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Average Cost of Master’s Degree & Contributing Variables

average cost of master's degree

If you’re interested in graduate education, you may wonder, how much does a master’s degree cost? Going to grad school and earning a master’s degree is an excellent way to boost career prospects and salary. For example, a master's degree denotes a graduate as a specialist in their field. Also, many of the highest-paying jobs in the US today require a master’s degree to qualify in the first place.

There are many ways to earn a master’s degree, such as traditional universities and online schools. Indeed, the cost of graduate school online versus traditional universities leads many to wonder which they should attend.

Let’s look at the average cost of a master’s degree for online vs. in-person programs. In summary, you’ll have a better understanding of which kind of master’s degree you might pursue and how best to earn your degree.

Are Online Master’s Degrees More Expensive than Traditional Degrees?

According to certain studies, the average cost of an online degree based on tuition only from a public university is:

  • $37,920 for online students
  • $37,320 for in-person students

However, in aggregate, public and private school online degrees are about $10,776 cheaper than in-person degrees. It’s because moving to a school, accounting for living expenses, makes in-person college more pricey than an online school.

In other words, the average cost of the online degree may only be slightly more expensive overall. But this is not the case for each university. Furthermore, that only takes tuition into account. Online master’s programs are not always more expensive when considering extra costs.

Bottom line: the average cost of a master’s degree online for public schools can be a little more expensive than in-person degrees, but not by much. When considering the other costs of college education, online master’s degrees can be cheaper.

Is Online College Always More Expensive?

No, because it depends on the school each student chooses to attend. Many online programs that are one-to-one matches for in-person counterparts can cost as much or more. In other words, if a student tries to attend an online master’s program that’s precisely the same as an in-person program, they will likely pay more.

But that doesn’t consider the fact that there are plenty of affordable online school options. For example, some of the most affordable online master’s programs and other educational pathways are only available on the Internet.

Because of this, students can specifically seek out affordable online college programs. They can then take advantage of those lower costs and earn degrees or certifications for less money. Furthermore, online school eliminates many of the ancillary costs of college. When one attends a traditional university, they have to pay for:

  • Room and board unless they live close enough to the university campus
  • Gas and other transportation costs, even if they don’t have to pay for room and board
  • Additional fees for access to the campus, even if they don’t use specific campus resources
  • And more

Students who attend online school don’t have to pay for these things. They need a working computer and occasionally pay for specific software programs. They also need to pay a monthly utility bill to have Internet access. But overall, those minor costs are usually lower than the fees associated with traditional college.

Example of In-State vs. Online Degree Costs

Let’s give a specific example of in-state versus online degree costs for a popular MBA. Arizona State University offers a Master of Business Administration to in-state, in-person, and online students.

It is the same price to attend Arizona State University’s MBA online whether a student is a state resident or attending from out of state. However, it is much more expensive for an out-of-state student to attend ASU in person.

Because of this, it is a little cheaper to attend Arizona State University in person, but only if the student in question is a state resident. Out-of-state students are better off – and get a better financial deal – if they attend the online version of the program.

In-State vs. Out-of-State Costs

As stated earlier, the primary differentiating factor between online and in-person tuition for college is in-state versus out-of-state cost. It is much more expensive to attend any public university from out-of-state as opposed to being a state resident. Notably, whether one attends a school online or in person, this is true. Other data sources back this up.

Many colleges charge more to out-of-state students for a variety of reasons:

  • They attract students primarily from their state resident pools which helps to distinguish the universities in some ways.
  • They can earn money from out-of-state students who attend online. Remember, online students pay less for room and board or facility resources. So they charge those students more in terms of flat tuition to make up the difference. It’s one reason many Americans attend school in-state rather than relocating to an out-of-state town for college.

Why Does the Cost of a Master’s Degree Matter?

The price of a master’s degree matters significantly to most students. Since the average cost of a master’s degree is between $30,000 and $120,000, attending and completing a degree program is no small commitment.

While many students can take out loans, those loans eventually have to be repaid. Furthermore, students usually pay significantly more for loans over their lifetimes. That’s due to interest rates and other fees.

Therefore, attending an online master’s program is most worthwhile if you can afford it or it’s leading to a career. For example, an online degree is just the ticket if a master’s degree is required to land a job. That is doubly true if the position will help the student pay down loans later.

For students on the fence, it might help to look into the cheapest online master’s degree programs available.

The Cheapest Option: In-State and In-Person

Overall, the cheapest graduate degrees are in-state and in-person. Also, it is true if the student in question doesn’t have to pay for room and board. If they can stay at home or with friends, they’ll save significantly on their overall college costs.

However, this limits one’s college choices and program flexibility significantly.

In-State and Online

In-state and online college could be affordable and efficient for various reasons. However, students should consider a given school’s posted tuition rates before choosing this option.

Some schools, like Arizona State University, mentioned above, charge in-state students more money to attend online. The charge is a common pricing scheme overall. Thus, students interested in an in-state school might be better off attending in-person if cost is a major factor.

Out-of-State and In-Person

Out-of-state, in-person students usually have to pay more than the above options. That’s because they get hit with higher than average tuition rates. They also have to pay for room and board and other fees.

Once again, ASU’s example demonstrates this concept plainly. Out-of-state students who attend university in person have to pay more than any other student. But this is all dependent on the school in question. Most colleges charge more to attend out-of-state and online, but not all.

Out-of-State and Online

In contrast, the most expensive option is to attend graduate school out-of-state and online only. In general, online programs are slightly more costly than in-person programs. Add out-of-state fees and costs to the mix, and students must pay significantly more than their in-state counterparts.

That said, there are ways to minimize the cost of out-of-state, online graduate school. Read on for more information.

How To Reduce the Increased Cost of Online Master’s Programs

There’s no denying that it can be tough to cover the cost of online master’s programs. It is even more true when attending from out of state. However, there are ways to offset these increased costs:

Move to a School’s State

For starters, students can move to the state of the university they plan to attend. They can still attend online, but they won’t face the high out-of-state costs. Students might still have to pay a little more to attend school online. But the odds are that they will save more in aggregate.

In this way, students can get the best of both worlds: roughly the same flat tuition rate for the programs of their choice. However, they don’t have to pay extra for attending out-of-state. They also attend classes online and enjoy all the benefits of that schooling method.

However, this isn’t feasible for every graduate student, especially those with careers. Therefore, students might wish to look into online master’s programs for their chosen professions in-state before widening their search ranges.

Furthermore, students should look into what each school considers “in-state residency.” For instance, some schools might want students to have lived in their state for two years before applying for a program. Others may have shorter or longer residency requirements.

Apply for Financial Aid

Next, students can still apply for traditional financial aid opportunities for grad school. In fact, there are many different opportunities for grad school financial aid depending on one’s industry or major.

First, students must fill out the FAFSA if they hope to get government-based student aid. FAFSA includes financial assistance such as the Pell Grant. Students can then visit a grad program’s website for information about available scholarships, fellowships, and grants.

Scholarships and grants usually don’t have to be paid back. They can be considered extra money students can use to pay for college expenses. However, many grad school scholarships and grants are highly competitive. There are also only usually a handful for any given school or major every year.

Furthermore, fewer scholarships and grants are available for grad school students than undergrad students. Still, this could be an excellent way to offset some students’ increased cost of a master’s degree online.

Lastly, students might look into whether their current employers may pay for some of their tuition. In many industries, particularly in business, employers will pay for schooling in exchange for working years. For example, a student might sign a contract to go to grad school and earn a degree. In exchange, their employer pays for part or all of their tuition. The student then works at that company for some years afterward.

Complete the Program Part-Time

Lastly, students can complete master’s programs online on a part-time schedule. One of the many benefits of online grad school is more schedule flexibility. Students don’t usually have to attend school full-time as they might with in-person programs.

Completing grad school part-time means that students:

  • Can attempt to pay for school as they go. For example, if they can’t pay for tuition upfront, they can instead pay on a credit-by-credit basis.
  • Can apply for different forms of financial aid multiple times since the degree takes longer to earn. For example, imagine a scenario where a student completes a master’s over four years instead of two. That student can apply for federal financial aid four times instead of two times.

However, some students may wish to complete their master’s programs quickly. For example, maybe they need a master’s degree to get a new job position or promotion.

Alternatively, students can pursue graduate certificates. Graduate certificates are shorter programs covering many of the same classes and topics as a graduate program. They are cheaper, often offered online, and many include transferable credits applicable to graduate programs later.

For example, a student could complete a graduate certificate program in their industry in a year. Then, once they have enough money for the second year, they can transfer the credits from that program to a full graduate degree.

Overall, online master’s programs can be expensive, especially if one attends school from out-of-state. But they are accessible and can be paid for through a variety of different methods.

The Benefits of Online Master’s Programs

Online master’s programs have significant advantages making them quality choices for graduate students. These advantages offset the increased cost one might face attending such a program:

Convenience

To begin with, an online graduate program is more convenient than in-person programs. For example, it is very easy to attend class online. It’s even more true for classes that don’t require students to view video lectures at set times.

These asynchronous online programs enable students to attend class or watch materials in their time frames. Asynchronicity is a significant advantage for students with busy work schedules, family responsibilities, etc.

On top of that, online master’s programs don’t typically have in-person or practicum components. Or, if they do, you can complete those hours in your location. That means all students have to do is read material, complete assignments, and take tests. These programs are, therefore, frequently less involved or time-consuming than others.

Program Choice

Next, online master’s programs give students unprecedented choices in terms of majors. Thanks to the Internet, students can now attend university from anywhere in the country. More importantly, they can attend any school they wish.

Students no longer need to live in the same town as a school to attend. Therefore, if a student has always wanted to attend a specific school, they can do so even if they don’t live in the same state. This, in turn, opens up additional program opportunities and choices.

Say that a university is known for its quality biology program. A student can attend that master’s program in biology even if they don’t live nearby. In contrast, their in-person options are much more limiting because of geographic realities.

Flexible Scheduling

Lastly, online graduate programs often allow students to enjoy more flexible scheduling. Again, this is great for working students or those who have to attend to family matters quickly, such as parents.

However, flexible scheduling is also great for students who want to complete a master’s degree part-time. Many in-person programs require a full-time study commitment. That means lots of work and less time spent at a job.

Part-time master’s programs are available at a more relaxed pace. They enable students to complete their education at a time frame that works for them, not the other way around.

Is it Worthwhile to Study Online Even with Higher Costs?

Because studying online can be expensive, many wonder whether they should earn an online master’s degree. After all, will the cost of that degree eventually be offset by the salary you expect after graduation?

Even with the higher costs of online and especially out-of-state online programs, it is still worthwhile. For example, the BLS indicates that graduate degrees earn significantly more than bachelor’s degrees and GEDs.

Therefore, earning an expensive graduate degree can set one up for success and greater lifetime earnings in the long run. Which, of course, also helps make loans more affordable. Ultimately, online graduate programs are highly beneficial. Official statistics indicate that one can expect more lifetime earnings after acquiring a graduate degree than otherwise. Still, students should consider their goals before signing on the dotted line for a school application.

However, whether or not an online master’s degree is ultimately worthwhile depends on a variety of factors. Students should consider:

  • Overall career goals and ambitions. For many industries, only a bachelor’s degree is worthwhile or necessary to get started. Then, successful professionals can earn other accolades, certificates, and promotions without getting another degree.
  • Their current educational budget. Some students can certainly afford the high cost of online graduate education more than others. Of course, there are always ways to lower tuition costs, such as through financial aid opportunities.
  • Whether students will benefit from the advantages and limitations of online education. Some students perform better when they attend university in person, no matter what the subject is

Earn a Master’s Degree Online

All in all, the average cost of a master’s degree is roughly the same online or in-person. That said, you could pay significantly more if you attend school from out-of-state. It is more expensive to attend school out-of-state, either online or in person, than to attend a school in-state.

Consider these factors when selecting your master’s program to make the most of your educational budget. To find the right online master’s program for your needs, look no further than GetEducated.com.

Our comprehensive catalog of online colleges is just what you need to find the right master’s program for your career goals. Check it out today!

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