Graduate School—Who Should Foot The Bill?

Graduate students hold nearly half of all federal student loan debt—but receive the least attention in education policy. It’s time for a shared solution.

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Higher education is dominating the headlines, whether federal funding cuts, DEI policies, research restrictions, or student debt. However, there is little focus on one student population being hit the hardest—graduate students.

Students earning master’s and doctoral degrees are essential to the academic ecosystem—they lead research, teach undergraduates, and advance innovation. Yet, graduate students are seeing their work and positions being stripped away.

With fewer opportunities and the current administration along with Congress seeking to shift the burden of financing higher education away from the government and towards the private sector, individual colleges or the individual, concern is growing about the future of essential professions that require advanced degrees—doctors, scientists, lawyers, professors, and business leaders.

Graduate students make up 16% of all borrowers, but they account for 47% of all loans provided by the federal government. This is roughly $39 billion in one year. So, who should be footing the bill for these advanced degrees: the government and taxpayers, corporations, or the individual? The answer depends on your rationale for education.

If you believe education exists to enrich society and strengthen Democracy, graduate degrees clearly play a role. Those with advanced degrees are more likely to vote, volunteer, and be more civically involved. In fact, 64% of House members, 79% of Senators, and 20% of their staff hold graduate degrees. In 2023, 21% of all Federal workers held advanced degrees. As of this year at the state level, approximately 85% of those with the highest positions (Governor, Lieutenant Governor, Attorney General, and Secretary of State) held advanced degrees. In sum, those with this graduate-level education attainment are highly represented in the most influential offices of our Democracy and are among the most civically engaged citizens. Under this rationale, the government and taxpayers should share in the cost of graduate education.

If you view education attainment primarily as a means for personal mobility, then graduate school plays a significant part in that outcome. The median salary for those with Master’s, a Professional (Law, Medicine, etc.) or Doctoral (PhD) degrees in 2024 was approximately between $95,600-$123,000 a year compared to only $80,236 for bachelor’s degree holders. While this varies by field, experience, and location, the premium for a graduate degree tends to be higher. Under this rationale, the benefit is primarily for the individual, and they should share in the cost of education.

The third rationale is a bit more complex. As employers demand higher credentials, graduate education becomes less a personal choice and more a professional requirement. 16% of jobs will require a graduate degree by 2031 compared to 8% in 1983. If employers adhere to this educational ideology and desire workers to have graduate credentials instead of developing those skills internally, then, under this rationale, corporate America should share the cost of education.

The truth is that we as a society expect education to do it all—advance individuals, strengthen Democracy, and power the economy. Yet we often forget the cost of preparing future generations. If we collectively want to share education’s rewards, then we must also share the costs.