Is it worth taking a large loan to pursue a master's at a top US university given the expected starting salary?
It is worth it mainly for high-yield STEM majors and top-tier MBAs, where starting salaries of over a hundred thousand dollars comfortably cover a large monthly loan EMI, while humanities and lower-tier programs with much smaller salaries can turn the same loan into a genuinely negative return over time.
Whether this loan is worth it depends almost entirely on your major, not on the university's overall brand name. A computer science or top MBA salary absorbs the debt easily, while a humanities salary at the same loan size can leave you underwater.
Expected ROI by Major
| Major | Starting Salary | ROI |
|---|---|---|
| Computer science / AI | $110,000 to $140,000+ | Highest |
| MBA (M7 or top 15) | $130,000 to $200,000+ | Strong |
| Core engineering / analytics | $85,000 to $110,000 | Good |
| Humanities / social sciences | Under $70,000 | Risky |
Run Your Own Numbers
- A $100,000 loan at 12 percent over 10 years runs about $1,435 a month, or over $17,000 a year in debt service alone.
- Follow the 1x rule: never borrow more than your expected first-year gross salary.
- Actively hunt for teaching, research or graduate assistantships, which can waive tuition and add a monthly stipend.
- Factor in your H-1B lottery outcome, since failing to secure it means repaying a dollar loan potentially on an Indian salary.
My Advice
Before you borrow, write down your specific major, your realistic starting salary range, and your total loan amount, then check whether the 1x rule holds. If it does not, apply harder for assistantships or scale down to a public university in a lower cost-of-living region rather than accepting an oversized loan on faith.
Will you actually get a job after your US master's?
Talk to a counsellor about real outcomes, salaries and which courses employers hire from.
More Post-study work questions
- Is a loan sanction letter from the government regulated Indian Bank accepted for a UK student visa application?
- What are some effective online German language classes for Indian students preparing to study in Germany?
- By when should my HEP point be completed, should it be this month to avoid delay in UK?
- If I apply to two courses at the same university, do I need separate letters of recommendation for each course or can I use the same letter for both?
- Is Germany the best first priority country for my course and career scope for a Master's?
- Which universities in the USA offer MS Engineering Management for a B.Tech Automotive Engineering graduate, Duolingo 120 and ₹80 lakhs budget?
- Can I pursue an MBA abroad after completing a Bachelor of Science degree?
- Is it better to spend 12 lakhs in India or go abroad for higher studies in Germany for a Master's?
More USA questions
- Is the USA the best country option for my AI or data science master's program, or should I consider other countries in UK/Canada?
- What are the differences in career opportunities and PR options between Germany and Canada?
- Can I apply for an education loan up to 30 to 35 lakhs or 30 to 40 lakhs budget?
- What are the visa application chances and procedures for USA compared to Australia?
- Is my daughter planning to settle down abroad with permanent residency or just study in Singapore/USA for a Master's?
- Is the scholarship available for the next intake in USA for a Master's?
- Will I be eligible for a post-study work permit after completing my master's degree in history in USA?
- What are the total annual fees of Harvard University in Indian rupees for Indian students?