Is Stacking Degrees Worth It? Debt Lessons & Data Analysis (Guide)

Over the last decade, the landscape of higher education has shifted toward a “more is better” philosophy. National Center for Education Statistics (NCES) data reveals that graduate enrollment increased by 14 percent between 2010 and 2021. Many students, including myself during my early career, viewed additional degrees as a safety net against a volatile economy. However, without a clear education statistics interpretation, this path often leads to a cycle of debt rather than a ladder to success.

What is Degree Stacking and Why is it Trending?

Degree stacking is the process of earning multiple academic credentials in a sequence, such as a bachelor’s followed by two master’s degrees. This trend is driven by the belief that extra credentials provide a competitive edge in the labor market. However, data shows that the return on investment (ROI) varies wildly depending on the field of study and debt load.

I remember sitting in a small apartment in 2012, looking at my second master’s degree diploma. At that moment, I felt like a high achiever. In reality, I was a data point in a growing trend of “over-credentialing.” According to the Integrated Postsecondary Education Data System (IPEDS), the number of master’s degrees awarded annually has risen steadily for twenty years. Many of us pursued these degrees not because a job required them, but because we were unsure of our next career move.

The logic seems sound: if one degree is good, two must be better. But when we look at the Bureau of Labor Statistics (BLS) career outcomes by degree, the reality is more nuanced. For many roles, a master’s degree provides a significant salary bump. For others, the “earnings premium” is negligible compared to the cost of the degree. Understanding these distinctions is the first step in making evidence-based degree choices.

The Financial Reality of My $120,000 Debt Lesson

The financial reality of degree stacking involves calculating the total cost of tuition, interest, and lost wages during the years spent in school. When these costs exceed the projected lifetime earnings increase, the degree becomes a financial liability. My personal journey resulted in over $120,000 in debt, a figure that took years of data-driven planning to manage.

When I started my journey, I didn’t use the College Scorecard to look at debt-to-earnings ratios. I simply assumed that as a “doctorate-track” student, the money would follow. This is a common mistake. Based on NCES data, the median student loan debt for those completing a master’s degree in 2019-2020 was approximately $50,000, but this varies by field. In the humanities and arts, the debt often outweighs the starting salary by a factor of two or three.

• Initial Bachelor’s Debt: $25,000
• First Master’s Degree: $35,000
• Second Master’s Degree: $40,000
• Accumulated Interest: $20,000
• Total Debt at Entry to Workforce: $120,000

This debt level meant that my first few years of post-graduate earnings were diverted almost entirely to interest payments. I was “overqualified” for entry-level roles but lacked the years of experience needed for senior positions. This is the “experience gap” that many degree stackers face.

How to Use NCES Data to Evaluate Your Next Move

Evaluating your next move with NCES data involves accessing the “Condition of Education” reports and the “Digest of Education Statistics.” These resources provide a high-level view of enrollment trends, graduation rates, and post-completion outcomes. By analyzing these datasets, you can determine if your intended degree is seeing an oversupply of graduates or a genuine demand.

When I consult with institutions today, I point them toward the IPEDS college data analysis tools. For an individual student, the “Data Explorer” on the NCES website is a goldmine. You can look up specific institutions and see their “Median Debt Upon Completion.” If the median debt for a master’s in your field at a specific school is $70,000, but the starting salary in your region is $55,000, the data is telling you to pause.

Key Metrics to Track in NCES Datasets

• Completion Rates: The percentage of students who finish the program within the expected timeframe.
• Net Price: The actual cost after grants and scholarships, not just the “sticker price.”
• Debt-to-Earnings Ratio: A comparison of what you will owe versus what you will likely earn in your first year.

Building on this, you must look at the “longitudinal outcomes.” This refers to how graduates are doing 5 or 10 years after they leave school. Some degrees have a slow start but a high ceiling. Others have a high starting salary that plateaus quickly. The NCES “Baccalaureate and Beyond” (B&B) survey is an excellent tool for this specific interpretation.

Analyzing BLS Career Outcomes by Degree Level

Analyzing career outcomes involves using the Bureau of Labor Statistics Occupational Outlook Handbook to find the “typical entry-level education” for a profession. The BLS also provides data on the “median annual wage” and “projected growth rate” over a ten-year period. This allows you to verify if a second degree is actually a requirement for your target job.

Interestingly, many students pursue a master’s degree for roles where the BLS reports that a bachelor’s degree is the standard. For example, in many marketing or management roles, experience often carries more weight than a second graduate degree. Below is a comparison table based on recent BLS and NCES data to illustrate the earnings premium across different levels.

As a result of this data, we can see that while a master’s degree increases median earnings by about $12,000 annually, it often doubles the debt load. If you are stacking two master’s degrees, you may be adding $80,000 in debt for a salary bump that only applies to one of those credentials. This was my mistake. I was collecting degrees that didn’t “stack” their value; they only stacked my debt.

The Overqualified yet Under-experienced Trap

The overqualified yet under-experienced trap occurs when a candidate has high-level academic credentials but lacks the practical work history required for mid-to-senior level roles. Employers may view these candidates as “flight risks” or assume they will demand a salary that exceeds their actual productivity. This mismatch is a significant risk for those who stay in school too long.

In my own career, I found that having two master’s degrees actually made it harder to get my first “real” job. Hiring managers would look at my resume and ask, “Why were you in school for seven years straight?” They weren’t impressed by my stamina; they were worried about my lack of office experience.

• The Resume Risk: Multiple degrees without internships or jobs suggest a “professional student” mindset.
• The Salary Mismatch: You may need a “master’s level” salary to pay your loans, but your skills only command an “entry-level” wage.
• The Opportunity Cost: Every year in school is a year of lost wages and lost Social Security contributions.

To avoid this, I now advise students to use the “1-to-1 Rule.” For every year of advanced schooling, you should aim for at least one year of relevant work experience. This balances your resume and ensures your education statistics interpretation is rooted in the reality of the labor market.

How to Cross-Reference IPEDS and College Scorecard Data

Cross-referencing IPEDS and College Scorecard data involves looking at an institution’s institutional-level data (IPEDS) and comparing it to the student-level outcomes (College Scorecard). IPEDS tells you about the school’s health and spending, while the College Scorecard tells you about the students’ success after they leave. This dual-layered approach provides a more complete picture of educational value.

When you use the College Scorecard, focus on the “Earnings After Schooling” section. This data is now broken down by specific major at specific schools. This is a game-changer for evidence-based degree choices. You no longer have to guess if a Master of Arts at University A is worth it. You can see the actual median earnings of people who graduated from that exact program two years ago.

Step-by-Step Data Validation Plan

1. Identify the Program: Use the College Scorecard to find the specific major and degree level.
2. Check Median Debt: Look for the “Median Debt” specifically for that program, not the whole school.
3. Compare Earnings: Look at the “Median Earnings” 2-3 years post-graduation.
4. Calculate the Ratio: If the debt is higher than the annual earnings, the program is high-risk.
5. Verify Demand: Go to the BLS Occupational Outlook Handbook to see if the job market for that major is growing or shrinking.

By following these steps, you are moving away from anecdotes and toward a rigorous, analytical framework. This is how you avoid the mistakes I made. You are not just buying a degree; you are investing in a future cash flow. If the numbers don’t add up, the prestige of the school won’t save your bank account.

Resolving Conflicting Statistics Across Sources

Resolving conflicting statistics requires an understanding of the methodology used by different agencies. For instance, the BLS measures “occupations,” while the NCES measures “graduates.” These two numbers may not align if many people with a certain degree work in a different field. Recognizing these differences allows for a more accurate interpretation of education data.

Sometimes you will see a report saying, “Master’s degree holders earn 30% more.” Another report might say, “The value of a master’s degree is declining.” Both can be true. The first is likely an average across all fields (including high-paying ones like Engineering). The second might be looking at “underemployment” rates, where graduates are working in jobs that don’t require their degree.

• Look at the Sample Size: Large surveys like the NCES “Current Population Survey” are generally more reliable than small, private surveys.
• Check the Timeframe: Data from 2018 may not reflect the post-pandemic labor market.
• Define the Metric: Are they talking about “mean” (average) or “median” (middle) earnings? Medians are usually a better reflection of what the “typical” student can expect.

By being a critical consumer of data, you can filter out the noise. Don’t let a flashy brochure from a university be your only source of information. They are selling a product. The BLS and NCES are providing a public service. Trust the data that doesn’t have a vested interest in your tuition check.

Practical Insights for Policymakers and Advisors

For policymakers and advisors, interpreting complex education statistics means looking at systemic trends like “credential inflation.” This is the process where employers raise the minimum education requirement for a job even though the job’s tasks haven’t changed. Understanding this helps in creating better guidance for students and more effective education policies.

Advisors should be wary of recommending “bridge” degrees—short master’s programs that promise to make a student more employable. Instead, the focus should be on “stackable credentials” that have a clear, documented link to industry certifications or specific salary tiers.

• Evidence-Based Advising: Use the “College Scorecard” in every meeting with students.
• Policy Focus: Support programs that have high completion rates and low debt-to-income ratios.
• Data Transparency: Encourage institutions to publish clear, easy-to-read outcomes for every department.

As a researcher, I have seen that the most successful students are those who treat their education like a business decision. They look at the data, they weigh the risks, and they are not afraid to walk away from a program that doesn’t offer a clear ROI. This analytical approach is the best defense against the “degree stacking” trap.

Actionable Metrics for Your Education Journey

Actionable metrics are the specific numbers you should use to guide your decisions. These include the 10-year earnings premium, the graduation rate of your specific program, and the “loan repayment rate” of the institution. These metrics provide a concrete way to measure the potential success of your educational investment.

If a program doesn’t meet these targets, it doesn’t mean you shouldn’t go. It means you need a very specific reason and a very clear plan for how you will beat the averages. For most of us, the “average” outcome is exactly what we will experience. Betting that you will be the one exception to the data is a high-stakes gamble that rarely pays off.

Frequently Asked Questions

What is the most reliable source for starting salaries by major?

The College Scorecard is currently the most reliable source for this data. It uses federal tax records to track the actual earnings of students who received federal financial aid. This is much more accurate than “self-reported” surveys from alumni, which often suffer from response bias (only the successful people tend to respond).

Is a second master’s degree ever worth the cost?

A second master’s is rarely worth it unless it represents a total career pivot into a high-ROI field, such as moving from the arts into data science or nursing. Even then, you should look for “bridge” programs or certificates rather than a full degree. The BLS data shows that “work experience” in the new field is often more valuable than a second set of letters after your name.

How do I find the “underemployment rate” for my major?

The Federal Reserve Bank of New York publishes a regular report on “Labor Market Outcomes of College Graduates.” This report specifically tracks underemployment rates—the percentage of graduates working in jobs that typically do not require a college degree. This is a vital metric for understanding if your field is oversaturated.

Does the prestige of a university matter in the data?

The data shows that prestige matters significantly in a few specific fields, like law, high-end finance, and management consulting. However, for the vast majority of “middle-market” jobs, the ROI of an expensive private school is often lower than that of a high-quality state university. IPEDS data often shows that state schools have similar graduation and employment outcomes at a fraction of the cost.

How can I tell if a degree is “required” or just “preferred” by employers?

Check the BLS Occupational Outlook Handbook under the “How to Become One” tab for your target career. If it says “Bachelor’s degree is the typical entry-level requirement,” then a master’s is likely a “preferred” but not “required” credential. You can also search LinkedIn for people in the roles you want and see how many of them actually have the advanced degree you are considering.

What is the “Rule of Threes” in education data?

The Rule of Threes suggests you should look at three different data sources before making a decision: one for cost (NCES/IPEDS), one for career demand (BLS), and one for actual student outcomes (College Scorecard). If all three sources point to a positive outcome, your decision is evidence-based. If they conflict, you need to investigate further.

Why is the “Median” more important than the “Average” in education stats?

Averages can be skewed by a few extremely high earners (like a celebrity CEO who graduated from a small program). The median represents the middle point—half the people earn more, and half earn less. This gives you a much more realistic expectation of what the “typical” student will experience after graduation.

What should I do if I already have high debt from stacking degrees?

The first step is to stop adding to the debt. Focus on “upskilling” through certifications or work experience rather than more degrees. Use the BLS data to identify “adjacent” careers that might pay more for the skills you already have. Your goal should be to maximize your current credentials rather than hoping a new one will solve the problem.

How do I calculate my own “Earnings Premium”?

Take the median salary of the job you can get with your current degree. Then, look at the median salary for the job you hope to get with the new degree. Subtract the first from the second. If that “premium” isn’t enough to pay off the new degree’s loans within 5 to 10 years, the investment is likely not sound.

Is there a “completion risk” with graduate degrees?

Yes. NCES data shows that completion rates for graduate programs can be lower than for undergraduate programs, especially for part-time students. If you take out loans but don’t finish the degree, you have all the debt and none of the earnings premium. Always check the “graduation rate” of a program before enrolling.

(This article was written by one of our staff writers, Kevin Marlowe. Visit our Meet the Team page to learn more about the author and their expertise.)