Another Boston University Alumni and career adviser, Penelope Trunk, wrote this article about the futility of Dodging the Recession with Grad School. She lists deterrents for almost every graduate program, citing articles on dim prospects for law school graduates and the uncertainty of the current health care model's ability to finance future medical school graduates.
Although Ms. Trunk makes some noteworthy points, specifically on the importance of "real-world" work experience versus arbitrary grades, I disagree with her when she says graduate school is a way to delay adulthood. It certainly is for some people; I know some students in medical school who really should have taken some time off the reassess if it was the right path for them. However, graduate school can be a good way to make connections and network for research opportunities or a future job.
But the real question is whether or not graduate school is worth the debt most students would incur, whether a part-time or full-time student. I think it really depends on what you are looking to get out of graduate school. If you don't have a general idea of how you want to apply your degree, or you are lacking the passion to hit the books for another couple of years, you really should think twice about incurring more debt.
As of today, the student debt clock estimates that the total student debt in America is over $884 billion.
In fact in June of 2010, student loan debt actually surpassed total credit card debt in our country!
How did this happen??
The Project on Student Debt tells hundreds of stories from students who now owe $60,000; $100,000, $200,000 sometimes over $300,000 in student loans. Reasons for accruing so much debt ranged from loans with variable interest rates, having to default on payments due to unemployment, or going to a pricey "name-brand" university due to parental pressures.
[Share your own story on student debt in the Comments section below]
If you are confident with the future monetary rewards of your degree, and you have created a solid plan on how to finance your program of study, then go out there and follow your heart. But don't ever let anyone else pressure you into taking on financial burdens that you are not ready or willing to bear. Be honest with yourself and remember that whenever you take out a student loan for your expenses, you will have to pay it back at some point. The farther into the future that point will be, the more interest you will incur.
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Hey, Ramya.
ReplyDeleteThis post is a good follow up on the conversation we had last time we met! I totally agree that if grad school is necessary to advance towards your dreams, and you are certain of your dreams, then go for it...
Grad school as a way to delay the inevitable may actually prevent you from getting started on 'the rest of your life' due to huge loan payments. People used to say that it made sense to go to a state school for undergraduate work and let your employer pay for grad school and a private college/university. Is that still the buzz?
My personal advice to any incoming college freshman is, "GO TO WHICHEVER SCHOOL GIVES YOU THE MOST FINANCIAL AID." You should not care if is a private or state school.
ReplyDeleteI know people have differing opinions on this, but if you ask anyone of my friends who have graduated from college in 2010, they will tell you how hard it is for them to pay their loan repayments working part-time/temp jobs.
Your success in securing a job post-graduation is determined by your GPA, internships, campus leadership roles, work experience, networking etc. Any student can succeed in these irrespective of the institution they attend.
I think that the number of employers willing to provide full graduate school tuition reimbursement has declined. Most employers have stipulations that once receiving the degree, the employee must agree to stay with the company for a certain length of time. Sometimes the company will only pay for a degree that is directly related to the field you are currently working in.
I know universities will allow tuition remission but usually for full-time employees.
I plan to write another post on the tax credits that are available for students as we near tax day.
It seems to me that it would be near impossible to repay student loans with part time /temporary jobs, especially when recent grads would like to get on their lives with some sort of car for transportation, a modest apartment and a little left over for some entertainment.
ReplyDeleteMany careers require ongoing education/professional development of some sort to maintain certifications, licenses, etc. If you are lucky, your employer will reimburse for some of these costs. It certainly isn't easy getting started these days.