Opinion: Master’s programs: Cash cows for universities, financial burdens for students

Discussion in 'General Distance Learning Discussions' started by Tireman 44444, Jan 28, 2025.

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  1. Tireman 44444

    Tireman 44444 Well-Known Member

    Not a distance learning subject per se, but it does beg the question of master's and doctoral programs being cash cows...


    Brown University recently announced a $46 million deficit for the 2025 fiscal year that could exceed $90 million by 2026. To address this issue, the institution plans to expand its master’s programs. It hopes to double the number of residential master’s students and increase online enrollment to 2,000 learners within five years. While this strategy may alleviate Brown’s financial woes, it raises critical questions about the broader implications of such expansions in higher education.

    Opinion: Master’s programs: Cash cows for universities, financial burdens for students
     
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  2. TEKMAN

    TEKMAN Semper Fi!

    No offense to anyone; most of the programs are cash cows. Universities and Colleges create a separate program online using Blackboard; the school doesn't have to spend money on physical classrooms, hiring an Adjunct Professor to teach a class for $4,000.00 while charging each student $2,000. Each class has about 30 students, about $60,000 in tuition and fees.
    You could learn better using Udemy, Coursera, EdX, etc., than attending these programs, but you need a solid university name in your degree diploma.
     
  3. Rich Douglas

    Rich Douglas Well-Known Member

    I have a bachelor's in business and an MBA. I don't recall ever hearing the term "cash cow" being used in a negative sense. And I don't think it's an accurate use in this topic, either.

    Yes, having establised infrastructures means additional programs can be offered for marginally higher costs. So? Every business does this, whether they are for-profit or not-for profit.

    As for master's and doctoral degrees, they've been around for centuries, so the product doesn't seem to be a problem.

    If we're talking about degree inflation, that's been around for decades. David Hapgood called it Diplomaism in a book by the same name, published 54 years ago.

    Finally, pricing vs. what it costs to deliver isn't relevant. Market forces--good and bad--set prices, not costs. Costs determine margins and whether or not a particular offering is profitable or brings an expected rate of return.

    Sorry, but I'm not seeing a problem, a new phenomenon, or even a new take on an old one.
     
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  4. TEKMAN

    TEKMAN Semper Fi!

    Well, it is not a problem...it is just supply and demand. That is the beauty of Capitalism. Some might think it has negative impacts on higher education, but that is just an opinion. According to the dean of Boston University's Questrom Business School, she and her team created an Online MBA for less than 1/3 of the cost compared to an on-campus MBA. Its Online MBA is a product and it provides the product to make money for those who need it. Each cohort class has about 200 to 400 students, and has three professors to teach. My best friend and his wife graduated from the program, and they have positive experiences. It is still a cash cow/cash flow for Boston University.

    People even sell air for $115 each. Business means money, and higher education is not an exception. :)

     
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  5. nosborne48

    nosborne48 Well-Known Member

    The number of U.S. law schools offering LL.M. degrees has, it appears, gone up sharply in recent years. These programs tend to be quite expensive yet I question whether they confer any significant benefits upon the student who receives the degree and pays the bill.

    The idea that a school might be exploiting its students sounds absurd in this context but there it is. To me, it looks like exploitation.
     
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  6. Rich Douglas

    Rich Douglas Well-Known Member

    Exploring why people pursue such things--and the outcomes they actually realize--could become the basis of an interesting doctoral thesis in education. I could see a qualitative study using interviews of recent admissions, writting materials, and extant theories to induce a grounded theory around the pursuit, then create a measurement tool from that to administer to graduates. Fun, if you could gain access to entering students and also near-term graduates (say, between 5 and 10 years after graduation). (As opposed to a longitudal study of admissions-to-graduates-to-5/10 years out. More interesting, but that's a long time to remain in one's PhD!)
     
  7. nosborne48

    nosborne48 Well-Known Member

    I suspect that the results would be depressing. Many seek LLM. degrees from prestigious schools to "buff up" their resumes and gain access to higher level opportunities. If you can believe the legal recruiters, this doesn't work.
     
  8. Acolyte

    Acolyte Well-Known Member

    When I was in undergrad, my final advisor - a kid about 10+ years my junior at the time gave me some good advice - he said, "you should never pay for a graduate degree. Find someone who will pay for it. An employer, a scholarship, the college, etc." And I've thought about that a lot. When I started my first Master's, I was freelance, I looked for a tons of scholarships, but wasn't finding anything that fit. So I paid for the first part of it out of my pocket - but the second half (well, about 40%) was covered by my employer. I could have waited a bit longer to start the program and dragged it out over two calendar years and it would have been 100% covered, but I wanted to get the program over with. My current M.Ed. will be 100% covered by my employer, I will have some incidental costs that I covered out of pocket - a subscription to Scribbr, a couple of books I bought on my own, the original application fee, transcripts, etc. But we are talking a couple hundred dollars out of pocket for the entire degree program. If you want to write off your education expenses, start a business - write off the education expenses as training and development expenses. Of course, if you start a business you have to actually make some money at it, but still...
    Also, you may be eligible to write off some education expenses outside of claiming for a business - but I think that is income dependent.
     
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  9. nosborne48

    nosborne48 Well-Known Member

    I've heard similar advice from many others who tend to be in academia. I think there's truth in it but a distinction might be drawn between "academic" or "research" degrees and "professional" degrees. In my case, for instance, the LL.M. gave me specific technical background to prepare me for a highly specialized practice. I paid for it, after making sure it was the least expensive accredited option, because the chances of getting anyone else to pay for it were negligible.
     
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  10. cacoleman1983

    cacoleman1983 Well-Known Member

    The Master's degree is definitely a cash cow for universities. It's becoming the new Bachelor's degree and is heavily advertised as fully distance learning programs. It's one of the reasons that propio degrees and foreign degrees with some recognition are a valid option for students because anything over a Bachelor's degree is just extra credentials that replaces or supplements prior work experience for a majority of fields. I don't see too many job posts requiring graduate degrees outside of the fields of education and psychology. Usually, if you can't get a Masters degree, having lots of professional certifications as well as other forms of continuing education or professional training can replace the Masters degree.

    The best option for those looking to attend graduate school is to either get some type of graduate assistantship or have your full time job reimburse you for your education. It's not really worth getting student loans to go to graduate school if you seek other options, IMO. I would try my best to obtain low cost or free continuing education units and certifications if there were no other options to pay for graduate school. If you can pay out of pocket without financial strain, that's good too.
     
    Last edited: Jan 30, 2025
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  11. Rich Douglas

    Rich Douglas Well-Known Member

    I feel just the opposite regarding student loans. I racked up some loan debt on my MBA, a ton on my PhD, and none for the degree after that.

    Within two years of earning my PhD, my income had doubled. It literally paid for itself in two years after that. And that was 20 years ago. The rest, as they say, has been gravy.

    Not adjusting too much for inflation, I'd estimate my ROI (so far) at 2,600% with an annualized rate of 18%. (For the PhD.) That's by attributing only half of my future (and current) earnings to that degree. This assumes the impact has remained proportionally the same. (I believe that's an underestimation.)

    ROI gets talked about a LOT on this board, but I'd never bothered before to even get close to a realistic number. I believe those returns are realistic, even underestimated.

    On the other hand, I can assure that my rate of return on the University of Leicester degree has been -100%. So, you know, both ways.
     
  12. Lerner

    Lerner Well-Known Member

    It's case by case issue.

    A master’s degree is a must for some professions, and licensing requirements.
    Local, State and Federal government agencies may have a higher pay rate for employees with master’s degree.
    Nurses get higher pay and leadership positions with MSN degree.
     
  13. Rich Douglas

    Rich Douglas Well-Known Member

    The distinctions are "scholarly" and "professional." All doctorates (except first professional degrees) are "academic" and "research" degrees.

    Scholarly doctorates create new contributions to theory, either through theory testing or theory creation. (I did the latter at Leicester).

    Professional doctorates create new contributions to praxis, or practice. They do not advance theory and, thus, do not make a scholarly contribution. But they are as academic, serious, and valuable as are scholarly doctorates.

    It's understandable why colleges and universities, especially research-oriented ones, would want people with scholarly doctorates since a university's function is to teach and to make significant contributions to scholarship.

    However, I've found that if a schools wants to hire someone, they'll take whatever degree that person has that fits the bill. One of my clients is the president of a university. This person served the university for quite a long time, but needed a doctorate to advance to provost (and later, president). In this person's case, an EdD did just fine.

    By the way, the distinctions between scholarly and professional doctorates abound, and not just on schools' websites. There is a ton of literature on the subject as well. My favorite book on it:
    Achieving Your Professional Doctorate by Nancy-Jane Smith. There are many others as well.
     
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  14. FireMedic_Philosopher

    FireMedic_Philosopher Active Member

    Given that only a fraction of those with doctorates are employed in the field, the argument could be made that they too are cash cows.

    To Acolytes' point, I just wish I had an employer that offered tuition reimbursement. Unfortunately those are few and far between in my field. Fire/Police/EMS is an area where the entry level requirement is usually an associates OR a DD-214, with no further formal degrees required.
     
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