When considering graduate enrollment, questions regarding Return on Investment (ROI) should be addressed. How likely is it that the educational investment will pay off?
To help us better predict graduate school ROI, The Bureau of Labor Statistics (BLS) tracks income by educational attainment. For 2020, BLS data set the median annual salary difference between those with a Bachelor’s degree and those with a Master’s degree at $12,480.
- Bachelor’s annual income: $67,860
- Master’s annual income: $80,340
According to BLS numbers, it appears completing a master’s degree should show a signficant return over time.
For example: Investing half the monthly salary increase over the course of a 40-year career at 8% could result in a return of more than $1.5 million. If educational dollars are spent on quality programs in high-demand areas, potential earnings could be much higher. While there are no guarantees of individual success or riches, data clearly support those who elect to pursue a graduate degree.
An investment of under $30k could return $1.5 million or more, making graduate education worthy of serious consideration.
Master in Business Administration MBA (30 credit hrs) – $29,500
Master in Integrative Leadership MILE (30 credit hrs) – $14,220
Master of Arts in Communication MCOM (30 credit hrs) – $14,220Master of Nonprofit & Civic Leadership MNCL (30 credit hrs) – $14,220
Master in Public Service and Safety Leadership PSSL (30 credit hrs) – $14,220
Master in Education M.Ed. (30 – 45 credit hrs) – $11,340 to $17,435
Strategies for reducing tuition and fees could accelerate ROI. One example is employers who offer tuition reimbursement as an employee benefit. $5,250 per year may not sound like much, but consider the fact that most master’s programs allow students to take up to seven years to complete their degrees.
Many employers offer up to $5,250 per year in tuition reimbursement for college courses. Under section 127 of the tax code, the IRS allows your employer to deduct the expense, and the benefit is not taxable to you as an employee. Troy Onink — Forbes
If your employer is willing to invest $5,250 in your education on an annual basis the gains associated with completing a master’s degree could come at a relatively low cost. However, employer tuition reimbursement is just one of the options available for reducing the cost of graduate education.
Students may also work as graduate assistants in exchange for tuition. Along with free or reduced tuition, GAs may earn a stipend and in some cases, room and board may be included in their compensation packages.
Increase your salary potential by earning a graduate degree from Drury University with the possibility of little or no long term debt. Sound good?
Contact Drury’s College of Graduate studies today and start investing in your future.
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