'Will I Have More Money In The Long Run By Taking Out Student Loans Instead Of Paying Cash?' Suze Orman Weighs In

For many adults returning to school later in life, one of the biggest questions is how to pay for it. A recent listener of Suze Orman‘s "Women & Money" podcast, Will, faced this exact dilemma. 

At 35, Will is planning to pursue a master's degree in nursing — a move he hopes will boost his earning potential. The program will cost about $30,000 over three years. Will has enough savings to cover the tuition but wonders if taking out student loans might help him come out ahead financially in the long run.

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The Case for Paying Cash

Will's situation is fairly strong: he works full-time as a nursing director, has about $100,000 in retirement savings, another $130,000 in IRAs and other assets, and owns a home. His only debt, outside of his mortgage, is $30,000 in existing student loans — and he admits he "hates" having that debt.

That's where Orman focused her advice.

"If you have the money now to be able to pay $10,000 a year towards it, I would do that rather than going into debt," she said. Orman noted that Will's emotional response to his existing debt — that he hates it — should be taken seriously. Carrying more debt, especially when it causes stress or frustration, could undermine the benefits of the degree.

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Is the Master's Worth It Financially?

Before making a decision, Orman urged Will to research how much more he could realistically earn with a master's in nursing. "You really need to check and see what would that do for you financially," she said. That means weighing the future salary boost against the cost of the degree — and considering what those funds might grow into if invested instead.

This advice echoes research from the Foundation for Research on Equal Opportunity, which found that nearly 43% of master's degree programs leave students financially worse off. While some professional degrees — like law, medicine, and dentistry — tend to deliver strong returns on investment, many master's programs don't provide enough of a salary bump to justify the high tuition costs.

The study did show that master's degrees in nursing tend to have a "very strong ROI," so that could play in Will's favor should he choose to pursue a higher degree. 

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Student Loans: A Tool, Not a Default

Student loans aren't necessarily bad — but they should be used with caution, especially later in life. Taking on more debt in your 30s or 40s can stretch into your 50s and beyond, potentially affecting your ability to save for retirement or meet other financial goals.

Orman's takeaway? If Will truly believes in the value of the degree and can pay for it out of pocket without sacrificing financial security, that's the better route. But if the ROI isn't compelling — or if the debt would bring emotional and financial strain — he may want to reconsider.

Bottom Line

Going back to school is a personal decision, but the way you fund it should be a financial one. Before choosing loans over cash, compare the real cost of borrowing with the potential salary gain — and ask whether taking on new debt aligns with your financial peace of mind.

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