The first month of the year is almost through and everyone is still motivated about implementing their resolutions.
A friend of mine started the year by making an announcement – she’s gone back to school full time … for the 4th time.
My response has been the same the last 2 times – ‘enough already!’
There’s a process to her going back to school every few years. She gets a job, decides that she’s not moving up fast enough, gets bored, or is between jobs and decide that the best thing to do is go back to school. As a result, she has two bachelor’s degrees and one master’s and is now going back for a certificate.
With each degree or certificate, she’s convinces herself that she’ll make more money when she comes out… so the student loan is ‘worth it’.
She has over $50,000 of student loans not including the money she’s had to borrow from family.
It’s not only this debt that makes me tell her to stop going to school, it’s these three reasons:
1) Opportunity Cost
The words ‘opportunity cost’ remind you of Economics 101 and your mouse is probably inching closer and closer to the red X button at the top.
WAIT, WAIT! Let me explain.
The cost of her going to school constantly isn’t just her student loans, but the income she’s NOT earning because she’s not available to work full time.
In total, she’s interrupted her career 3 times, that’s 5 years (2 years for the second bachelor’s, 2 years for the masters and 1 year for the certificate).
The average annual salary for her original line of work (because she’s changed it a few times) is about $40,000. Let’s be conservative and say that she would have stayed at that amount over the entire 5 years (no raise, no bonus, no promotions), the opportunity cost of her going to school is $200,000!
This wouldn’t be so bad if her belief of making more money every time she graduates was true, but it’s not. Each time she comes out of school, she seems to be starting at the same pay level.
2) Over-educated and Under-employed
Let’s step away from my friend’s situation, I’ll give you an example of a candidate who contacted me last year to help him find a job.
After getting his undergrad in Accounting, he went right back and completed an MBA thinking that it would make him more marketable and start at a higher salary. He came out ready to fight off companies who were desperate to hire him.
That didn’t happen.
Companies couldn’t hire him as a new graduate and he didn’t have the experience to warrant the salary and position he wanted. So they passed.
Having an MBA without the experience to back it up wasn’t helpful to his career at this point. In fact, more and more MBA programs now require 2 – 5 years of related work experience in order to even be considered for their program.
In the end, he decided to remove the MBA from his resume and got an entry-level job to ‘get his foot in the door’.
3) Ageism
Whoever says there’s no discrimination when it comes to hiring practices is living in the land of unicorns. Discrimination is rampant!
Going back to my friend’s example, each time she comes out of school and starts from the bottom up, she’s competing with entry-level workers who have also come out of school for the first time. Unfortunately, many companies feel more comfortable hiring someone early on in their career for junior-level positions for the following reasons:
- They wrongly assume, these workers will stay in that position longer without getting the itch move up or leave the company.
- They can get away with paying them slightly less.
I’ll give you another example:
A few months ago, I was recruiting for a position and presented two very strong candidates with similar experience. One had been working for 3 years and the other had made a career change after working 10 year in another industry. He also had about 3 years in this new career. To be honest, I think he may have been a better fit for that position.
My client decided to go with the younger candidate because he would have more innovative ideas. Of course this is probably not true, but once hiring managers make a decision, it’s close to impossible to change their minds.
Going back to continue education isn’t always the wrong thing to do. But going back because you can’t find a job, hate your job or think that you’ll automatically get a much higher paying job when you come out isn’t realistic.
Have you thought about going back to school?
If so, what are you reasons?
{ 2 comments… read them below or add one }
I’ve gone back to school a few times, but I did so while working full-time. Of course the scheduling was nutty, but I’ve realized great returns from managing it how I did–I’ve been promoted, have earned more, and have built a great resume in the process.
I should note that my Masters degrees were pursued as personal interests using Tuition Assistance Program(s) through my employers. Luckily, they all mesh together for what I do during the day in a way that has built me an expansive skill set that has opened doors I’d never imagined as options for my career.
This is the only way I’d advocate going back to school, but I realize it may be impossible for some who have other responsibilities. I’m actually starting night classes for an additional certificate this evening! But of course, I’m utilizing a killer TA program through my part-time job and am only paying ~$40/class for 4 graduate credits instead of $1,900. It pays to be creative!!
I agree that this is the best way to go back to school. Having an employer take care of part or all of your tuition is a big help. Most importantly though, going part time gives you the chance to keep your job. Coming back to the workforce after being away at school isn’t easy… especially when that schooling has very little to do with past experience.
Good for you and congrats on being so creative
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