Salary you are EXPECTING to make after your grad degree?

[Miskina]

Well I'm not planning on having children anytime soon, and I'll be 26 when I'll get my masters degree, so I think 50K will be more than enough when I'll start my career. And it will be a lot more than what my friends will make after getting their (French) masters degrees. I don't want to make tons of money (otherwise I would have chosen a different field), I just want to live without worrying about my rent and my bills.

[Miskina]

By the way MPPGal, you made a good point: it's true that we can't compare net salaries in France and in the US... I should probably do some research on the US system.

[vincehoward]

Good lord. I currently live in Boston, one of the most expensive housing markets in the country, and currently make a little under $50K. I live in a two-income household, but I'm able to pay my half of the rent on an apartment in a great area, get all the groceries I need, spoil my little foodie heart at nice restaurants, and save a good chunk for retirement. I also can buy stuff like new clothes without crying over pennies. In other words, $50K is a perfectly fine income, assuming you aren't blowing all your cash on entertainment or rent. (Seriously, people, do not spend more than 30% of your income on rent.) I'd obviously like to earn more, but it's silly to scare people into thinking that they will be gnawing on ramen if their starting salary is at that level. Children are more of a concern in terms of budget,, but I'm not planning on popping any out for a few years.

 

I'm assuming you don't have to make loan payments for undergrad/grad school, right? That really changes everything. You can say you're living comfortably now because you aren't shelling out $800+ a month to repay your debts. Some people would also like to have kids around 28-30 which also adds quite a lot to the heap in a major city. DC/NYC rent is also a bit higher than Boston which makes a difference too. Living comfortably in a secondary city like Boston or Chicago, and especially an even lower tier city like Atlanta or Houston is possible on 50K + minor loan payments.

 

My main point is that I think it's nuts someone would even consider taking 100K in loans for a degree they think will only earn them a $50,000 starting salary. 

Edited March 26, 2013 by vincehoward

[biscuits]

Boston actually has the second most expensive housing market in the country right now, and one of the highest rental markets. It's behind NYC, but then rent in NYC is obscene by any standard. Protip: if you're ever writing policy that will be consumed by the public, you may not want to piss them off by referring to their homes as secondary or lower tier. I realize you're not trying to be offensive, but in the words of Archer: phrasing!

I don't have any loan payments at the moment, which is a good point, but it's a budgeting matter like anything else. I personally think you'd have to be deranged, from a financial perspective, to take out $100K of loans for any MPP program - regardless of previous loans that you may be carrying. Even $50K in loans would be pushing it.

Kids and the timing thereof are a completely personal choice. If you want kids at a young-ish age, they need to factor into your budget. I think that's true whether you're deciding on grad school, a new job, or even a mortgage.

ETA: eh, this was grouchier than I meant to come across. Having lived in several different regions of the country, I get very tired of the tunnel vision on the east coast which seems to shrink the world down to NYC, Boston and D.C (with San Francisco thrown in for funzies). Go west (and south), pioneers! I promise you'll find real people amongst the cattle and corn.

Edited March 26, 2013 by biscuits

[flyingjellyfish]

I agree that it's very important to carefully consider taking on a lot of debt. And personally I'm not going to take on anywhere close to $100k. But I currently comfortably make higher than required payments towards paying off my undergrad loans, save each month, pay my pretty high rent, and have money left over to fuel my espresso addiction.

Also, I view grad school as a worthwhile investment. Who knows? Maybe I'll still be making $50k immediately after I graduate but I feel that in the long run my masters degree will be money well spent in terms of salary and (more importantly to me) job satisfaction. And yep, no kids for me just yet.

[123seekay123]

.Also, I view grad school as a worthwhile investment. Who knows? Maybe I'll still be making $50k immediately after I graduate but I feel that in the long run my masters degree will be money well spent in terms of salary and (more importantly to me) job satisfaction. And yep, no kids for me just yet.

I think the questions are about current loan status, and as you said, job satisfaction and no kids in the near future. If it were only about money, I'm sure many people on the board could make more than 50k without grad school, but it might not be the job they want. 

[DaniCM]

I live in DC with only a bachelors and my first job out of school I was making $50K. My rent is pretty cheap for DC, as I live in a group house, but I also have a car payment and $500/month for undergraduate loans. I manage just fine - although I'll admit saving money is a bit difficult, but that's because I go out every weekend. 

 

My undergrad debt is $45k and I expect another $50k or so for grad school. It's not ideal, but working in policy and analysis, you really can't progress past about $60k without a master's. Given my work experience and education, I expect to make $70k out of grad school, with a lot more potential for salary and position mobility thereafter (mobility I would not have with just a bachelor's).

 

That said, I understand Vince's aversion to $100K+ debt with a lower starting salary. I just think that if you're smart about it, budget, and really try to get as much aid as you can from your grad school, the investment in higher education pays off huge in this field (at least in the long term). Without a master's, there's not much of a point of getting into policy or analysis. Certainly not a think tank. Otherwise you really will be stuck around $50k/year, which wouldn't be realistic for having a family in one of the big cities, which are where the main policy hubs are.