Rising Debt in Graduate Education

Paying for College
1

<p>One of the most common bits of advise given on CC, is to limit your amount of debt, especially if you plan on going to grad school. The following report by New America reviews how the level of debt taken on by students have significantly increased since 2004.</p>

<p><a href="http://newamerica.net/sites/newamerica.net/files/policydocs/GradStudentDebtReview-Delisle-Final.pdf"&gt;http://newamerica.net/sites/newamerica.net/files/policydocs/GradStudentDebtReview-Delisle-Final.pdf&lt;/a&gt;&lt;/p>

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According to the data, in 2004, the median level of indebtedness for a borrower who earned a Master of Arts degree was $38,000. In 2012, that figured jumped to $59,000, after adjusting for inflation.

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<p>How many times have you read, "If you're planning on med school, keep your debt to a minimum!"?</p>

<p>Typical Debt of Borrowers:
MBA: $42,000
Masters of Science: $50,400
Masters of Education: $50,879
Masters of Arts: $58,539
Other Masters Degrees: $55,489</p>

<p>Law: $140,616
Medicine and Health Science: $161,772</p>

<p>
[quote]
The debt figures in this report reflect a borrower’s total debt at approximately the point they complete their degree. This includes debt incurred for undergraduate and graduate studies; loans from all sources, including federal, state, and private (although the largest share is federal); and accrued interest during in-school and other deferment periods that has been capitalized (i.e. added to the principal balance of the loan). It does not include interest that has accrued but not yet been capitalized and thus slightly understates borrowers’ actual debt burdens.

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2

<p>For those interested in a Masters of Science or Arts, I would suggest seriously considering going for the PhD, where your expenses are mostly covered if you are accepted. Whether this makes sense depends on your career goals, of course, but don’t think of the Masters as a stepping stone to the PhD. If you want the final degree, go for it from the beginning. This makes a lot of sense in the sciences, particularly. </p>

3

<p>It’s always been a tough row for grad students, as long as I can remember. But I’d always thought that those in the PHD programs were being funded, though barely above poverty standards if that. These days, I am hearing that kids are being deliberately gapped, and if they don’t family to help out, they borrow. Not a good idea, given that market for some of those programs. </p>