During college, it never even occurred to me that I wouldn’t go on to graduate school. I didn’t even consider any alternative path forward, like getting a job, doing a volunteer year, or even traveling abroad. Ever since I can remember, I wanted to go to seminary, so it always seemed like the natural next step.
Now, don’t get me wrong, I have no regrets about my seminary education. It’s been beneficial every step of the way — even when I went into a career that wasn’t 100% related. However, looking back with the lens of a financial educator, it’s interesting that I never considered the cost or what tangible benefit it might have on my future.
Whether you’re considering a post-college degree or an undergraduate study program, this week’s article is designed to help you determine whether or not investing time and money in that degree will be worthwhile for you in the future.
What does the degree mean to you? For some getting a degree is a means to an end; for others it's the fulfillment of a life-long dream; and for most it's somewhere in between. Take a few minutes to consider the personal value of this degree. For me, going to seminary was the fulfillment of what I’d dreamed about as a child. For other friends of mine, getting their Masters or PhD is about achieving the highest degree in their field. And for others, it’s an investment in future earning potential or advancement possibilities.
Tip: People for whom this degree does have deep personal meaning sometimes make the mistake of stopping after this first question. Be sure your dreams are grounded in reality by answering the rest of the questions below before you start investing financially and otherwise in your next degree.
What does the degree actually cost? Tuition is only one part of the equation. Don’t forget about these: living expenses if you’re pursuing the degree full-time; moving if you need or want to be on site for the program and it's not nearby; child care; any costs to your career for being out of the workforce or stepping back to focus on school; loss of retirement benefits (like pension or matching dollars into your 401k); loss of health care benefits; any financial burden you might be placing on your partner.
Tip: This activity might feel a bit deflating in the moment, but it’s better to consider the costs upfront than to be surprised later. If you find your enthusiasm starting to wane, feel free to do this in stages: out-of-pocket expenses in one sitting; potential long-term costs in another.
How will you pay for it? One of the first places to look is your employer: Can they help pay for some or all of the degree? Does the cost vary depending on whether or not you do the courses online or in-person? Would it be more beneficial to spread the program out and do it part-time? Once you’ve reduced the cost of the program, what amount remains? Do you have money saved you could put toward school costs? Are there scholarships or grants available?
Tip: If you’ll need to take out loans to complete your degree, take a look at what loan forgiveness programs might be available to you after graduation. You can also use the Loan Simulator on StudentAid.gov to see how these loans might impact you and simulate different repayment options to see if you’ll be able to afford the repayment process.How will this degree benefit you in the future? The immediate payoff is obvious if it’s required for your current position. But what about down the road? It’s unlikely you’ll want to stay put for the rest of your career. Are there other positions that might use this degree as well? Talk to people in your desired field and even your current (or potential) employers to see what doors it might open.
Tip: Keep in mind, a full-fledged degree isn’t the only way to increase your knowledge and skills. There may be shorter programs, certificate programs, or even specific classes you can take to propel your career forward. Listen closely to what’s been most beneficial to people in the field, and what expertise employers seem to value most.