Evaluating ROI: What Kind of Skillset Can Your Develop Through Advanced Nursing Degrees?
Not only are college degrees an investment, but they are the BIGGEST investment many people will ever make. Why then, is this six-figure expense so often framed as an experience rather than an asset?
Were one to pump $100,000+ into the stock market, they would want a clear idea of what kind of return they could expect. What their money was getting them, in other words. The same perspective should be weighed when it comes to getting a college degree. What kind of ROI can nurses expect to get by pursuing a graduate degree?
In this article, we will take a concrete look at answering that question so you can find the perfect graduate degree for your needs.
First, How Much Do Graduate Degrees Cost?
You can’t figure out your ROI until you nail down what sort of investment you are making in the first place. The answer, unsurprisingly, is that it depends. Some graduate programs will cost less than $20K. Others will exceed $100,000.
What should you do with that information? It’s ultimately a personal choice. You may decide that the six-figure university is, in fact, five times better than the more affordable program. You may conclude that you are willing to pay the difference.
That’s fine, but here is something to keep in mind: the more expensive degree will not provide you with higher wages. Nurses operate within a relatively fixed income stream. Where a business person may be eligible for more promotions and raises because of their fancy degree, a nurse is pretty much going to make the same amount of money regardless of where they went to school.
That doesn’t mean you need to toss the application to your dream school in the trash, unfinished. It does mean you should be aware of the choice you are making.
A solid investment will have a good return. That said, you may value other features of your educational experience that extend beyond the money. You may genuinely want the best education you can get. You may know that a certain university is known for its teachers, or its resources, or—whatever it is that you find important.
These are valid priorities. Nevertheless, it is important to think about how they influence the overall financial sensibility of your decision.
Evaluating ROI
The ROI of your graduate nursing degree will depend partially on what you study. Nurse practitioners can make $100,000+ depending on what they specialize in. Nursing leaders or administrators can command similar salaries.
By that criteria, let’s assume that you are currently receiving the median pay of $80,000. If your degree results in an income of $100,000 and also costs that much, you will begin to see a return on your investment within five years.
If, on the other hand, your degree is less than $20K, you may see a return within twelve months.
Understand also that how you finance your degree will also influence ROI. Paying cash means that you can avoid interest payments—which could severely impact your ultimate return. Paying cash, of course, is considerably more achievable for an $18,000 degree than it is for one that costs six figures.
The ROI is strengthened or diminished by how many years on the job you have left. If you are 25, you may feel that you can wait five years to experience a return on your investment. If you are 45, that timeline might feel less sensible.
Other factors to consider? How competitive is the field you are trying to enter? A standard nurse practitioner can establish their own practice in many states. This means that they won’t need to stand out with their resume to outcompete other candidates. They can instead effectively employ themselves.
On the other hand, if you are trying to become a psychiatric nurse practitioner, you may experience more competition. Your community will likely have a limited need for this position. That means, you will need to stand out a little more to get the job you want. In that case, a more prestigious degree could help.
Bottom line? The quicker you can start making money with your graduate degree, the better the return will ultimately be. In most cases, an affordable degree will allow you to start earning right away. If the job you are interested in is extremely competitive, it may help a bit to bolster your credentials.
In most cases, however, spending less on your graduate degree is most sensible from an ROI perspective.
The Value of Your Skills
Determining the value of nursing skills naturally extends beyond mere financial considerations. You’ll interact with real people, whose long-term health may rest on your shoulders. What skills will your graduate degree get you?
Generally, graduate studies provide a more focused look at concepts you may have developed a broad-stroke understanding of while getting your undergraduate degree. For example, RNs learn enough about neonatal studies to work on a maternity floor, but not enough to specialize in neonatal nursing.
The value of your degree in this context concerns: • Patient outcomes: Is one program so much better than another that your patients will experience better outcomes based on where you studied? • Job possibilities: Are you interested in a career that is only available to those with a more expensive degree?
Both situations are somewhat unlikely. Nursing education is extremely regulated. This means that the things you learn in one program will be very similar to what you learn in another. Pricier programs could potentially have access to better resources. Simulation labs. More prestigious professors.
However, they will have the same information as any other program. No one is setting aside “real nursing knowledge” for people willing to take out a six-figure loan.
The second scenario is more plausible. Degree paths can vary considerably from school to school. If your area has two universities— one affordable, the other quite pricey, you may find that the degree path you are interested in is only available at the more expensive school.
Online learning does give students more options. If you can’t find an affordable program in your community, chances are very strong you’ll find one online. Still, you may need to pay more to get the exact degree you want.
Ultimately, it is a balance of considerations. ROI should certainly be weighed, but you should also choose the program that best aligns with your long-term goals.