<p>gstein answered the question pretty well.</p>
<p>I would like to stress a few things that he mentioned in his response though. First off, a Ph.D. is a research degree, as you know. Probably 95% of the time, if a company is footing the bill for your Masters, it is not going to be a research-based Masters. That really doesn’t give you much help when it comes to Ph.D. admissions at all, so if you are eventually wanting a Ph.D., you should be very cautious when considering that route.</p>
<p>As for deciding on a Ph.D. itself, that is a difficult thing to do sometimes. If you are still on the fence, you should do the research-based M.S. and use it as kind of a trial run for a Ph.D. It should get your feet wet in the world of academic research, and by the time you are done after three or four semesters, you ought to have a better idea if research is really what you want to do. If not, then you just have a nice and marketable M.S. to get a job with. Of course, if you are absolutely sure you want to do research as a career, then starting right off working towards a Ph.D. can save you a couple semesters in the long run, so that is always an option too.</p>
<p>As for the work experience, it is really kind of a mixed answer. If you really want to get a Ph.D., having (or not having) a B.S.-level internship is going to have very little effect over how marketable you are at the end of your doctorate. That is going to come down to what industry connections you have made and, similarly, who your advisor is. The hitch in the plan here is that if you stop at an M.S., not having any prior work experience may hold you back just a little, but it will still be a much smaller effect compared to if you were doing a job search with only a B.S.</p>
<p>Most of the time, advisors do not let you work at an internship over the summer as a graduate student **unless you are on the SMART fellowship or something similar that requires it, or if the internship directly aids your actual research project back at school. For example, my coworker is currently working an internship at NASA Langley because it directly relates to the work we do at our lab (in fact his boss originally ran our wind tunnel and he works with the guy who designed it). In other words, don’t expect to be interning anywhere while you are a graduate student.</p>
<p>As for pay, it varies quite a bit depending on your situation. I know that around here, the typical salary for a first year Ph.D. student with a research assistantship only is roughly $20k plus tuition. You can greatly increase that by competing for and winning fellowships up into the $35k-$40k range. Of course, if you went somewhere with a higher cost of living or where the department has more money, you may make a high salary, but it likely won’t be too much more. In general, graduate students make enough money to survive and to have a little bit of fun on the side, but not much more unless they have a fellowship or grant of some kind. Graduate students are basically a group of overworked, underpaid research employees who also happen to be taking a full course load at the same time. It is not an easy life, but if you decide to go that route and like the area you are studying, it can be very rewarding. I am stressed out beyond belief at times, and yet I love my program.</p>
<p>When to work is kind of a complicated issue. You could work right out of undergrad, but it is very common for people who do that, despite the best of intentions, to never go back to being a full-time student again. Once you start seeing that paycheck coming in regularly, it is hard to give it up to go back to school. Factor in that by the time you want to go back to school, you may have other concerns like a wife and/or kids, a house, and all the other things that require money as you get older. It just makes it difficult at times. There have been many people that intend to go back to school and then don’t because of situations like this. Of course, you could go straight to the M.S. program and then work when you are done, but you do run the same risk of just losing interest. Still, people do successfully take both of those routes, it just doesn’t always work out.</p>
<p>So basically, a lot rides on how sure you are that you want to do research as a career. For me, I was very sure. I loved it when I got my hands dirty as an undergrad, and I love it even more as a grad student.</p>