Beware of Academic Degrees With Minimal Financial Reward
Heading back to school for an advanced degree isn't always the golden ticket to a brighter future. Despite the generally low unemployment rate, the job market is tightening, with top MBA programs struggling to place graduates and software engineers facing concerning hiring trends.
It's no secret that many degree programs offer little, or even a negative return-on-investment (ROI). Studies show that nearly half of master's degree programs underperform financially, with 23% of doctoral and professional degrees following suit.
So, before you dive headfirst into a master's program, be sure to do your homework. Research post-graduation earnings data, the job market's needs, and the total investment required for your degree. Degrees in fields like art, for example, may offer personal enrichment, but may lack appropriate career options, leading to a poor ROI.
Several degree programs are often considered to have lower ROI based on general trends. These include fine arts, drama or theater arts, music, liberal arts, and humanities. These fields often require additional education or training to achieve higher-paying roles, which can increase the overall cost and reduce the ROI.
However, don't despair! Some advanced degrees can be quite lucrative in fields like dentistry, law, medicine, and more. The key is to choose your advanced degree program wisely, taking into account the potential for better job offers, higher earnings, or both over the course of your career.
Embracing alternative steps can also move the needle for your career. Look into certifications in your industry, focus on hands-on work experience, or explore networking opportunities and new challenges. Ultimately, opportunities can come from the most unexpected places, and many people end up in jobs unrelated to their field of study. Sticking with your current trajectory, coupled with determined efforts, might just be the key to success.
- Despite the concerns about the ROI of some master's degree programs and certain fields, such as fine arts, drama, music, liberal arts, and humanities, there are advanced degrees that can be financially rewarding, particularly in fields like dentistry, law, and medicine.
- Graduates from top MBA programs and software engineers are currently experiencing turbulent hiring trends, indicating that the job market is tightening, and the general consensus is that many degree programs offer little, or even a negative, ROI, with nearly half of master's degree programs underperforming financially.
- Especially in these challenging economic times, it's especially important for students considering higher education to meticulously research post-graduation earnings data, the job market's needs, and the total investment required for their chosen degree, as financial aid and student loans may not always be enough to cover the costs and secure a favorable ROI, especially for programs in fields like art that may lack appropriate career options.
