Professional aspirations are driving more students to graduate school today, and nearly two-thirds believe that an advanced degree is the new minimum education standard for any professional occupation.
According to “How America Pays for Graduate School,” the new national study by Sallie Mae and Ipsos, an independent global market research firm, almost all graduate students (95 percent) said that an advanced degree is necessary to enter, advance, accelerate, or remain competitive in their chosen career.
The cost is less of a factor in the enrollment decision than at the undergraduate level, as more than eight in ten respondents based their enrollment decision on the academic offerings of the institution, prestige, location, campus culture, or other personal considerations. However, eight in ten graduate students said they took on more responsibility for their study payment decisions than they had during their undergraduate studies.
“It is human nature to plan for what you value, and that includes graduate school. Today’s students see graduate school as their ticket to a successful and prosperous career, and most have a plan to pay for the advanced degree before enrolling,” says Raymond J. Quinlan, president and CEO of Sallie Mae. “That planning pays off: the vast majority are confident in the financial decisions they have made about how to pay for graduate education.”
How much did they pay? Students spent an average of $24,812 on graduate school in the 2016-17 academic year, and more than three-quarters of them (77 percent) paid for it, at least in part, by taking out loans. Funds borrowed by students covered more than half of the cost (53 percent), while money earned by students, including income and savings, accounted for 24 percent. Grants, fellowships, scholarships, and tuition waivers represented only 15 percent, while 8 percent of graduate school costs came from funds borrowed or contributed by parents or others.
The study also reveals that scholarships and aid are less available to graduate students than to undergraduates, representing only 15 percent of graduate school costs.
To view the full report, visit: www.salliemae.com/research/how-america-pays-for-graduate-school/
As a graduate degree continues to become the educational norm, students will keep planning and finding creative ways to cover the costs.
Source: StatePoint