Posted on by Californiacontrarian

Practically Speaking


If you were to advise your children/grandchildren what to take in graduate school, what would you advise them? The obvious hackneyed response is “Make sure that you go into something that you like doing.” No one would disagree with that. Practically speaking, one obviously shouldn’t get an MBA, if he/she really doesn’t like numbers. Likewise, practically speaking, for the most part, one should not go into medicine or dentistry, if he/she doesn’t  like interacting with people, as for the most part, that is what they will be doing all day.

However, these days the college loans and the paying back of these loans is a big deal. One may enjoy the arts, but it is wise to rack up huge debt with a Master’s in the arts . . . and as a result not be able to afford a house? I guess one could get a Master’s in Social Work, for instance, and hope that “President Warren” will forgive all education debts . . . not very realistic or practical!

As far as graduate degrees are concerned, which are best in terms of indebtedness compared to median earned income after three years? The average income at three years is a measure, albeit not perfect, which in essence helps determine how rapidly one’s education loans can possibly be paid off.

Consider the following graduate degrees, and rank them according to the median debt incurred vs. median income three years down the road:

-Law

-Medicine

-Dentistry

-Pharmacy

-MBA

-Master’s (science, engineering)

-Master’s (arts)

-PhD

Remember getting a degree in a lot of the higher paying occupations will also cost much more meaning more debt.

The following (median debt – median income at three years) is from Earnest.com :

For a Master’s (arts)($57k -$64k),Medicine ($200k-$204k), and Law ($122k -$121k). With these the salary at three years is about the same as the debt incurred.

For a Master’s (science, engineering) ($61k-$87k), a PhD ($65k-$91k), and an MBA ($$64-$115) the median income at three years is much better than the average debt incurred.

The worst bang for the buck . . . Pharmacy ($$132k-$122k) and Dentistry ($220k-$155k). Dentistry incurs the largest imbalance, and it’s not close.

So practically speaking, brush and floss regularly, starting now, as in years to come,  it will be significantly more and more expensive to go to the dentist.

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