Is An Online Masterโ€™s Degree Worth The Money?

CNBC Make It
15 Oct 202008:37
EducationalLearning
32 Likes 10 Comments

TLDRThe U.S. faces high unemployment with over 15 million filing for unemployment insurance during the pandemic. Many are considering returning to school, a common response to recessions, despite the changed landscape of education due to COVID-19. While graduate degrees can lead to higher earnings and less economic impact from crises, the shift to online education raises questions about its value and cost-effectiveness. Nontraditional online learning pathways may disrupt the education system if employers begin to value them as much as traditional degrees.

Takeaways
  • ๐Ÿ“‰ The U.S. unemployment rate is at 7.9% with over 15 million Americans filing for unemployment insurance since the pandemic began.
  • ๐Ÿซ During the 2008 financial crisis, many Americans went back to school; the pandemic has similarly increased interest in education, but with altered student experiences.
  • ๐Ÿ’ฐ The College Board estimates that master's programs cost about $19,570 per year at public universities and $43,380 at private universities, with some institutions like Georgetown charging over $80,000 per year.
  • ๐Ÿ“ˆ Opportunity cost is a crucial factor in deciding to pursue higher education, especially during a recession when job opportunities are scarce.
  • ๐Ÿ“š Historically, college enrollment increases during recessions; however, the pandemic has disrupted traditional schooling, affecting undergraduate enrollment negatively while boosting graduate school enrollment.
  • ๐ŸŽ“ Workers with graduate degrees often outearn those with only a high school diploma, and advanced degree holders have been less impacted by the pandemic's economic fallout.
  • ๐ŸŒ The shift to online education during the pandemic has not reduced costs for universities or students, as building and maintaining online platforms is expensive.
  • ๐Ÿค” Students are questioning the value of their investment in graduate education, especially considering the changed experience of online learning compared to in-person interactions.
  • ๐Ÿ’ผ Employers' acceptance of online advanced degrees could significantly impact the value of traditional graduate education and potentially disrupt the educational market.
  • ๐Ÿ“Š Companies like Google and Amazon are creating their own certification programs, suggesting a possible shift towards nontraditional learning pathways being valued in the job market.
Q & A
  • What is the current U.S. unemployment rate mentioned in the transcript?

    -The current U.S. unemployment rate mentioned in the transcript is 7.9%.

  • How many Americans have filed for unemployment insurance since the pandemic began?

    -Over 15 million Americans have filed for unemployment insurance since the pandemic began.

  • What was the cost of a master's program at public and private universities according to The College Board estimates?

    -The College Board estimates that a master's program costs about $19,570 per year at public universities and $43,380 per year at private universities.

  • What is the opportunity cost in the context of going to college?

    -In the context of going to college, the opportunity cost is what you would have earned on your job if you had been working instead of going to school.

  • How did the number of college students in the United States change between 2007 and 2011?

    -Between 2007 and 2011, the number of college students in the United States increased by roughly 14%, from 17,956,000 to over 20 million.

  • What are the two countervailing forces affecting students' decisions to go to college during the pandemic?

    -The two countervailing forces are the bad economy, which makes it a good time to go back to school, and the pandemic, which has disrupted how schooling is provided.

  • How has the pandemic affected undergraduate and graduate school enrollment?

    -Undergraduate college enrollment is down 2.5%, while enrollment in master's programs has increased by 6% and enrollment in post-baccalaureate certificates has increased by 24% since 2019.

  • What are the average weekly earnings for workers with a high school diploma, college degree, and master's degree?

    -Workers with a high school diploma earn around $746 per week on average, college graduates earn closer to $1,248 per week, and workers with master's degrees earn nearly $1,500 per week.

  • How has the pandemic impacted highly educated workers compared to others?

    -Highly educated workers are significantly less likely to have lost health insurance or struggled paying bills since the pandemic began, and the unemployment rate is two times higher for high school graduates than for those with a master's degree.

  • What are the concerns students have about the value of their education during the pandemic?

    -Students are concerned about whether they are getting the same value for their money spent on education, as the online experience is different from in-person, and they are not using facilities like classrooms.

  • What factors determine if an online master's degree is worth the expensive price tag?

    -Factors such as the quality of online classes, technical support, networking opportunities, and how employers view online advanced degrees determine if an online master's degree is worth the cost.

  • How might nontraditional online learning pathways like Coursera, ADEX, and Khan Academy impact the traditional education system?

    -If companies begin to value these nontraditional online learning pathways as much as traditional graduate degrees, the whole education system could be turned upside down, potentially disrupting the market for formal education.

Outlines
00:00
๐Ÿ“‰ Economic Downturn and the Shift in Education

The script begins by highlighting the current U.S. unemployment rate and the significant number of Americans filing for unemployment insurance due to the pandemic. It discusses the historical trend of people returning to education during economic recessions, emphasizing the concept of opportunity cost. The cost of obtaining a graduate degree is outlined, with public universities charging around $19,570 per year and private universities charging $43,380. The script explores whether an online master's degree is worth the investment, considering the economic benefits of having a graduate degree, such as higher average earnings and lower unemployment rates. It also touches on the changes in the student experience due to the pandemic, with undergraduate enrollment dropping and graduate school enrollment booming.

05:01
๐ŸŽ“ Value of Online Education During the Pandemic

This paragraph delves into the challenges and considerations of pursuing higher education during the pandemic, particularly focusing on the shift to online learning. Students are questioning the value they receive for their investment, as the online experience lacks the collaborative and interactive nature of in-person education. The costs of online education are also discussed, with the script noting that universities have not significantly reduced costs for graduate students. It highlights the importance of online class quality, technical support, and networking opportunities in determining the worth of an online master's degree. The paragraph concludes with a discussion on the potential disruption of the traditional education system by nontraditional online learning pathways, such as those offered by Coursera, ADEX, and Khan Academy, and the possibility of these credentials being valued by employers in the future.

Mindmap
Keywords
๐Ÿ’กUnemployment rate
The unemployment rate is a measure of the number of actively unemployed people compared to the total labor force in a country. In the context of the video, it is mentioned that the U.S. unemployment rate is 7.9%, indicating a significant number of Americans are out of work, which is a key factor influencing decisions to return to education during a recession.
๐Ÿ’กUnemployment insurance
Unemployment insurance is a benefit provided to individuals who have lost their jobs and meet certain eligibility requirements. It serves as a temporary income support while they look for new employment. The video highlights that over 15 million Americans have filed for unemployment insurance, reflecting the economic impact of the pandemic.
๐Ÿ’กEconomic recession
An economic recession is a period of negative growth in economic activity, typically measured by a decline in gross domestic product (GDP) for two consecutive quarters. The video discusses the uncertainty surrounding the end of the current economic recession, which influences people's decisions to invest in education as a way to ride out the economic downturn.
๐Ÿ’กOpportunity cost
Opportunity cost refers to the potential benefit an individual, investment, or business misses out on when choosing one alternative over another. In the video, the concept is used to discuss the trade-offs involved in deciding to pursue higher education during a recession, where the foregone income from not working is considered the opportunity cost.
๐Ÿ’กGraduate degree
A graduate degree is an academic degree that requires the successful completion of undergraduate education plus additional advanced coursework and is typically at the level of a master's or doctoral degree. The video explores the worthiness of investing in a graduate degree, especially in the context of the changed educational landscape due to the pandemic.
๐Ÿ’กOnline education
Online education refers to the delivery of education content via the internet. It has become more prevalent during the pandemic as traditional in-person classes have been replaced by virtual ones. The video discusses the challenges and considerations of pursuing an online master's degree, including the value for money and the experience compared to in-person learning.
๐Ÿ’กCost of education
The cost of education refers to the expenses associated with attending educational institutions, including tuition, fees, and living expenses. In the video, the College Board's estimates for the cost of master's programs at public and private universities are highlighted, emphasizing the financial burden students face when deciding to pursue higher education.
๐Ÿ’กEnrollment
Enrollment in this context refers to the number of students who have registered for a particular academic program or institution. The video discusses the changes in undergraduate and graduate school enrollment due to the pandemic, with a notable increase in master's programs and post-baccalaureate certificates.
๐Ÿ’กAdvanced degrees
Advanced degrees include master's and doctoral degrees that are pursued after completing a bachelor's degree. The video discusses how workers with advanced degrees have been less impacted by the economic fallout of the pandemic, suggesting the potential benefits of higher education in terms of job security and income.
๐Ÿ’กNontraditional online learning pathways
Nontraditional online learning pathways refer to educational programs delivered through online platforms that offer courses, certificates, and credentials outside the framework of traditional universities. The video discusses the potential of these platforms to disrupt the higher education market if they gain acceptance from employers and society.
๐Ÿ’กEmployer acceptance
Employer acceptance refers to the willingness of companies to recognize and value certain educational qualifications or experiences when hiring or promoting employees. In the context of the video, it explores the potential shift in how employers view online advanced degrees and nontraditional learning pathways.
Highlights

The U.S. unemployment rate is at 7.9% with over 15 million Americans filing for unemployment insurance since the pandemic began.

The economic recession's end is still unclear, adding to the uncertainty faced by many Americans.

During the 2008 financial crisis, many Americans went back to school; however, the coronavirus pandemic has changed the student experience significantly.

The College Board estimates that master's program costs are around $19,570 per year at public universities and $43,380 at private universities.

Georgetown University charges over $80,000 per year for a master's program, raising questions about the value of such expensive education.

Opportunity cost is a key concept in Economics 101, and it's crucial to consider when deciding to pursue higher education during a recession.

In 2007, there were about 17.9 million college students in the U.S., which increased by 14% to over 20 million by 2011.

Undergraduate college enrollment has dropped by 2.5% due to the pandemic, affecting low-income, community college, and international students.

Graduate school enrollment is booming, with master's programs seeing a 6% increase and post-baccalaureate certificates increasing by 24% since 2019.

Workers with graduate degrees often outearn those with only a high school diploma by around $700 per week on average.

Highly educated workers have been less impacted by the economic fallout caused by the pandemic, with lower rates of health insurance loss and bill struggles.

The unemployment rate is two times higher for high school graduates than for those with a master's degree.

The experience of earning a master's degree has changed dramatically, with many programs shifting online and affecting the value students perceive they receive.

Few schools have reduced costs for graduate students since the pandemic, leading current students to question the value for money spent.

Online education is not necessarily cheaper to provide, as building software, developing online curriculum, and expanding tech support can be costly.

Employers' views on online advanced degrees will be a significant factor in determining whether they hold the same weight as traditional degrees.

Online providers like Coursera, ADEX, and Khan Academy offer courses, certificates, and credentials for little or no cost, potentially disrupting the traditional education market.

Companies like Google and Amazon are creating their own certification programs and assessments, which could shift the value placed on formal education.

Transcripts
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