The pros and cons of grad school: 12 points to consider

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There are a lot of reasons you might want to attend grad school: networking,  job prospects, prestige, knowledge, and maybe even the ability to keep the real world at arm’s length just a little longer.

On the other hand, graduate programs can take years to finish, and grad school tuition is no small expense. Before you commit to a program, it’s worth doing a little soul-searching. Carefully weigh these pros and cons of grad school. Then, consider your own motivations and career goals to help you make an informed decision.

The pros of going to graduate school

Better career opportunities

One of the biggest advantages of pursuing graduate studies is the potential for better career opportunities. Some professions, like academia, law, medicine, and even specific research-oriented fields, may require advanced degrees as prerequisites. Holding a graduate degree can improve your qualifications, competitiveness, and earning potential in these specialized fields.

More job security

Getting a graduate degree can improve your job security. 

According to Northeastern University, “Earning a graduate degree often enhances your professional credibility. In many fields, this can lead to increased trust from employers and colleagues, positioning you as a future leader or expert in your given field. This value can translate into greater job security.”

Getting an advanced degree can also help you pull off a career change if your current industry feels unstable. Reeducating to enter a steadier field is a reliable way to enhance job security.

Higher salary

In many fields, candidates with advanced degrees tend to get hired for more senior roles and may experience more rapid career advancement. For that reason, master’s and professional-level graduates usually reach higher salary levels than their less-educated counterparts. According to the U.S. Bureau of Labor Statistics (BLS), master’s degree holders make a little over $1,700 a week, while bachelor’s degrees make just under $1,500 a week. Those with doctoral or professional degrees can expect to make on average a little over $2000 a week. According to Bankrate, the average projected starting salary in the U.S. for the class of 2024 at the bachelor’s degree level is $68,516.Higher lifetime earnings

According to recent data from Georgetown University, the average lifetime earnings of a bachelor’s degree holder is about $2.8 million. That might seem like a lot — until you look at the earning potential of employees with some level of graduate education. Employees who’ve completed a master’s program tend to make around $3.2 million over their lifetimes, and those with a doctoral or professional degree can make $4 million or more.

Higher lifetime earnings

According to recent data from Georgetown University, the average lifetime earnings of a bachelor’s degree holder is about $2.8 million. That might seem like a lot — until you look at the earning potential of employees with some level of graduate education. Employees who’ve completed a master’s program tend to make around $3.2 million over their lifetimes, and those with a doctoral or professional degree can make $4 million or more.

Expertise and specialization

Graduate school allows you to dive deeper into a specific area of study, enabling you to develop advanced knowledge and expertise in your chosen field. This level of specialization can make you stand out in the job market, at work, in your industry, and position you as an expert in your field of study.

There are a few primary categories of graduate degrees:

• Master’s degrees: Many master’s degree programs, including Master of Business Administration (MBA) and Master of Fine Arts (MFA) programs, take one to three years to complete. They mark you as an advanced professional in your chosen career path and may be required for certain roles.

• Doctorate degrees: Most Ph.D. programs take three to six years to complete. They typically require original research and qualify you as an academic expert in your field.

• Professional degrees: Many professional degrees, including Juris Doctor (JD) and Medical Doctor (MD) degrees, require 2 to 5 years of coursework. They qualify you to work professionally in a particular career path, typically at the highest level.

Networking and connections

Graduate school offers excellent networking opportunities, access to top internships and fellowships, and chances to connect with like-minded individuals, professors, and industry professionals. These connections can lead to valuable collaborations, mentorship opportunities, job referrals, and a broader professional network that can benefit you throughout your career.

Personal and intellectual growth

Enrolling in a graduate program can offer a stimulating intellectual environment, where you can engage with advanced coursework, conduct research, and participate in academic discussions. This environment nurtures personal and intellectual growth, allowing you to push the boundaries of knowledge and gain a deeper understanding of your field.

The cons of going to graduate school

Cost

The cost of tuition is one of the biggest cons of graduate school. According to the Education Data Initiative, the average cost of a master’s degree is about $62,000, while the average research Doctorate degree brings with it $84,540 in education debt.

Before you resign yourself to these costs, first ask your employer if they have any education funding available for employees. Some companies are willing to sponsor an advanced degree if you can prove that furthering your own education will benefit the company in the long run. Some employers also offer student loan payment assistance programs, an employee perk that can help you cover your tuition payments retroactively.

If your employer can’t cover your degree, consider applying for federal student loans and institutional financial aid. Many graduate programs also offer Teaching Assistant (TA) opportunities, which allow graduate students to earn a tuition waiver and/or a small salary for helping to teach intro-level classes. However, many graduates still end up with significant student loan debt. According to Education Data Initiative data, master’s degree holders graduate with $69,140 each in debt on average, while medical professionals can end up with close to $200,000 in loans.

Keep in mind that these costs aren’t insignificant, but they’re worth it in many instances. If you can secure higher lifetime earnings, you’ll be able to repay your student loan debt¹ and then some. Before you commit to a program, be sure to calculate your potential return on investment (ROI).

Time commitment

Graduate programs typically require a significant time commitment –– often two to five years or more, depending on the field and level of study. That is because many graduate students balance coursework, research, and potentially part-time or full-time work, which can impact your personal and professional life.

Stress and pressure

Graduate school can be highly competitive and demanding, both academically and mentally. The rigorous coursework, research deadlines, and high expectations can contribute to stress and pressure. Before you enroll, it’s important to make sure you can handle the intensity and maintain a healthy work-life balance.

Because graduate school is such hard work, many students struggle with burnout. Keep in mind that if you’re unable to finish your degree, you’ll still be on the hook for your student loan payments — but without the advanced degree to help you nab a higher salary.

Limited industry experience

While a graduate degree can enhance your qualifications, it may not always be a substitute for hands-on work experience. Some employers prioritize real-world skills and industry experience over advanced degrees, especially in certain fields. It’s important to consider the balance between academic achievements and practical experience in your chosen career path.

No guarantees

In some industries, having an advanced degree can help you make more money and unlock more job opportunities. However, this isn’t necessarily guaranteed. Just because you have a graduate degree doesn’t mean you’ll automatically be entitled to your dream job. In most cases, you’ll also need significant industry experience, network connections, a strong work ethic, and a good attitude to reach your career goals. For some workers, taking the time to develop these other qualities may pay off more than taking years off of work to pursue higher education.

Learn more about Earnest graduate student loans

Before you decide to pursue an advanced degree, take time to consider the pros and cons of grad school. If you’re sure that graduate studies are right for you, your next step is to figure out how to fund them. First, plan to max out your allowance for federal student loans and apply for scholarships. Then, consider private student loans² as a way to cover any remaining gaps.

With Earnest, you can apply for private loans for grad school at a range of interest rates. Choose your loan term, skip a payment once per year³ without , and repay your loans on your schedule. Learn more and see how much you could save with our graduate student loan calculator.

Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

1 As was announced by the U.S. Department of Education (ED), federal student loans have resumed accruing interest starting September 1, 2023, and federal student loan payments were reinstated starting in October 2023. Please note that you may lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans (an example of which is the SAVE plan), Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan. See https://studentaid.gov/ for more information.

2 Before applying for private student loans, it’s best to maximize your other sources of financial aid first.  It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grants, and work-study opportunities.  2) Next, fill out a FAFSA(R) form to apply for federal student loans.  Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if you're struggling with your payments.  3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2.  For more information, visit the Department of Education website at https://studentaid.gov/.

3 Earnest clients may skip a payment through a one, one-month forbearance during a 12 month period. Your first request to skip a pay can be made once you’ve made at least 6 months of consecutive on-time full principal and interest payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Any unpaid accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid accrued interest to the outstanding principal as permitted by law and the terms of the loan agreement.  

Interest will not be capitalized on loans originated to Michigan residents under the Regulatory Loan Act of 1963. Please be aware that a skipped payment does count toward the forbearance limits.  Please note that skipping a payment is not guaranteed and is at Earnest's discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.