A recent study from SmartAsset revealed that graduate degree holders in the Dallas-Fort Worth area can expect a salary bump of nearly $17,000 per year in terms of lifetime earnings.
For many individuals holding a bachelor’s degree, the decision to go on to graduate school can be a challenging one. The temptation to dive directly into the workforce and earn a living can be overwhelming, especially considering the significant financial investment graduate degrees often require.
As previously reported by The Dallas Express, tuition rates for both undergraduate and graduate degree programs are on the rise across the country. Even with the recent decision by some Texas university systems to freeze tuition rates, costs can be prohibitive. Additionally, the freezes were limited in scope.
For instance, in August, Texas A&M’s board of regents froze tuition for in-state undergraduate students but not for those hailing from out of state or students pursuing graduate degrees.
With graduate degrees setting people back anywhere from $30,000 to $120,000, the study from SmartAsset, a New York-based financial technology company, asked the critical question:
Is it really worth it?
To answer the question, SmartAsset used U.S. Census Bureau data from 2021, focusing on individuals aged 25 and older in 281 of the United States’ largest metropolitan areas.
The results varied considerably across different metro areas, with Silicon Valley showing an annual income gap of $48,067 between holders of undergraduate versus graduate degrees in favor of the latter. While it was the largest difference found, the smallest was actually a negative figure. Holders of graduate degrees earned $2,796 less per year on average than holders of bachelor’s degrees in Tuscaloosa, Alabama.
Nonetheless, the national average salary bump recorded by graduate degree holders compared to their counterparts with undergraduate degrees was $16,000, or an estimated $484,000 over the course of one’s career.
Dallas-Fort Worth landed near the average, with graduate degree holders typically receiving salaries $16,859 higher than those with just a bachelor’s degree.
More specifically, employees with graduate degrees earned an average annual salary of $82,553, whereas those with undergraduate degrees earned $65,694.
While the study suggests that where people plan to live is important in helping to decide how long to stay in higher education, it leaves out the differences that likely exist between different industries.
The financial benefits of a graduate degree can vary widely based on an individual’s chosen field.
For instance, the U.S. Bureau of Labor Statistics found that master’s degrees in business, education, health care, and STEM fields led to significant salary premiums. On the other hand, graduate degrees in logistics, administration, museum curation, aviation, and design reaped smaller returns.
Investigating the earning potential in any given field is a vital part of deciding whether pursuing a graduate degree is worth it, the federal agency suggested.
