Master Degree ROI Shocker!

Ok, so I just have to share some shocking and depressing news I just received from my HR manager. Mind you I teach at a community college, in one of the worst paying states for such, but I just found out how much my salary will increase with my Master's degree. I've been asked by my Dean to go ahead with my plan for my Master's degree and was told it will ensure me being able to teach in a new programs being developed with my degree/experience in mind and current demand. I will be the only one in my work area with a master's degree when I finish, and the other two instructors have no desire to get theirs.

So that being said I inquired about how much my salary will increase when I finish. Are you ready? Mind you they will only contribute $500 towards my cost of me getting my Master's degree and the program will cost me $18,000 plus books and 18 months of hard work for a whopping $756 increase in annual salary! OMG! Is that just wrong or what? I got a $500 annual increase for a BS degree that cost a lot less money and time to get. So now I have to really consider this move. My school will give me a one time $1000 bonus if money is available, unlikely, so factoring in my other costs to graduate it could take me 25+ years to recoup my initial investment. I'm 47 and we haven't had any type of raise in 2 years and have been told it could be 5 years before we see cost of living or merit increases return.

So has anyone else faced this type of ROI investment issue? If I could get a return in 10 years, no question I would go for it, but at this rate I would be retiring before it was recouped. My retirement is based on my last 3 years salary, so if this doesn't do anything to really boost my salary potential, what are my other options? I love teaching so hate to think about leaving for private industry, but I know I can make much more money now, as is at BC/BS or another company.

How has anyone else dealt with this type of issue? I'm just honestly dumbfounded by this revalation. I'm finishing a second BS degree in another subject area next month and had planned on doing a Grad Certificate in another subject area while working on my Master's but those will only get me more money if merit pay is opened back up and my Dean feels it is deserved. If merit pay isn't approved for another 4-5 years, I don't see how they can retro back this far to justify a merit increase. This is the first time I have been faced with this type of issue and I just had the wind knocked out of my sails. I was supposed to start grad school in Sept. now I truly don't know. I know I would prefer to keep teaching but if they expect and want a Master's that won't make sense for me financially, is it worth it? Due to downsizing at my hubby's company and me coming off of almost a year of unemployment I'm really worried about building up our savings and retirement, which looks pretty tattered right now! If anyone has some sage advice in this great community of educators I would love to hear it!
__________________

 

I would look for less-expensive alternatives or scrap the idea, unless you really want the degree for more than the potential ROI.

Alternatively, are there other things that you could use the degree for to help the ROI? Teaching online for example?

 

I'm just spit balling here, it's just a thought and I'm not entirely sure how feasible it is, but the government's new program forgives the remaining student loan debt after a 10 year period for people that work in higher education. Could you do the program funded by student loans, invest the money you would have been paying for tuition out of pocket, then set up a payment plan upon completion of the degree that is based on your annual salary. You will be earning interest on the cash you invested (this only works if your return is higher than the interest rate on your student loan). After 10 years, assuming you make each monthly payment and remain employed in higher ed or some form of public service, the balance will be forgiven.

 

You could also use the masters to get adjunct work and earn extra in that sense. That is extra work but the ROI is there for you.

 

Is it feasible to keep your current job without earning or at least working on a master's degree? If not, the ROI on the master's would be a lot higher than $756.

 

And have you considered consulting (I know a few CC faculty that do that during semester breaks).

Just FYI California State Community Colleges now require that most new faculty hires have a masters degree in the subject they teach.
http://www.collegeofthedesert.edu/fs/dept/hr/Documents/MinQualHandbookMarch2010.pdf

You can compare the salary difference for a BS vs MS at my local CC here:
Salary Schedule

 

more education can open up more opportunities for you down the road that you are not aware of at this point, and I agree you should see if you can get you employer to participate more finacially for the degree, but - if you look at that level of education from three perspectives

personally, professionally, academically

you're employer is only one third of these three areas, the other two are on you. So - I don't think I was it was discussed in this thread, but other than a nominal financial gain, are you personally and academically interested in the program you're looking at?

Oh, I would also think more education in your field would give you some job security with the additional credential.

 

Depends on where you teach:

FinAid | Loans | Public Service Loan Forgiveness

Shawn

 

Thanks for all the great feedback. I will attempt to respond to all here.

I can keep my current job without getting a masters, but I won't be able to teach in a new program being developed as it is transferable program and SACS requires that it be taught my Master's level faculty.

The new program being developed is in the UG area of the Master's I wanted, MHA.

I have spent 30 years in and around the medical field and medical insurance and reimbursement so I would love to get my MHA for my personal satisfaction and professional standing as well as career growth.

With a master's I can qualify for supervisory positions at work, none currently exist, but talk is that some may be created soon.

Another new program is also down the road next year that will also be transferable so to teach in that healthcare informatics program I will also need the MHA along with the grad cert in informatics I was planning.

I can do grad certs in both areas, but neither will count towards a pay grade increase or meet the SACS requirements. They may open me for a merit raise if and when they are opened up again and my Dean feels I'm worthy.

The grad school doesn't have any grants or scholarships available and my school only provides $250 per year in professional development funds. I may be able to get another $250 but not much more than that. We have some program grants and even though the new program would benefit from my MHA, since I would be the only faculty member with such a degree, but if the faculty member benefits personally, I wouldn't qualify.

I may try to talk to my Dean to see what other options may be available, but so far this is all I have found.

I know the MHA will open a lot of other options and I'm not opposed to teaching online and doing adjunct work, once I'm done with school. I was juggling full time teaching and teaching in 2 part time programs all while going to school for the last year. It was just too much, but we are coming out of boht my husband and I being unemployed, at different times, in recent years so we are trying to replenish funds. That is one reason this realization hit me so hard.

I can complete the MHA in 18 months and start to see some return fairly quickly. I also hadn't thought about doing consulting work, althought my employer would have to approve working anywhere else. They have a pretty strict policy for full-time faculty so it doesn't interfer or cause conflicts of interest. With my professional certification along with degrees I may be able to find some well paying interesting work! I do some consulting already, but never thought about the different options this MHA may add.

Thanks for allowing me to sound off and bounce some ideas off of you all! I love teaching and want to keep teaching and advancing within my school. This is such a great resource!