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Is Grad School Worth It?
Graduate school can be worth it if the degree substantially boosts your career and earnings potential.
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NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.
Anna Helhoski is a senior writer covering economic news and trends in consumer finance at NerdWallet. She is an on-air contributor and producer of Money News segments for NerdWallet's Smart Money podcast. She is also an authority on student loans. She joined NerdWallet in 2014. Her work has been syndicated in news outlets nationwide including The Associated Press, The New York Times, The Washington Post, The Los Angeles Times and USA Today. She previously covered local news in the New York metro area for the Daily Voice and New York state politics for The Legislative Gazette. She holds a bachelor's degree in journalism from Purchase College, State University of New York.
Laura McMullen assigns and edits content related to personal loans and student loans. She previously edited money news content. Before then, Laura was a senior writer at NerdWallet and covered saving, making and budgeting money; she also contributed to the "Millennial Money" column for The Associated Press. Before joining NerdWallet in 2015, Laura worked for U.S. News & World Report, where she wrote and edited content related to careers, wellness and education and also contributed to the company's rankings projects. Before working at U.S. News & World Report, Laura interned at Vice Media and studied journalism, history and Arabic at Ohio University. Laura lives in Washington, D.C.
Eliza Haverstock is NerdWallet's higher education writer, where she covers all aspects of college affordability and student loans. Previously, she reported on billionaires and investing for Forbes in New York, and she also covered private markets for PitchBook in Seattle. Eliza got started at her college newspaper at the University of Virginia and interned for Bloomberg, where she spent a summer writing a feature story about plastic straws. She is based in Washington, D.C.
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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.
NerdWallet editorial ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
2.89-17.99%
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 8/11/2025. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
Variable APR
4.24-17.99%
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 8/11/2025. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
NerdWallet editorial ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
2.89-17.49%
Lowest rates shown include the auto debit discount. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 8/11/2025. Loan amounts: For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Variable APR
4.37-16.99%
Lowest rates shown include the auto debit discount. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 8/11/2025. Loan amounts: For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
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.
Occupation
2024 median annual wage
Nurse anesthetists
$223,210.
Computer and information research scientists
$140,910.
Political scientists
$139,380.
Physician assistants
$133,260.
Nurse practitioners
$129,210.
Nurse midwives
$128,790.
Mathematicians
$104,350.
Economists
$115,440.
Elementary, middle and high school principals
$104,070.
Source: U.S. Bureau of Labor Statistics, 2024.
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.
Occupation
Projected number of new jobs
(2024 to 2034)
2024 median pay
Nurse practitioners
50,000 or more.
$100,000 or more.
Substance abuse, behavioral disorder and mental health counselors
50,000 or more.
$50,000 to $74,999.
Physician assistants
10,000 to 49,999.
$100,000 or more.
Occupational therapists
10,000 to 49,999.
$75,000 to $99,999.
Speech language pathologists
10,000 to 49,999.
$75,000 to $99,999.
Health care social workers
10,000 to 49,999.
$50,000 to $74,999.
Source: U.S. Bureau of Labor Statistics
What about bachelor's degrees?
Still, there are plenty of jobs where you can thrive with a bachelor’s degree.
For example, the following occupations all offered a median pay of $100,000 or more in 2024 for workers with just a bachelor’s degree, according to the BLS:
Art directors. Computer systems analysts. Facilities managers. Industrial engineers. Materials scientists. Personal finance advisors. Project management specialists. Sales representatives. Social scientists.
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.
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.
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.
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.
