Budgeting Financial Planning Should I Go Back to School in a Recession? Factors to consider when deciding whether to return to college or not By Christy Rakoczy Christy Rakoczy Christy Rakoczy has over 12 years of experience writing about student and personal loans, budgeting, financial planning, and more. She has been published by well-known finance sites including Nasdaq, LendingTree, Credit Karma, The Motley Fool, USA Today, and more. Christy has researched and written thousands of articles during her career. learn about our editorial policies Updated on June 29, 2022 Reviewed by Anthony Battle Reviewed by Anthony Battle Anthony Battle is a CERTIFIED FINANCIAL PLANNER™ professional. He earned the Chartered Financial Consultant® designation for advanced financial planning, the Chartered Life Underwriter® designation for advanced insurance specialization, the Accredited Financial Counselor® for Financial Counseling and both the Retirement Income Certified Professional®, and Certified Retirement Counselor designations for advance retirement planning. learn about our financial review board In This Article View All In This Article School Return vs. Job Search Choose the Right Program Working Part-Time as a Student Finding Money To Return to School The Bottom Line Photo: RichLegg/Getty Images Economic downturns have historically been a popular time to further one's education. During the Great Recession, the number of students who returned to college after being in the workforce grew by 30%, according to the U.S. Census Bureau. Most students had either been in the labor market or otherwise out of school. With a country in a recession, enrolling could improve your job prospects significantly. Research from the last recession revealed that individuals with associate or bachelor's degrees maintained higher levels of employment (and smaller earnings reductions for women) than those without degrees. Recently, people with at least a bachelor’s degree have had far lower unemployment rates compared to those without a degree, according to the Bureau of Labor Statistics. Of course, school tuition and books add up. While financial aid opportunities exist—including scholarships, grants, and private and federal student loans—carefully weigh the pros and cons of a classroom return. Go Back to School vs. Search for a Job Should you keep looking for a job or sign up for classes? Recessions usually extend unemployment periods, and getting hired is challenging—especially for workers that have to shift to new industries—according to a Congressional Budget Office (CBO) report. "Weigh how many available jobs you qualify for without going back to school," said job search expert Ron Auerbach, author of “Think Like an Interviewer: Your Job Hunting Guide to Success.” During recessions, you’ll face tougher competition for the few available positions. If you find you're likely to have few opportunities or don’t have the skills necessary to compete, returning to school may be the ideal option. "Use this time productively by going back to school and positioning yourself for your next career move for when the economy opens up more," said Atlanta-based career coach Hallie Crawford. Schooling also can prevent a gap on your resume if you can’t find work now. Note Even in normal times, more school correlates with a lower unemployment rate and higher earnings; those with a master’s degree have twice the weekly median earnings of those with just a high-school diploma, according to the Bureau of Labor Services (BLS). An associate degree can boost median earnings by $141 a week compared to a high-school diploma, according to the Bureau of Labor Statistics. The Right Program for Future Career Prospects Any courses or future degrees should help you find a new career (or advance your current career) after the recession ends. Reach out to people in your chosen field to research job prospects, and investigate the long-term outlook for the field. "Consider informational interviews with people in your industry or the industries you're exploring to gather information about what it takes to transition into the field," Crawford said. An informational interview is an informal conversation with someone in your field to get career tips, experience, and advice. This conversation can tip you off as to whether school—or how much school—serves your long-term career goals. Research salary data and probable demand for your chosen profession or industry through sites such as BLS, Salary.com, or Glassdoor. Working Part-Time as a Student Deciding to return to school doesn't need to be an all-or-nothing proposition. You can still conduct a job search while taking online or in-person courses, or attend school while employed part-time. Even if you’re working, you won’t feel out of place in the classroom, as many schools today have enrollees who also hold down jobs. Taking classes that fit into your work schedule could be easier than ever before due to the proliferation of online courses that can be taken anywhere in a variety of time zones. "Since many schools are offering online courses, it can be a great opportunity for many professionals," Crawford said. For example, many schools offer evening and part-time MBA classes. Finding Money To Return to School If you plan to return to school, many federal financial aid options exist—despite a recession. Federal loans require you to complete a Free Application for Federal Student Aid (FAFSA), which asks about your financial resources and income. If you've been working full-time until a recent layoff, it may seem like you have more money available for college than you actually do. In this situation, the Department of Education urges returning students to contact the financial aid office at their chosen school—ideally even before completing the FAFSA. With proof of an income change, the school may be able to recalculate your financial aid package. Grants and scholarships may also be available from academic institutions, state or local governments, private companies, or nonprofit organizations. You should explore these sources of funding first as they do not have to be repaid. Note Low-rate private student loans are available, too. Well-qualified borrowers and those with cosigners may be able to access the funding necessary. The Bottom Line Whether you should return to school in a recession depends on your situation. If further college could advance your career prospects, look into your options. You may find that a return to school full-time (or part-time) will boost your career. Do what's right for you over the long term. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. U.S. Census Bureau. "Postsecondary Enrollment Before, During and After the Great Recession." ScienceDirect. "The Value of Educational Degrees in Turbulent Economic Times: Evidence From the Youth Development Study." U.S. Bureau of Labor Statistics. "Unemployment Rate for Persons 25 Years and Older by Educational Attainment." Congressional Budget Office. "Losing a Job During a Recession." U. S. Bureau of Labor Statistics. "Learn More, Earn More: Education Leads to Higher Wages, Lower Unemployment." Federal Student Aid. "Basic Eligibility Criteria." Federal Student Aid. "7 Things You Need Before Filling Out the 2020-21 FAFSA Form."