Grad Schools Gain as Economy Worsens
More students are turning to graduate school because of the economy.
AUSTIN, Texas, Dec. 19, 2008 -- Demand for admission into graduate school business programs is breaking records because of the waning economy, according to the Graduate Management Admission Council.
In the 2008 fiscal year, 250,000 GMAT tests were taken. The previous record of 244,000 occurred in 2002.
GMAC conducts research on graduate business programs within the United States to track trends in student admissions.
"We tend to see that over the last 40 years there is a distinct correlation between the numbers of students who take the test [GMAT] and economic downturn," said GMAC spokesman Sam Silverstein.
The Law School Admission Council and the Council of Graduate Schools, which respectively track law graduate programs and general graduate programs, have not conducted any recent surveys but expect the next admissions data collection to show a similar upsurge.
Wendy Margolis, spokeswoman for LSAC, said that the organization has only a fourth of the data needed to determine whether the waning economy has affected admissions into law schools. But, she said, a 15.3 percent increase occurred in LSAT registrations in June.
"Sometimes there is a lag between news of a poor economy hitting and then people figuring out what to do since law school requires applying so far in advance," Margolis said.
But double-digit increases during tough times are nothing new. In 2001, law schools saw a 17.6 percent increase in admissions for the fall of 2002. That was a figure far from average, Margolis said.
Typically, schools see on average a 2 percent increase per admission cycle.
For law schools, 48 percent of the booming student population represents students between the ages of 22 and 24, illustrating a student demographic that does not hesitate between degrees.
"I'm in grad school because I wanted to avoid getting a job," first-year UCLA graduate law student Ryan Ward said. "I'm happy I don't have to enter the job market for a few more years."
But while some enter graduate schools to avoid the work force, others are hit by the economy in a different way -- they cannot afford another degree.
"I've put myself in debt by going to college, and I don't anticipate increasing my pay with my degree in a drastic way from what I already make right now," said senior Texas A&M undergraduate Ry Blaisdell.
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