economy
AI fears drive some young adults to grad school
Experts say going back to school for a graduate degree is one way to hedge against a rapidly changing labor market.
TL;DR
- Nearly 78% of those considering graduate school plan to enroll within 12 months, an increase from the previous year.
- Enrollment in graduate school typically rises during economic recessions as individuals seek to 'skill up'.
- Despite a relatively strong labor market overall, younger workers face higher unemployment rates.
- Concerns about AI's impact on future job opportunities are a significant driver for considering graduate studies.
- Recent graduates are cautious about the investment in graduate degrees due to the fast-changing labor market.
- Graduate school is increasingly viewed as a hedge or an insurance policy against future job market challenges.
- Enrollments in graduate programs remained flat in fall 2025, but this may change.
- Factors influencing program choice include career-based resources, outcomes, and hands-on opportunities like internships.
- Workers with advanced degrees generally have higher earnings and lower unemployment rates.
- The cost of graduate school is high, with median debt for master's degrees around $54,800 and professional degrees at $173,180.
- New federal loan limits for graduate school will take effect in July, capping lifetime borrowing amounts and eliminating Grad PLUS loans for new borrowers.