Thinking Of Grad School In Your 30s? Your Finances Could Seriously Suffer

Going back to school is an exciting opportunity that plenty of people hope to bring into their adult lifestyle. A return to the classroom in pursuit of a postgraduate education program is a path toward a new level of success. Additional education often leads to more open doors and the potential for pay raises that make all that hard work worth it. Some people opt for part-time educational options that allow them to chase new learning opportunities in the evenings or via weekend study, while others put their career on hold to advance it in the long term.

Grad school can create access to higher wages, as well as faster career progression. Per 2023 data from the U.S. Bureau of Labor Statistics, weekly earnings for master's degree holders was $244 more than those with a bachelor's degree ($1,737 versus $1,493). With an extra ~$1,000 in your pocket at the end of the month you can certainly achieve a lot, from increased retirement savings contributions (you're not alone if you're behind on your retirement savings, by the way) to a faster purchasing opportunity for those on the hunt to buy their first home.

But it's not all rosy. There are some dramatic pitfalls involved in the decision to return to school. Many of them are financial, making the tradeoff a little less singularly beneficial. What's more, stress levels can also spike when returning to the classroom, which can lead to other potential setbacks in your lifestyle. If you're thinking of starting graduate school in your 30s, it's a good idea to understand the full picture before pulling the trigger.

First things first, returning to school in your 30s can prove an incredibly valuable opportunity to transform your working years. A degree program or some kind of postgraduate certification can create plenty of mobility in your professional life. New learning opportunities can make you a better, more knowledgeable employee in your existing field or company, or they can create new options that bridge the gap between career arenas.

You might even tackle a new technical skill in a postgraduate course that will then allow you to completely shift focus and jump to a novel field that's more personally fulfilling. However, even if a program is aimed at staying in a field or with a particular company, grad students who return later to school note they connect better with the course material, enjoy far better focus on their learning objectives, and often find they can apply their new skills right away.

The enhanced level of opportunity that nearly any new educational attainment provides can't be discounted. Going back to school opens up your mind to new perspectives, teaches you new skills, and can make for incredible new earning opportunities.

That's the good; unfortunately, though, there are plenty of drawbacks to consider carefully before deciding to return to school in your 30s. Chief among them is the financial opportunity cost that any new college degree program will bring into the fold.

A new degree opportunity takes a massive commitment. Regardless of whether you're returning to the classroom full time or not, the mental load of studying as a graduate student, along with the time commitment that comes with it, are no joke. This means that much, if not all, of your free time will be spent brushing up on required reading, exploring discussion topics in depth, and preparing for the next lesson. Grad school is a lot of work, and it'll eat into your free time tremendously. It's also quite costly. The average degree program at a public school will set you back around $59,000. This may be funded through a student loan, but this option isn't in everyone's plans.

Further, if you opt to enroll as a full-time grad student, you'll in all likelihood be leaving your day job. For some, the trade is worth the risk because at the other end of the process, you will reenter the workforce with better earning power. However, in the interim, you may have to do without a regular salary, potentially straining your finances to their breaking point. Trading regular earnings today for a potentially higher salary tomorrow might work for some people's long-term plans, but it won't be valuable for everyone, and some hopeful students simply won't be able to make the trade-off work, regardless of its long-term benefit.

Lastly, it's impossible to speak about college education without acknowledging the financial elephant in the room: student debt. According to the Urban Institute, 70% of students graduating with a bachelor's degree are on the hook for some form of student debt by the time they earn their degree.

As a college-educated individual in your 30s considering a return to the classroom, chances are you're already carrying some educational debt yourself. Similarly, returning to school and funding the opportunity through new federal or private student loans can add to an already taxing repayment obligation. It's, of course, far more complicated these days, with new political interest in reducing student borrowing burdens and resulting legislation taking aim at reducing those burdens. That said, it is unwise to assume new student loans taken out to fund your ongoing educational pursuits will simply be wiped out in a wave of new forgiveness programs. This may ultimately come to pass, but banking on help from the government is a great way to set yourself up for disappointment (not to mention a huge student loan bill). (Read about student loans and what refinancing means for loan forgiveness.)

The debt you might decide to take on in a return to school can play a huge role in how financially valuable a new learning opportunity ultimately is. If you're stuck paying off a sizable student loan burden for decades, you might eventually come to regret your decision. In an August 2024 survey by WalletHub, 61% of the college students surveyed said that they regretted the amount of money they borrowed to pay for their education. Adding yourself to this statistic might not create the happy ending you seek.