Is Going Back to School the Right Choice? Here’s What to Consider
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If you’re eyeing a career change, planning to start your own business, or simply want to level up your skills, you may be wondering if it’s time to head back to school for some additional education. This can be both exciting and overwhelming.
But before you start touring college campuses or checking out online degree programs, let’s talk about the elephant in the room: the cost. The financial implications of going back to school can make even the most motivated person hit the pause button.
However, going back to school doesn’t have to derail your financial goals or drain your savings account. With a little forethought, strategic planning, and a clear understanding of your options, you can likely find a way to invest in yourself without sacrificing your financial wellness.
Just like you wouldn’t buy a house without considering the mortgage payments, insurance, and potential maintenance costs, you shouldn’t commit to an educational program without understanding the full financial picture.
The Real Cost of Going Back to School
The sticker price of tuition is just the beginning, and, unfortunately, it’s rarely the end of your educational expenses. Beyond tuition, you’ll need to budget for textbooks (which can easily run $300-$500 or more per semester), technology requirements, lab fees, and parking passes.
Additionally, consider the opportunity cost of your time. If you’re cutting back work hours to attend classes, that’s real income you’re giving up. A part-time MBA program might cost $40,000 in tuition all-in, but if you’re working 10 fewer hours per week for two years, you could be looking at tens of thousands in additional lost wages.
Of course, this doesn’t mean education isn’t worth it. It just means you need to run the numbers honestly and with your eyes wide open. Calculate your total investment (tuition + other expenses + estimated lost income) and research realistic salary expectations for your target career.
Will the increase in earning potential justify the cost? How long will it take you to break even?
Exploring Your Payment Options
Perhaps the best-kept secret in continuing education is that you don’t always have to pay for it yourself. Several funding options are available specifically for working adults seeking to advance their careers or for graduate students returning to pursue additional degrees.
Start by checking with your current employer. According to a survey conducted by the Society for Human Resource Management in 2022, 48% of U.S. employers indicated they offered tuition assistance as a benefit to their employees. That’s substantial!
If employer assistance isn’t available and graduate school is what you’re after, research different graduate programs in your field. Many graduate programs offer assistantships or fellowships, which may cover the entire cost of tuition (plus other benefits like health insurance) in exchange for teaching classes, labs, or serving in tutoring spaces.
Other options include federal financial aid, scholarships, student loans, and 529 college savings plans. Fill out the FAFSA to see if you qualify for grants or subsidized loans. Visit organizations like Scholarships.com and Fastweb.com, and use their filters to look for scholarships specifically for adult learners, returning students, and career changers. (Professional associations in your target field may offer scholarships as well!)
Alternative Paths: Free Online Courses with Certificates and Skill Enhancement
Some of the world’s most prestigious institutions are giving away their expertise for free. Universities like Harvard, MIT, Stanford, and Yale offer free online courses with certificates through platforms like edX and Coursera. Many of the courses offered are the exact same courses taught on campus, and the certificates you can earn carry real weight.
For more targeted skill enhancement, industry-specific platforms like Google offer certificates in high-demand fields like data analytics and UX design. (Many employers value these certificates as much as traditional degrees!)
Local resources may also be just as valuable. Your area’s Small Business Development Center may offer free or low-cost workshops on everything from marketing to financial management. Chamber of Commerce events, industry meetups, and professional association conferences can provide networking and learning opportunities that rival expensive programs.
The beauty of these alternatives is that you can test the waters before committing to a major investment. Take a few free courses in your area of interest first. If you love it and see clear benefits, then you’ll be able to consider formal education with much more confidence.
Do You Actually Need That Degree?
Answering this question takes some digging and perhaps a little bit of soul-searching. Does your dream career actually require formal education, or have you just assumed it does?
Many fields that traditionally required degrees are shifting toward skills-based hiring. Tech companies like Google and Apple have dropped degree requirements for numerous positions, focusing instead on demonstrated abilities. Even some medical and legal support roles now prioritize certifications over degrees.
Before committing to a formal program, research your target industry. Look at job postings for roles you want. Do they say “degree required” or “degree preferred”? That one word makes a difference! If most listings say “preferred,” you might be able to break in through other routes.
Additionally, working with a coach or a mentor in your field of interest can be a game-changer. A seasoned professional can often teach you more about the day-to-day realities of a career than any classroom can. Plus, they’re building your network while sharing their expertise. Many professionals are surprisingly willing to mentor someone genuinely interested in their field. (You just have to ask!)
And sometimes, friend, the fastest path to skill enhancement is simply diving in. Volunteering, freelancing, or taking on side projects in your area of interest can build real experience that employers value more than classroom knowledge.
With that said, some careers absolutely do require formal education. You can’t become a licensed therapist or certified public accountant without meeting specific educational requirements. The key is knowing which camp your target career falls into before you invest.
Making the Smartest Choice for Your Financial Future
Deciding whether to pursue additional education is ultimately about aligning your career goals with your financial reality.
Here’s a simple framework to guide your decision:
First, get crystal clear on your goals. Are you looking to increase your salary, change careers entirely, or start a business?
Next, research the most direct path to that goal. Sometimes it’s a degree, sometimes it’s a certification, and sometimes it’s simply gaining experience in your spare time.
Calculate the true return on investment for each option. Factor in all costs (including opportunity costs) and realistic timeline expectations.
For example, imagine you have your eye on a $50,000 MBA program. You know having that MBA could increase your salary by $20,000 annually, giving you a clear payback period of about 2.5 years.
But if a $500 online professional certification could increase your skills and provide value to your company, potentially resulting in a substantial raise, that smaller investment with a faster payback suddenly looks pretty attractive.
Ultimately, you don’t have to choose just one approach. Many successful career transitions combine formal education with self-directed learning, mentorship, and hands-on experience. You might start with free online courses to test your interest, then pursue formal education if it proves worthwhile.
At Financial Fitness Coaching, we help clients evaluate major financial decisions like education investments. We can work with you to model different scenarios and ensure your educational choices support rather than derail your overall financial goals.
If you’re interested in getting a second opinion on your decision to go back to school, let’s talk. Schedule a free financial coaching discovery call today