That is depending on what you’re going to school for, of course. A new study done by the New America Foundation shows that students are drowning in debt because of grad school. As someone who has gone through grad school, I was fortunate enough to have done it while working at a university and receiving a free education. But I can’t imagine leaving school with a MBA and $80K worth of debt and living off of ramen noodles for years.
The typical debt load of borrowers leaving school with a master’s, medical, law or doctoral degree jumped an inflation-adjusted 43% between 2004 and 2012, according to a new report by the New America Foundation, a left-leaning Washington think tank. That translated into a median debt load—the point at which half of borrowers owed more and half owed less—of $57,600 in 2012.
The increases were sharper for those pursuing advanced degrees in the social sciences and humanities, versus professional degrees such as M.B.A.s or medical degrees that tend to yield greater long-term returns. The typical debt load of those earning a master’s in education showed some of the largest increases, rising 66% to $50,879. It climbed 54% to $58,539 for those earning a master of arts.
According to the Department of Education, 63 percent of graduate borrowers that entered repayment in 2012 chose a 10-year repayment plan, with the balance of borrowers repaying over a longer time-frame.
And if you’re lucky, you’ve secured a job after finishing school, and even luckier if you don’t end up on the unemployment line shortly thereafter.
Education isn’t cheap in the United States, and it’s a crying shame.
Clutchettes, are you currently in debt because of grad school? Do you think your degree was worth it?