Although holding a masters degree doesn’t guarantee working in the job of your dreams, or even gainful employment, the recent UK government Graduate Labour Market Statistics 2025 show that postgraduates and graduates do continue to have higher employment rates than non-graduates. The government data also reveals that postgrads are 11.1% more likely to find work in a professional role than their undergraduate-degree-holder counterparts – with 79% of working-age postgrads working in highly skilled professional positions compared to 67.9% of graduates.
Plus, for some highly sought-after careers, holding a masters qualification is an essential rather than just a nice-to-have – for example lawyers, teachers, engineers and architects. And in other professions, for example in the business world, a postgraduate qualification is a sure-fire way to progress your career as efficiently as possible and with the best possible remuneration.
It goes without saying that studying for a masters degree is an expensive undertaking and a decision that’s not to be taken lightly – according to UCAS, the average tuition fees for a UK masters degree are £11,000, but for some courses they can exceed £100,000+. Although if you reframe it as being a career investment rather than a huge financial undertaking, it’s certainly easier to get your head around this outlay. And with the Graduate Labour Market Statistics report revealing that postgraduates go on to have a median nominal salary that is a whopping £16,500 higher than that of non-graduates and £5,000 higher than the median salary of first-degree graduates, this is the right mindset to approach your masters degree studies with. But how do you fund your postgraduate studies?
Calculate the cost of studying a masters course
The first thing you need to do is calculate the actual cost of studying a masters degree. The true cost of studying a masters degree isn’t just the tuition fees; you also need to consider expenses related to books and other study materials, accommodation, transport, food, loss of income, etc. Plus, if you are an international student, you will also need to consider visa fees, insurance, relocation costs and flights home. Be realistic about your outgoings and create a spreadsheet of every potential cost you will need to take into account.
Bear in mind, the cost of living varies enormously within regions of the UK, with London usually being the most expensive. For example, postgraduate halls of residence accommodation at UCL ranges from £7,956–£27,508 for a 52-week contract. Whereas heading away from the capital city can be a more affordable option – the postgraduate accommodation at the University of Leeds can be as little as £6,357 for the year. Think about where in the UK you want to study – for instance, is the location (or the specific institution) relevant to your chosen career? If so, higher costs may need to be undertaken to ensure your preferred career outcome at the end of your studies.
It’s a good idea to make yourself a budget, so you know exactly where your money as a potentially impoverished student will be going. Save The Student has a handy downloadable budget sheet that can help you keep track of all your incomings (loans, parental gifts, part-time income, etc) against all your outgoings (rent, bills, mobile phone, course materials, subscriptions, groceries, socializing, holidays, etc). There are also some great student budgeting and banking apps, such as Monzo, that are handy for keeping an eye on your expenditure.
Remember, unexpected costs can arise, so always build a buffer into your budget to take care of unforeseen emergencies.
Consider the return on investment
Still undecided on whether studying a masters degree is worth your while? Consider the ROI. Start by fully considering why you are studying a masters degree. Is it just a panic masters, something to do because you can’t think of anything better to do? Or will it enhance your future career, happiness, sense of fulfilment and salary potential. For example, with tuition fees of over £120,000, the MBA program at London Business School is undeniably expensive; however, with graduates from this course reporting a 111% increase in salary compared to pre-MBA, it won’t take long to recoup your costs and more! When thinking about the ROI on your prospective masters degree, considerations should include.
- What are your realistic salary expectations upon graduation?
- Will the masters degree significantly improve your employment prospects?
- How essential is the course to your preferred career?
- How long will it take to recover your costs?
- Is there a cheaper course that could provide the same career benefits?
- Will it affect your career to be out of employment for a period of time?
Research sources of funding
Finally, you need to research your funding options properly. Tuition fees for a UK masters degree start at around £10,000 per year for home students depending on the course and university; however, they can cost up to £70,000 per year for international students. And if you are considering a Master of Business Administration, the tuition fees can exceed £120,000 – for example, the tuition fees for the MBA at London Business School are £123,950 for the 15-21 month course for both home and international students. Therefore, finding the correct funding is not only important, but also essential. Potential funding sources can include:
- UK government funding – if you’re starting a masters degree on or after 1 August 2026, the UK Postgraduate Master’s Loan is up to £13,206.
- University scholarships – postgrad-specific university scholarships are often available; these are usually based on various criteria such as location, subject or program type.
- Bursaries – including the Postgrad Solutions Study Bursaries worth £2,000 each.
- Employer sponsorship – if you are undertaking your masters study to enhance your current career, you may find that your employer will contribute towards funding your qualifications.
- Working part-time – although this is a useful way to keep the cash flow moving, it’s important to check that part-time work won’t affect your academic performance by being too demanding on your time. Plus, if you are an international student, make sure you are complying with the rules of your student visa.
- Private loan – some private loan companies offer student-specific funding, but make sure you can meet the repayment terms and read the small print before you sign.
- Personal savings – if you have been savvy enough to build up some personal savings, now could be a good time to dip into those savings rather than rack up debt.
Enhance your knowledge, improve your career
Once you’ve done all your calculations and made sure you can cover your costs, there is no denying that studying a masters degree is a great way to enhance your life in so many ways. It will provide you with specialist knowledge, enable you to network with like-minded students, give you the potential to achieve the career of your dreams post-graduation, and much more. If you need more help on choosing the right masters degree, Postgrad.com lists postgraduate courses worldwide and publishes funding information and advice for both home and international students.
