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I'm considering getting a Master's to further my education, and potentially switch into a more specialized field where having a Master's is basically the only way to enter it. The job pays 12k more a year give or take than the job I have now in the same metropolitan area. With my job I can get tuition reimbursement to help cover the cost of the Master's, but mostly I plan on paying out of my own pocket to avoid loans. So I would need to save for some time in order to accomplish that. My student loans from my Bachelor's is already paid off.
While I like the job I have now, I don't think I can see myself doing it for the rest of my life. The job is related enough to my current job where my current background would actually be related and may even give me a competitive edge. I do believe the new field would be more exciting and fulfilling.
I'm considering getting a Master's to further my education, and potentially switch into a more specialized field where having a Master's is basically the only way to enter it. The job pays 12k more a year give or take than the job I have now in the same metropolitan area. With my job I can get tuition reimbursement to help cover the cost of the Master's, but mostly I plan on paying out of my own pocket to avoid loans. So I would need to save for some time in order to accomplish that. My student loans from my Bachelor's is already paid off.
While I like the job I have now, I don't think I can see myself doing it for the rest of my life. The job is related enough to my current job where my current background would actually be related and may even give me a competitive edge. I do believe the new field would be more exciting and fulfilling.
Sounds like all the right reasons to go. You should do it.
Indeed. That's a straightforward calculation, involving of course interest rate of the loan, opportunity cost of the money, cost in time (yours, absolute) plus soft costs of the stress and etc., tuition, and housing if-applicable.
I went through this for my MBA from an Ivy (Johnson) more than ten years ago, pre Great Recession's arbitrary "start", though not by much. The math made sense, as in my line of work an MBA really helps and is mandatory for bigger management consultancies, better the school = more opportunity, typically.
I was interested in brand recognition, too. It starts with Harvard (HBS) and works down from there, Kellogg, Sloan, Wharton, Ross, and a host of other "Top 10" then "2nd Tier" or Top 20, bunch of others right behind. 2nd Tier was good enough for me, and that too is a decision.
Variables like the economy will screw with the calculation, of course. I came out into an abyssal job market, but had plenty of experience so definitely vaulted up a couple levels, then shortly after several more. It's been gravy ever since and trying to break into executive ranks now. How does that calculation work for OP?
Staying in one place, as I did, is a mixed bag. Often you need to go where the work is, which I did twenty years ago but perhaps should have once more. Seattle is a gold mine, though, for work and other investments.
I'm considering getting a Master's to further my education, and potentially switch into a more specialized field where having a Master's is basically the only way to enter it. The job pays 12k more a year give or take than the job I have now in the same metropolitan area. With my job I can get tuition reimbursement to help cover the cost of the Master's, but mostly I plan on paying out of my own pocket to avoid loans. So I would need to save for some time in order to accomplish that. My student loans from my Bachelor's is already paid off.
While I like the job I have now, I don't think I can see myself doing it for the rest of my life. The job is related enough to my current job where my current background would actually be related and may even give me a competitive edge. I do believe the new field would be more exciting and fulfilling.
Whatever you'd be paying out monthly in student loans, you'd have to make at least that much more at your job (per month) just to break even. You also have to account for the time you put into a master's program. A full-time MBA is usually a 2-year process and that's one of the "easier" master's degrees to get in terms of LOE. Other master's degrees can take a lot longer depending on discipline. You didn't say what field you're in so I'm going to assume it's an MBA.
You should also know that not all master's degrees are created equal. I see plenty of candidates in my field who have master's degrees from unimpressive no-name institutions that, on further research, seem to be little more than credential factories or third-rate state universities desperate for full-freight tuition dollars from international students. If the program you'd be applying for isn't a top-tier program, you may end up with a pile of debt that does nothing to further your career.
Additionally, many companies that offer tuition reimbursement expect you to stay with that company for N number of years after you've completed your studies...or they expect you to pay them back. It's not a situation where you can get $10k in reimbursement and hit the bricks as soon as you get your degree. Nope. You'll need to check on that as well, and factor that lag time into your calculations since you'll now have your master's but be stuck in the same job at lower pay...and have student loan debt on top of that.
Additionally, don't assume that you can write off interest on student loan debt. There's a limit on how much of it you can actually write off, and if you make too much money you're SOL.
Lastly, this is debt that will haunt you for the rest of your life (and your co-signer's life, if applicable). Make sure that you have a plan in place to pay it off even if the degree doesn't open the desired doors. You can't get a refund on a master's degree. You can't discharge the debt in bankruptcy except for extremely exceptional situations, and even then you'd have to have the right judge. You can defer, sure...and modify your payments...but that interest will continue to accrue. You could make $20k in payments and still barely move the needle on the debt.
It depends on the program, it depends on the degree, but by and large it is worth the investment.
Let's ignore the math behind that particular salary increase for a minute. I get opportunities simply because I have a masters degree. Many people assume just because you have a masters, you are more qualified. I will also be offered higher salaries for the same job than someone without a masters. I'm not saying that's right or wrong, but the degree alone carries value, regardless of skill or experience.
You will be seen as overqualified for lower level jobs, that's not a problem for many, but I suppose some might see that as a downside.
The one thing I'd recommend is to pay attention to the rank and reputation of the school itself as much or moreso than the degree. The network of alumni you get with a master's degree will do as much (or more) for your career as what you learn when studying. A masters from a no-name school might not be worth it.
If you will ultimately end up making more than you end up spending, it's worth it. That simple.
I am looking into becoming a teacher. It would add ~$12k onto my student loan debt, but base pay around here for a teacher with an MA is more than $12k above what I make. Simple calculation.
Not necessarily immediately. Sometimes it can take a little bit of time to see that return. The point is that you’ve attained a ‘terminal’ degree with the goal of boosting your earning potential beyond what it is currently. But again, you may not see immediate returns; it could occur over time.
An MBA isn't a terminal degree. A DBA is.
And yes, its value may be compounded over the course of your career...but it might not be either. In the meantime, you have to service your student loan debt regardless.
With my job I can get tuition reimbursement to help cover the cost of the Master's, but mostly I plan on paying out of my own pocket to avoid loans. So I would need to save for some time in order to accomplish that.
If it makes sense to get the degree, it probably makes sense to take the loans. You're losing $12k in immediate salary (plus experience and a one fewer year of peak earnings at the end of your career) for every year you put off starting the degree program to save money for it.
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