The Master Benefit
Employees with a master’s degree earn up to $21,000 per year more than those with a bachelor’s.
By Kathleen Ganster

The weak economy has many people looking at graduate degrees as a means of increasing their earning potential and employability. But is the extra time and expense worth it? Yes, say the experts – especially when many veterans can use their benefits to help offset some, if not all, of the costs.

Employees with master’s degrees last year earned an average of $65,364 per year, compared to $53,300 for workers with a bachelor’s degree, according to the U.S. Bureau of Labor Statistics (BLS). Over a 40-year career, that’s a difference of $482,560!

Data compiled by the U.S. Census Bureau in 2008 showed the gulf to be even bigger. Employees with a post-graduate degree earned an average of $79,342, compared to $58,062 for those with a bachelor’s degree – a difference of $21,280 per year, or $851,200 over 40 years.

It isn’t just the increased earning potential. Earning a master’s also helps increase the likelihood of employment. “An increasing number of fields require master’s degrees for entry-level positions,” said Stuart Heiser, manager of government relations and external affairs for the Council of Graduate Schools. “We are finding that is especially true for health sciences careers.”

Peter Dorhout, vice provost of graduate school at Colorado State University, agreed, also pointing to statistics from the BLS. “They stated that from 2006-2016, the number of occupations that will require a master’s degree will increase by 20 percent, suggesting that employers will be looking for additional education when hiring,” he said.

Additionally, those with master’s degrees are more likely to be employed or find employment, even in difficult times. “Salary is important, but what is on folks’ minds right now is unemployment,” Dorhout said. “By getting a master’s, they help to ensure that the next time we have an economic downturn, they have added protection against unemployment.”

Veterans Benefit More
Since veterans are often eligible for benefits to assist with tuition costs, Dorhout said the benefits of an advanced degree are even greater. “With the GI Bill, veterans may pay very little to get the degree,” he said. “The additional salary that they will make over their lifetimes more than makes up for the time and effort to obtain the degrees.”

Veterans often bring skills and experience to the classroom that helps them in their studies, Dorhout said, including organizational, problem-solving and time-management skills, and the ability to work in stressful situations.

Annie Dolan, assistant director of master’s admissions at the Tepper School of Business at Carnegie Mellon University, agreed. “The skills acquired in the military are a perfect match for an MBA. And with the military benefits, there really is no reason not to get an MBA or master’s,” she said.

CMU, like many schools, is a Yellow Ribbon school, which can enable veterans to obtain a degree for practically nothing. Dolan said CMU waives the application fee for veterans, a common practice for colleges and universities. She recommended veterans interested in advanced degrees talk to the admission and veteran’s advisors on the campuses they want to attend.

Dolan said the median starting salary for those with an MBA from Tepper is more than $100,000. “And that doesn’t include any signing bonuses or benefits,” she said.

Another advantage to the advanced degree is that people usually start out at a higher level of responsibility at a company. Additionally, employees tend to receive promotions faster with an MBA, according to Dolan.

The areas of specialization with advanced degrees are so varied that many veterans can find a perfect match to support their own skill sets and areas of interest. And Dolan believes college is the perfect transitional phase between the military and civilian life.

Part-time studies, flex-time studies and distance learning opportunities make earning an advanced degree for busy professionals easier than ever, according to both Dorhout and Dolan. “Just because you aren’t near a campus or can’t relocate doesn’t mean you can’t take classes. Over 25 percent of our students alone are distance-learning students,” Dorhout said.