When deciding which graduate program you will pursue, you need to make several decisions, each with implications for how much your degree will cost and how much it will benefit you when you finish. Among the decisions you will make and questions you should ask are:
- Which field of study will you pursue?
- Will you obtain a graduate certificate, master’s, doctoral or professional degree?
- Will you be a full-time or part-time student and will you be working while obtaining your degree?
- Will your current employer provide financial support to earn the degree?
- What is the total cost of attendance?
- What is the “opportunity cost” for you to earn the degree, particularly if you are a full-time student?
- Will you rely on federal or private student loans to pay for your degree and, if so, what is the average debt for students who utilize loans to pay for a similar degree?
- What salary are you likely to earn once you obtain the degree?
Evaluating Offers and the Cost of Attendance
The cost of attending graduate school includes direct costs charged by the university like tuition, fees, and (sometimes) health insurance. It also includes indirect costs such as room, board, books, travel, loan fees, and personal expenses.When evaluating admissions offers, make sure you compare the cost of attendance for each program including:
- Tuition and fees, including loan fees if you obtain a federal or private loans to pay for your degree
- Financial aid in the form of loans (money you have to pay back) or scholarships, grants, fellowships, assistantships, and employer support (money that you do not have to pay back)
- Cost of living in the area in which you will live while you obtain your graduate degree
- Other considerations include the date that you will receive funds from the institution, particularly for grants, fellowships, and assistantships. You may incur expenses before the funds are remitted to you. As such, you may need savings to cover some expenses before you receive funds from the university.
- Other costs including health insurance, books, moving costs, and travel to disciplinary conferences (if applicable)
Use the GradSense budget calculator to help you compare what admission offers will mean for you. If terms are unclear, check out the glossary to make sure you understand what you’re being offered and what your obligations may be.
Cost of Living
Rent, food, transportation, and many other costs vary dramatically depending on where you live. If you plan to relocate for grad school, especially if you’re doing so internationally, it’s important to consider how far your savings or stipend will go in your new home.
Debt and Salary Calculator
Use the GradSense debt and salary calculator to get an estimate of what you can expect to owe (if you take on debt) and what future salaries, based on occupation, you may earn.
April 15 Resolution
The April 15 resolution is an agreement among the signatory graduate schools to provide applicants until April 15 to make a decision on offers of admission that also include financial support. Check if universities you are interested in are April 15th signatories.
Opportunity Cost
Graduate school can be a great opportunity, but it also comes with costs. If you step away from full-time employment to get a graduate degree, you’ll miss out on earning a regular salary during that time. You’ll also temporarily lose any employer-provided benefits you may have, such as health insurance, retirement contributions, and potential performance bonuses. The gap in work experience may also delay your career progression compared to peers who remain in the workforce.
Additionally, students often incur significant expenses, including tuition, fees, and living costs, all of which can add to long-term debt if financed through loans. The time, cost, and energy devoted to graduate studies may require that you change your lifestyle.
However, these opportunity costs must be weighed against the potential long-term benefits of graduate school. A graduate degree opens doors to specialized career paths, higher earning potential, and access to professional networks that can offset or even surpass the initial sacrifices. The key is to carefully assess the short-term costs relative to your long-term career and financial goals to determine if graduate school is the right investment.
You can think about this using the calculations below:
Opportunity Cost = (Lost Income + Lost Benefits + Education Expenses) − Expected Long Term Gains
- Lost Income = Current Annual Salary x Years in Grad School
- Lost Benefits = Annual Value of Benefits (e.g., health insurance, retirement contributions, bonuses) x Years in Grad School
- Education Expenses = Tuition + Fees + Living Costs during Grad School
Expected Long-Term Gains = Post-Graduation Salary Increase over Time