Is Grad School Worth It?

A graduate degree could lead to higher pay and career advancement, but that’s not always the case. The cost of graduate school and how you pay for it play large roles in determining whether a degree is worth it.

Ask yourself these essential questions to decide if obtaining a master’s degree is right for you.

Would grad school boost your income?

Wages tend to increase with higher degrees. According to the U.S. Bureau of Labor Statistics, the 2024 median annual salary was:

• $80,236 for people with just a bachelor’s degree.

• $95,680 for people with a master’s degree.

• $122,876 for people with a professional degree, like law, medicine or business.

• $118,456 for people with a doctoral degree.

The type of degree also matters when figuring out your earnings potential. Here are the top-paying jobs that require a master's degree, according to May 2024 figures from the Bureau of Labor Statistics.

The school you choose also impacts your earning potential. Some grad schools report higher starting salaries for their graduates than others, for the same type of program.

For example, the median base salary of graduates with a Master of Business Administration (MBA) from the Tuck School of Business at Dartmouth was $175,000 for the class of 2024, according to the school's website. But at Claremont Graduate University Drucker School of Management, the median starting salary for MBA graduates was $76,500 in 2022-23.

Would grad school make you more employable?

Master’s degree holders tend to have lower unemployment rates than those with a bachelor’s degree. According to the Bureau of Labor Statistics, the 2024 unemployment rate was:

• 2.5% for people with just a bachelor’s degree. 

• 2.2% for people with a master’s degree. 

• 1.3% for people with a professional degree, like law, medicine or business. 

• 1.2% for people with a doctoral degree. 

A lower unemployment rate could indicate a greater chance of remaining employed during times of economic uncertainty. It could also mean simply having more options — and greater leverage in the labor market.

There are a few other times when grad school could boost your employment prospects:

• You’re trying to break into a completely new industry. 

• Your target profession requires a graduate degree to enter, like law or medicine. 

• Your industry typically requires a graduate degree to advance like many education and government-related roles. 

Here are some of the fastest-growing jobs that require a master’s degree, according to the Bureau of Labor Statistics. These jobs are based on the projected number of openings and projected growth rate from 2024 to 2034.

How much would grad school cost — and could you afford it?

To really understand if a graduate degree is worth it, weigh the benefits against the costs.

The average cost of graduate tuition and fees for the 2021-2022 academic year was $12,596 per year for public institutions and $28,017 per year for private schools, according to the most recent data from the National Center for Education Statistics.

Graduate school tuition can vary significantly by school, degree type and program length, among other factors. If you go to an in-state public college, you could also get a resident tuition discount.

And outside of tuition and fees, don’t forget living expenses if you’re going back to school full time. Many colleges include cost of living in their total cost estimates.

Pennsylvania State University, for example, estimates students will spend $14,474 on food and housing during the 2024-25 academic year — on top of tuition and fees.

» MORE: Financial aid for graduate school: Who qualifies and how to apply

Make a plan to pay for grad school: 6 steps

How you pay for graduate school can also impact the total cost. Consider the following strategies, in order:

1. Compare costs at different schools. Grad school costs vary widely, depending on factors like location, degree type and program length.

2. Look for part-time programs. Though you may be in grad school longer, a part-time courseload can give you more flexibility to work at the same time. Any income you earn while in school can go a long way toward limiting student loan debt.

3. Apply for gift aid. Scholarships, grants, work-study and fellowships are all flavors of “gift aid” — or college funds that you don’t have to repay. Submitting the Free Application for Federal Financial Aid (FAFSA) is the first step to unlocking gift aid. Also research scholarship opportunities, and contact your school about fellowships and teaching assistant jobs.

4. Research employer tuition assistance. Employers may pay a portion of your tuition, either as a reimbursement or by paying your school directly. This benefit usually comes with stipulations, however. For example, you may be required to study a topic related to your career field or continue working for a number of years with the company after graduating.

» MORE: How to pay for grad school

5. Borrow federal student loans. Federal loans are the best option if you need to borrow. Compared to private loans, interest rates tend to be lower, and you have more flexible repayment options, borrower protections and the opportunity to qualify for loan forgiveness.

If you start grad school before July 1, 2026 you are eligible for both direct unsubsidized student loans and graduate PLUS loans. Direct loans have a borrowing cap, but PLUS loans are available up to your cost of attendance.

If you start school on or after July 1, 2026, you can only access unsubsidized federal student loans.

» MORE: How Trump’s ‘big, beautiful bill’ impacts student loan borrowers

6. Consider private student loans. Private student loans are best used to fill in any grad school funding gaps that remain after exhausting all other options, including federal student loans. Private loans offer fewer flexible repayment options, and approval depends on a credit and income check. In some cases, you may need a co-signer.