you're back to where you started, wasted a good number of years and put yourself into a deeper sea of debt.
Is that extra 1% chance of finding a job worth it?
Cecillia Barr is a personal finance writer and blogger for Debt.org - America's Debt Help Organization.
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