Go ahead and apply for a school and take out loans or wait for an employer to pay?

Nyblizzard

I'm debating whether I should pull the trigger on going for my Masters and taking out more student loans

or just waiting to see if I'm lucky enough that my next employer can pay for it?

How do your companies typically handle tuition reimbursement?

Find more posts tagged with

SAVE $250 on Your Boot Camp — Use Code "EXAM26"

Exclusively for TechExams members for Infosec Boot Camps starting before April 30, 2026

View Boot Camps

Comments

minit

Curious, what are you trying to achieve with a masters? What will the masters be in?

webgeek

Dependes on the company....some pay only up to a certain dollar amount while others pay up to a certain amount of credits. If you can afford it, I would recommend putting a dent in your loans. If you can't, deferment would be my choice therefore masters it is.

nosoup4u

Most I've seen and experienced for most medium to larger companies is a maximum of $5,250 per taxable calendar year. This is the maximum amount the employer can write off for taxes.

Some may pay more, some pay a little less but that's pretty average.

You normally pay out of pocket before the term starts and when you pass your classes or finish the term you provide your transcript and receipts and they reimburse you for the amount.

ptilsen

I would recommend you focus on the cost and benefit of going for master's now vs. waiting. How much experience do you have? What jobs do you expect your master's to help you with? How do you feel it will help your salary?

Tuition reimbursement should only be a minor factor. If a master's degree makes sense to get at all, it is very unlikely tuition reimbursement is a good reason to wait.

Cisco Inferno

my company pays up to $7000 a year AFTER working there for 6 months

Nyblizzard

minit wrote: »

Curious, what are you trying to achieve with a masters? What will the masters be in?

Honestly right now I only see it as a way of gaining knowledge in whatever I decide to major in and to hopefully make me more attractive against the guys who don't have one

Nyblizzard

ptilsen wrote: »

I would recommend you focus on the cost and benefit of going for master's now vs. waiting. How much experience do you have? What jobs do you expect your master's to help you with? How do you feel it will help your salary?Tuition reimbursement should only be a minor factor. If a master's degree makes sense to get at all, it is very unlikely tuition reimbursement is a good reason to wait.

I only have a few years of IT work experience but as far as qualifications go, I only ever see a Masters in helping me achieve a Managerial job and/or simply supplying me with some more knowledge. I see Tuition reimbursement as a major factor for me only because I don't really want to have to take out more loans when I'm only now getting around to starting to pay off the ones I have. I feel that if I can get someone else to pay for it, I do not mind waiting a few years

ptilsen

Look at it this way: If you wait a year to start the master's degree because of tuition reimbursement, whatever increased salary it will bring you is delayed by a year. In turn, whatever your highest-ever salary (in today's dollars) is for the rest of your life is eliminated by one year. Unless your highest-ever salary is not greater than your current salary by an amount equal to or greater than the cost of the degree (including interest on loans), you will actually lose money in the long term by waiting.

If you really just want to get into management to get into management, and aren't really concerned as much with where your salary will go as a result, then by all means, wait. If you want to get into management to make more money, think carefully about what waiting for tuition reimbursement costs you.

The other question is, how long do you wait? Not all employers offer tuition reimbursement at all. Of the four permanent employers I've had, only two have offered reimbursement, and both have been limited ($x a year and 75% of graduate tuition, respectively) and both have had conditions (1 year of employment each, with a requirement to repay it if leaving the company within two years for the latter). Most jobs I have applied for and interviewed for didn't have tuition reimbursement, and the ones that did all had conditions and limitations. In no case would it have made sense to delay my education based on reimbursement. If you're not even sure when you'll be making a job switch, you could end up waiting years, which likewise means deferring he benefit of the degree itself for years.

That is not to say it might not make sense for you, but in my experience, there are few situations in which it does. Unless you expect to switch jobs in the very near future or (I said earlier) don't expect your degree to increase your income, it doesn't make any sense to wait to me. The only other reason I would recommend waiting would be if you were just starting your career. IMO people without professional experience seeking master's degrees to improve employment prospects in this field are making a big mistake. Since you already have experience, I think master's is a good step and I think it will almost certainly pay for itself, which means the sooner you get it, the sooner you get that payoff. I will admit, though, that the cost of the degree does come into play. If the degree you're looking at is expensive enough, it might not be wise to pursue it at allwithout tuition reimbursement.

As far as loans, remember that going half-time or more means you can defer them (not going half-time or more = 3+ years for a master's degree). Student loan interest is a tax deduction, and if your income post-graduation increases to the next marginal bracket, the changed tax write-off amount combined with inflation can make the effective interest cost less than 0%. Overall, the reasonable expectation of significantly higher relative income in the future can make deferring loans as long as possible the most rational decision. I know debt feels bad, but you have to look at it from the long term. The right circumstances can make student loan debt the most rational decision you can make.

dbrink

If you are still paying off undergraduate school loans then I probably wouldn't go into debt even more for your Master's degree. My employer will reimburse up to $1700 per year which isn't great but it is better than nothing.

bub9001

I am a huge fan of pay as you go, meaning no student loans. There are a few things that do carry over after you declare bankruptcy and Student loans are at the top of the list. I think a lot of people would be surprised to know that their own doctor and dentist may still have student loans. Yep they drive the Benz, and have cuff links. But there is a site called deadbeat doctors for a reason.

What ever you do avoid student loans with all your power. If you can cash flow it then do so. It may require some cutting back or even getting a budget set up. I know the "B" word, scary stuff but well worth the effort. Something about student loans change Candidates behavior during a job interview.