Think about it–getting a higher education costs major money, but it can also lead to a higher salary. According to the US Census, people with master’s degrees make 2.6 times as much as people with high school diplomas. But is the salary you would be able to get with a master’s degree high enough to justify the tuition spent on a graduate school education?

Someone with a bachelor’s degree in Computers on average makes $60,600. If that same person had a master’s degree his earnings could go up to $72,600. That is a difference of $12,000 a year. If your graduate school education cost $50,000, how long would it take you to recoup your investment? Just a little over 4 years, which is actually not bad.

For occupations where the earning potential is higher, such as lawyers and physicians, the pay off for an investment in a higher education pays off even more quickly (even though the cost of medical school can be much higher than your average graduate program). In general, the higher the salary is for the occupation you’re interested in the better investment a graduate degree is.

For fields where the pay is lower, such as teaching and social work, the jump in salary is much smaller, so it would take longer to recoup your educational investment. For some jobs having a master’s degree does not add much marketplace value, and folks with bachelor’s degrees make pretty much the same as those who got their masters. To top it off, those who went straight into the workforce after college have more years where they’re earning money.

Going to grad school can be a great investment in your future, but don’t assume that getting a master’s degree will automatically make you a more sought after job applicant or earn you more money. Do your research first. Basically the questions you want to ask to help you decide if going to grad school is the right path for you are:

Do I really need a master’s degree to do the job you want to do?

Would my degree pay for itself within the next 10 years?

Source: SmartMoney
Photo: via

MyRichUncle provides student loans and approaches the student loan industry from a different angle. They believe students are credit-worthy. Thank God!

Creditworthy borrowers have a history of borrowing responsibly and paying off debt in a timely manner. Your creditworthiness is typically determined by your credit history.
borrowers. We believe student loan debt should be taken seriously by borrowers and lenders alike. Students need to pay attention because their decisions matter now. MyRichUncle offers changes in the student loan industry that work better for parents, schools and most importantly, students.

MyRichUncle pays close attention to the obstacles students face. People seem to forget all about these things. This company has really helped and allowed me to apply once and let them do all the footwork for the loan application process. It’s not a given. MyrichUncle chooses its investments wisely. So I’m taking a wait and see approach to this whole process and will let you know.

If I quality MRU will give me the money I need to pay for Grad School, and in return I will pay my loan back based on future income. Rates for graduate students start at 0.1% per $1,000, for up to 10 years, with a maximum rate of 0.4% per $1,000, depending on such things as my major, my employer, and my academic performance. Amazing. Wish me luck.

Duke, Williams, Princeton, Davidson, Amherst, Colby, and Wellesley have decided to phase out loans in favor of grants for certain groups of students. And in its never-ending game of catch up, Yale’s president promises his own “major announcement” in January regarding financial aid overhaul. Better late than never.

The Ivy League Tuition Arms race means maybe we can keep the cost of education down for low and middle class families and instead of having to increase debt we increase opportunities for people who really do need it. Yale’s changes will surely result in increased applications and possibly expansion, but who knows time will only tell if the prime Ivy League Schools can continue growth or if more people will continue turning to cheaper alternative forms of education like MBA’s Online.