In today's economic climate, education not only offers a bit more job security to those who have an advanced degree, but also offers a safe haven for those willing to return to the classroom to get it. While it's unclear the exact effect the economy has on the decision to return to grad school, the evidence does seem to indicate some correlation. Law schools, business schools and other types of graduate programs are experiencing record numbers of applications. Law school applications are up almost 18 percent for the 2002-03 academic year, according to the Law School Admission Council, (LSAC). The Graduate Management Admission Council, (GMAC), 2002 Application Trends Survey reports that 84 percent of the 74 full-time programs surveyed experienced an increase in applications. Seventeen percent of these same programs saw application volume increase by more than 20 percent.
It seems to be a safe conclusion that at least some portion of this increase is due to people opting to pursue a graduate degree who may not have previously considered one. After all, if you aren't working now and have reason to believe your situation isn't changing anytime soon, it might be the perfect time to learn new skills and increase your marketability. Medical schools are the exception as the entrance requirements are so substantial that application numbers are seldom affected by upturns and downturns in the economy.
There is another factor at work right now that makes grad school an especially attractive option. On July 1, 2002, federal student loan interest rates dropped to a record low 4.05 percent. Keep in mind that federal student loans were already the best loans out there prior to the rate drop. The result: There's no time like the present to borrow money for school. Interest rates on student loans are at their lowest point in years. This adds up to huge savings over the your course of study and into your repayment period. For more information about your loan options, read Lessons On Loans.
Of course, just because members of your peer group seem to be heading back to school in record numbers doesn't mean you should too. While grad school may be a safe haven during troubled economic times, if you have a secure job and things seem to be going well, leaving now might not make a whole lot of sense. Before you jump on the grad school bandwagon, weigh your opportunity costs and make sure the sacrifices are worth it. You should look beyond money when making this decision - opportunity costs also include things like postponing the purchase of a house, delaying children, etc. Of course for some career fields, such as law, an advanced degree is required for entry. If it's your goal to be a lawyer, you'll have to accept the opportunity costs of earning your J.D. Other degrees, like a Masters in Business Administration, may be less of a barrier to entry in your desired field.
Also, record numbers of applicants mean a lot more competition. Let's face it, it's tougher to get into the top business, law and graduate programs now than it was when the economy was doing great and job opportunities abounded. If you don't need the grad degree to enter an industry or progress in the one you're already in, it might be worth it to wait until the competition slows down.
The decision is yours. We recommend that you write out a list of your individual pros and cons, and outline your short- and long-term goals. With this information in hand, you should be prepared to make the best decision for you.
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