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Is an Online or On-Campus Master’s Degree More Cost-Effective in the Long Run?

Quick Highlights:

  • Online degrees may reduce expenses like housing and commuting, though both types of programs offer similar financial aid.
  • On-campus degrees may require giving up current employment; online degrees might limit networking opportunities.
  • Employer perceptions vary, with on-campus degrees generally viewed more favorably than online degrees.
  • Online programs provide greater flexibility, ideal for those with job or family commitments.

Table of contents

If you are interested in getting an online master’s degree, you most likely have a number of questions you need to ask. While an online program offers better learning flexibility, you may be concerned about how it affects your financial aid and career advancement. An on-campus master’s degree might be the traditional option, but technological advancements have made online degrees incredibly popular and effective. 

More importantly, there are changing societal norms about where you can go to school. While there used to be an expectation that on-campus degrees were better than online degrees, this misconception is no longer true. In addition, many online degrees are more cost-effective over the long run. 

Related:

Understanding Cost-Effectiveness in Higher Education

Is online college cheaper than in-person? The answer to this question depends on where you go to school. Once you enroll in a college program, you will have to pay for upfront costs, like application fees, college textbooks, and tuition. Many of these will also be ongoing costs because you will have to pay each quarter for new textbooks and tuition fees. 

Beyond the upfront costs, you will also pay an opportunity cost for getting your degree. The opportunity cost of doing an activity is the alternative activity, product, or service you would have been able to do instead. For example, the time you spent going to school this year could have been spent making $30,000 in earnings at a local retail shop. Opportunity cost doesn’t just have to be only money because it can also refer to the things you missed out on, such as hiking trips and family gatherings.  

To really understand the cost of your schooling, you have to think about your upfront costs and your opportunity costs. Let’s assume you spent $15,000 on tuition and other upfront costs. There was also an opportunity cost of $30,000 for the money you could have made when you weren’t in school. Thus, your current costs for going to school are $45,000. 

Fortunately, these aren’t the only costs to consider. When you go to college, you also gain some long-term financial benefits. Over a lifetime, the Association of Public and Land-Grant Universities reports college graduates typically make $1.2 million more in earnings. Because of this, most people will have better long-term financial outcomes by choosing to get a college degree.   

The Cost Structure of Online Master’s Degrees

How much will you be charged for online master’s degree programs? Is online college cheaper for everyone? 

Each college structures its tuition and grants in a different way. At online colleges, you can sometimes find schools that have pay-as-you-go plans that allow you to take one class at a time. Other schools offer payment plans to make your college costs easier to bear. 

No matter how the costs are structured, you will typically have to pay for tuition and a range of fees. While you don’t have to pay for a dorm room with an online master’s degree, you will need to pay for technology, graduation, and activity fees. Often, you will need to pay out of pocket for technology costs, such as wi-fi services, software programs, and laptops. 

Fortunately, you can save money by remaining at home during your degree. Instead of having to pay for an apartment near campus, you can continue to live with your family. You also don’t have to pay commuting costs to an online school because all you need to do is log on to start your class each day. 

In addition, you can lower your costs by using grants, scholarships, and financial aid. Online programs accept the same types of financial aid as in-person programs. If your program qualifies for financial aid, it will have a federal school code from the United States Department of Education.

When it comes to financial aid, the most important thing is how often you go to school. You get financial aid for accredited online programs, but you have to be a full-time student. If you are uncertain about what that means, you can always get more information from your school’s admissions counselor or the financial aid department. 

The Cost Structure of On-Campus Master’s Degrees

When it comes to getting a college degree, is it better to do online school or in person? It depends on the type of school you go to and the kind of aid you get.

If you enroll in an on-campus master’s degree for your career advancement, you will have to pay the cost of your textbooks, fees, and tuition like you would with an online degree. On top of those costs, you will also need to pay for housing near the campus and commuting costs. 

Like online school, you will be eligible for scholarships and grants. The biggest difference in aid is with work-study programs. These types of programs are when you receive an on-campus job that pays you money. Often, the wage is less than what you would earn at your current position, but the job title is often in a field that would benefit your future career. For instance, a psychology student might be given a work-study job as a teaching assistant for the psychology department.  

While you most likely won’t be able to keep your current job with an on-campus master’s degree, you do get something else in trade. With an on-campus degree, you get to meet your fellow students and network. These networking opportunities are invaluable when you enter the workforce. Additionally, you’ll have an easier time accessing all of your school’s on-campus resources.

Analyzing the Opportunity Costs

An opportunity cost is the foregone benefits from missing a potential opportunity. If you buy two hot dogs with your five dollars, you can’t buy a hamburger that costs $5. The opportunity cost of the hot dogs is the hamburger that you would have had. Likewise, the opportunity costs of studying on a Friday night might be the loss of a night spent clubbing with your friends.  

The opportunity cost of a master’s degree is what you must forego in order to get the degree. To get an on-campus master’s degree instead of an online option, you might have to give up working at your current job or living close to your family. Additionally, the opportunity cost would include the added cost of the degree as well as lost career advancement because you aren’t at your job. 

Choosing an online degree has a similar opportunity cost. If you decide to go to an online school, you may miss out on networking opportunities, work-study positions, and on-campus resources. 

Long-Term Financial Outcomes

In a lifetime, college graduates who have a bachelor’s degree earn $1.2 million more. At the same time, the average borrower owes $28,950 in student loans according to Forbes. While an affordable degree can lower these costs, this level of debt can still be a significant factor for students who are just graduating from college. 

Ultimately, the return on investment you receive is going to be linked to where you study and what you study. There is still some hesitancy among employers about online degrees. The Society for Human Resource Management reports that while 92% of employers thought on-campus schooling was favorable, this number dropped to 42% for online degrees. 

The type of degree you get plays a huge role in the type of career advancement opportunities you receive. In the United States, the average person with a master’s degree earns $81,848 per year. This varies significantly by subject. 

  • Business Administration: $73,318
  • Computer Science: $85,894
  • Economics: $70,033
  • Marketing: $68,370
  • Psychology: $59,697

Personal Considerations and Flexibility

While reviewing long-term financial outcomes and career advancement options can help, you have to go beyond the numbers in making this decision. Your learning style and personal preferences will determine whether online college is right for you. In addition, you may need to consider your personal obligations with your family and friends.   

If you do need to work a full-time job or have extra time to care for your family, an online degree may be a better option than an on-campus master’s degree. Online colleges allow you to study on your schedule, so you don’t have to show up for class at a set time. This type of learning flexibility means you can easily manage your work, family, and education at the same time. 

Making the Decision

There are benefits to getting an on-campus and online master’s degree, so it is impossible to say which degree is better for your needs. Before you make this type of decision, you must consider the long-term financial implications and your career goals. In addition, you must balance these ambitions with your short-term personal goals as well.  

Discover a Master’s Degree That Works for Your Needs

If you are interested in getting an online master’s degree or an on-campus master’s degree, there are many options to choose from. While online and offline schools offer similar financial aid, the school format may have an impact on your career advancement. However, online schools offer better learning flexibility. Because of this, it is important to consider a range of factors when you decide where to go to school.