Archive · 4 Aug 2025
Is Graduate School Worth It for New Grads?
Thinking about going to college after finishing your first degree?
It can be tough to find a job right now.
More people are thinking about getting more education, like a Master's or PhD, because it might help them get a better job.
Going to graduate school can give you a bigger paycheck, but it also costs a lot of money.
You might have to borrow money, and the loans could take a long time to pay back.
Before you sign up, figure out if the extra money you'll make will be worth the cost of the loans.
Make sure you can afford the payments.
Recent changes to student loans will also limit how much money people can borrow and make repayment terms less favorable.
The job market for new grads is challenging, prompting consideration of advanced degrees.
Unemployment for recent grads (22-27) rose to 4.8% in May, up from 4.3% in May 2023.
Graduate degrees often come with an 18% earnings premium compared to bachelor's degrees.
Student loan debt has increased significantly, with borrowing limits and repayment changes.
Experts suggest considering total debt and potential earnings when deciding on graduate school.
- Who
- Recent college graduates considering advanced degrees.
- What
- The value and costs of pursuing graduate degrees, especially in a tough job market.
- When
- Recent data highlights current job market trends, particularly for new graduates.
- Where
- The United States.
- Why
- To improve employment prospects and increase earning potential, amid economic uncertainty and rising debt.
Potential Benefits of Graduate School
Potential Drawbacks of Graduate School
Job Market Advantage and Earning Potential
Potential Benefits of Graduate School
Pursuing graduate studies provides a competitive advantage in the job market.
Potential Drawbacks of Graduate School
It leads to higher salaries over time.
- Recent Grad Unemployment
- 4.8% (May data)
- Overall Unemployment Rate (July)
- 4.2%
- Earnings Premium (Master's)
- 18%
- Median Borrowing Increase (2000-2020)
- 50% (inflation-adjusted)
- Loan Repayment Recommendation
- No more than 10% of discretionary income
- New Loan Limits (Grad)
- $100,000 (Master's), $200,000 (Professional)
- Undergrad Loan Interest
- Accrues during grad school deferment