Millennials, those born between 1982 and 1996, face a unique set of challenges when it comes to higher education. While a PhD can be a stepping stone to a rewarding career, it often comes with a significant financial burden in the form of student loan debt. This, combined with a competitive job search market and a changing academic landscape, has created a difficult situation for millennial PhDs, leaving many struggling to manage their finances and find stable employment.
The Weight of Debt
The cost of pursuing a PhD has risen dramatically in recent years. Tuition fees, living expenses, and research-related costs add up quickly, leaving graduates with substantial debt. According to Education Data Initiative, the average student loan debt balance (outstanding loan) among all millennials is $40,438, which is higher than the national average1. However, this figure includes all millennials, not just those with PhDs, so it doesn’t fully capture the debt burden faced by those with advanced degrees. Data specifically for PhD holders reveals a more concerning picture. The average outstanding debt for PhD holders is $89,5262. Furthermore, the average outstanding debt for PhD graduates in 2020 was $88,3683. This financial burden can be particularly challenging for millennials who may also be juggling other financial priorities, such as saving for a home or starting a family.
It’s important to recognize that the type of institution attended significantly impacts the debt levels of PhD graduates. Those who attended public institutions had an average debt of $195,504, while those who attended private, non-profit institutions had an average debt of $258,7123. This difference highlights the need for increased financial aid options and more affordable higher education, especially for those pursuing advanced degrees.
Adding to the financial strain, there are hidden costs associated with doctoral programs that contribute to the overall debt burden. These include living expenses, which can be high in cities with major research universities, research materials and travel for conferences and fieldwork, and the cost of health insurance, especially for those without employer-sponsored coverage4. These factors can make it even more difficult to manage debt after graduation.
Furthermore, it’s crucial to acknowledge the dramatic increase in the cost of doctoral education. Average loan balances for students who completed a research or professional doctorate have approximately doubled between 1999–2000 and 2015–16 for all degree programs5. This trend underscores the growing financial challenges faced by those pursuing advanced degrees.
Debt Management Strategies
Given the significant debt faced by many millennial PhDs, it’s essential to be proactive in managing this financial burden. Several strategies can help ease the burden and provide a path toward financial stability:
- Debt consolidation: Combining multiple federal student loans into a single Direct Consolidation Loan can simplify payments and potentially lower monthly payments6. This strategy can make it easier to manage debt and stay on track with repayment.
- Income-driven repayment plans: IDR plans base monthly payments on income and family size, making them more affordable for those with lower incomes7. These plans can provide much-needed financial relief and help borrowers avoid defaulting on their loans.
- Deferment and forbearance: In situations of financial hardship, such as unemployment or illness, borrowers can request deferment or forbearance to temporarily postpone or reduce their loan payments8. These options provide temporary relief and can help borrowers avoid delinquency.
By understanding and utilizing these strategies, millennial PhDs can take control of their debt and work towards a more secure financial future.
Challenges in the Job Search
While a PhD was once seen as a direct path to a secure academic career, phd job search has become increasingly difficult. Millennials with PhDs face a number of challenges in their job search:
- A shrinking pool of tenure-track positions: The traditional academic career path, with its promise of tenure and job security, is becoming less common. Universities are increasingly relying on adjunct professors and other non-tenure-track positions, which often offer lower pay and fewer benefits9. This shift in the academic landscape makes it more difficult for PhD graduates to find stable, long-term employment in their field of study. For example, a recent study found that over 70% of faculty positions in higher education are now non-tenure track, limiting opportunities for career advancement and job security for PhD graduates.
- Overqualification concerns: Some employers may be hesitant to hire PhD graduates for positions outside of academia, fearing they are overqualified or will quickly move on to other opportunities10. This perception can create a barrier for PhDs seeking to transition into industry or other non-academic careers. A PhD graduate applying for a project management role, for instance, might be perceived as overqualified and potentially a flight risk, even if they possess the necessary skills and are genuinely interested in the position.
- Lack of industry-specific skills: PhD programs often prioritize research and academic knowledge over practical skills and industry experience. This can make it challenging for graduates to compete with candidates who have more direct experience in the field11. To overcome this hurdle, PhDs may need to invest in additional training or seek out internships and other opportunities to gain relevant skills. For instance, a PhD in biology might need to acquire data analysis or project management skills to be competitive for industry roles in biotechnology or pharmaceuticals.
- Geographic limitations: Depending on their field of study, PhD graduates may find that job opportunities are concentrated in specific geographic areas. This can require relocation, which can be costly and disruptive, especially for those with families or other commitments11. A PhD in a specialized field like aerospace engineering, for example, might find that most job opportunities are located in certain regions with a strong aerospace industry, potentially requiring them to relocate and uproot their lives.
These challenges, combined with the pressure of student loan debt, can create a stressful and uncertain job search experience for millennial PhDs. However, it’s important to remember that a PhD can still offer significant career advantages. It can increase earning potential and open doors to more interesting and fulfilling career options9.
Furthermore, technological advancements are changing the landscape of many industries, and PhDs need to be aware of these trends and adapt their skills accordingly. For example, in the tech industry, the increasing use of AI and automation is creating new challenges and opportunities for PhD graduates12.
Example – One Millennial’s phd debt & Job Search
A. Rasberry, a 38 years old Millennial PhD holder accumulated over $250,000 in student loan debt while pursuing her doctorate degree in business management in Saint Leo University in Florida. Despite four years of job searching, she has been unable to find a position that utilizes her qualifications or offers a salary sufficient to manage her debt. In an interview with Business Insider, Rasberry expressed regret for prioritizing education over gaining practical work experience, highlighting the difficulties faced by many millennial PhDs in today’s job market.
Career Paths and Salary Ranges
Despite the challenges, PhD graduates have a wide range of career options available to them. The following table summarizes some of the common career paths and their associated salary ranges:
| Career Path | Description | Average Salary |
| Research Scientist | Conducts research in a variety of settings, including academia, industry, and government. | $94,742 |
| Data Scientist | Analyzes and interprets complex data sets to solve problems and inform decision-making. | $112,469 |
| Assistant Professor | Teaches undergraduate and graduate courses, conducts research, and serves on committees in colleges and universities. | $75,754 |
| PhD Researcher | Conducts research in a specialized field, often within a university or research institution. | $113,102 |
Sources: 14, 15
It’s important to note that these are just averages, and actual salaries can vary significantly based on factors such as field of study, type of employment, years of experience, and geographic location. For example, the median earnings of PhDs in the humanities were $80,000 in 2019, compared to $145,000 for PhDs in engineering and business16.
While academic careers are a natural step for many PhD graduates, a significant number of opportunities exist outside of teaching and education. For instance, 14.5% of PhD graduates work in healthcare, and 11.9% work in construction, engineering, and research and development17. This trend reflects the growing recognition of the value of PhD-level expertise in various sectors. In fact, nearly 80% of PhD graduates pursue non-academic careers17. This challenges the traditional notion of a PhD primarily leading to an academic career and highlights the growing opportunities for PhDs in various sectors.
Resources and Support
Navigating the challenges of debt and job searching can be daunting, but fortunately, there are resources and support systems available to help PhD graduates. These include:
- Loan consultancies: Organizations like Brazos Higher Education and Student Loan Planner offer specialized loan programs and guidance for PhD graduates18. These services can help borrowers understand their repayment options, explore loan forgiveness programs, and manage their debt effectively.
- Support groups: Online and in-person support groups provide a space for PhD graduates to connect with others facing similar challenges, share experiences, and offer encouragement20. These groups can be a valuable source of emotional support and practical advice.
- Debt relief companies: For those struggling with overwhelming debt, companies like McCarthy Law and National Debt Relief offer assistance with debt negotiation and management22. These services can help borrowers explore options such as debt consolidation, settlement, and repayment plans.
Despite the challenges millennial PhDs face, their advanced degrees still hold the potential to open doors to meaningful and rewarding opportunities. By proactively managing debt, acquiring industry-relevant skills, and exploring non-academic career paths, PhD graduates can navigate the evolving job market with resilience and adaptability. While the road may be difficult, the diverse opportunities available outside traditional academia demonstrate that a PhD remains a valuable asset. With the right strategies and support, millennial PhDs can turn their challenges into stepping stones toward a more secure and fulfilling future.
Sources
- https://educationdata.org/student-loan-debt-by-generation
- https://educationdata.org/average-graduate-student-loan-debt#:~:text=The%20average%20inflation%2Dadjusted%20graduate,among%20PhD%20holders%20is%20%2489%2C526
- https://educationdata.org/average-graduate-student-loan-debt
- https://www.silversharkpaddleboards.ca/trends/millennial-phd-job-search-debt
- https://nces.ed.gov/programs/coe/indicator/tub/graduate-student-loan-debt
- https://studentaid.gov/manage-loans/consolidation
- https://studentaid.gov/idr/
- https://studentaid.gov/help-center/answers/article/difference-between-deferment-and-forbearance
- https://www.reddit.com/r/GradSchool/comments/af33cn/do_any_other_millennials_feel_desensitized_to_the/
- https://www.reddit.com/r/Millennials/comments/1ebresl/millennial_with_2_degrees_looking_for_jobs_since/
- https://www.reddit.com/r/Millennials/comments/1fwezq3/a_millennial_with_a_phd_and_over_250k_in/
- https://www.youtube.com/watch?v=X6O6LlJbkmc
- https://www.insightintodiversity.com/doctoral-distress-graduate-program-pressures-impact-student-mental-health/
- https://www.payscale.com/research/US/Degree=Doctorate_(PhD)/Salary
- https://www.ziprecruiter.com/Salaries/Phd-Researcher-Salary
- https://www.amacad.org/humanities-indicators/workforce/earnings-humanities-phds
- https://www.prospects.ac.uk/postgraduate-study/phd-study/your-phd-what-next
- https://studentloans.com/doctoral-loan/
- https://www.studentloanplanner.com/phd-mortgage-home-loans-for-non-medical-doctorate-degrees/
- https://peacehdforphd.com/en/the-phd-experience/phd-support-groups/
- https://www.reddit.com/r/PhD/comments/14r8dt5/are_there_any_online_support_groups_social/
- https://mccarthylawyer.com/student-loan-debt/phd-graduate-students/
- https://www.nationaldebtrelief.com/scholarship-program/