Mark Schneider investigates the value of a college master’s degree.
According to the College Scorecard, in the 2021–22 school year, around 1.2 million students were enrolled in master’s programs, and over 880,000 master’s degrees were awarded. The number of master’s degrees conferred was lower than the number of bachelor’s degrees awarded in that year ( just over two million) but more than four times the number of doctoral degrees awarded. Moreover, the number of master’s degrees granted was 15 percent higher in the early 2020s than in 2010—exceeding growth in the number of bachelor’s degrees (12 percent) and doctoral degrees (14 percent) awarded during that time. …
… A lot of money is at stake for students and universities. For students, pursuing a master’s degree requires a commitment of a year or more of full-time study and even more of part-time work. There is a large financial commitment (an average of $17,000 per year in tuition alone), and there are substantial opportunity costs to spending so much time on studies.While master’s programs can be highly lucrative for universities, they can leave students worse off. … [M]any master’s programs have a high ROI. But about half of all master’s programs have a negative ROI, which can cost students dearly.
Even this quick look at wage outcomes shows that the average ROI of a master’s degree is lower than rhetoric often suggests; and, more importantly, the variation in outcomes across programs is substantial.Choosing the right master’s program can lead to high wages that justify pursuing the degree. Choosing the wrong program can lead to a loss of time and money for students.
Given the high stakes of program choice, policymakers have a responsibility to make easily available the ROI of master’s programs—and, indeed, all post-secondary programs. But perhaps the most important dictum is “buyer beware.” Researchers and policymakers alike have a responsibility to provide easier and more intuitive access to wage-outcomes data with the goal of helping prospective master’s students make better choices.
