By Michelle Singletary

Sunday, January 16, 2005; Page F01

If an undergraduate degree is your ticket to a middle-income job, is it also a foregone conclusion that a graduate degree will boost your salary even higher?

And if that is true, is it then worth it to pile on more student loan debt to obtain a master's or a professional degree?

Some experts think so. In fact, the College Board, a nonprofit association that is best known for its SAT program, goes out of its way in a report, "Education Pays: The Benefits of Higher Education for Individuals and Society," to tout the economic benefits of higher degrees.

In the report, Gaston Caperton, College Board president, writes that "in the current climate of rising college prices and budget constraints at all levels of government, it is particularly important that the benefits of higher education receive as much attention as the costs."

In 2003, the median income for a full-time, year-round worker in the United States with a four-year college degree was $49,900 annually, up from the $30,800 earned by the comparable worker with only a high school diploma, the College Board report found.

But the median for workers with master's degrees was almost twice as much per year ($59,500) as for those with just a high school diploma. And those with professional degrees earned more than three times as much per year ($95,700) as a high school graduate.

This last set of figures is impressive. To me it says a four-year degree is the meat, but a graduate degree is your earnings gravy.

But hold on.

Is that the case for everyone?

The earnings figures cited by the College Board represent median earnings, meaning half the folks made more -- and half made less.

Recently I addressed a group of young people. Afterward, one young woman wanted some advice on whether she should get a master's degree in a language program. The plan, she said, was to attend a college in California (she lives in New Jersey). She expects to get a fellowship, but it would pay her only about $17,000 a year. That wouldn't be enough to pay all her expenses, she said.

Here's what I asked that young woman, followed by her responses:

• Do you have a budget for your living expenses while you're in grad school? Her answer: "No."

• So if you know that $17,000 won't be enough to live on in California, where will you get the extra money you need for all your living expenses? Her answer: "I don't know. Loans, probably."

• If you think you'll have to borrow, have you figured out the total you'll need and what your monthly payments will be once you graduate? Her answer: a blank stare.

• What kinds of job opportunities are available for someone with the master's degree you are pursuing? Her answer: "I really don't know."

• Have you done any research to see if this degree will in fact improve your earnings potential and offset the tens of thousands of dollars you will probably have to borrow? Her answer: another blank stare.

When I finished, the young woman looked as if she were going to cry.

My intent wasn't to dash her higher education dreams but to drive home a point.

How could she (or you) take on all this debt for a graduate degree without knowing if it might really be worth it?

If you're getting the degree with hopes of significantly boosting your income, what happens if nobody shows you the money? How will you pay off those student loans given that income levels have not increased at the same rate as the student loan debt levels people are taking on?

Nellie Mae, a student loan lender, found that as the amount of monthly income devoted to student loans rises, so do the negative feelings and stress about that education debt.

Borrowers who devote less than 7 percent of their gross monthly income to pay their education debt generally do not feel stressed about their student loan. However, those with education-debt-to-income ratios of 12 to 16 percent do feel overwhelmed, according to Nellie Mae.

Not surprisingly, when debt-to-income ratios exceed 17 percent, the negative feelings about the debt and the difficulty of paying it off are particularly high.

I'm certainly not suggesting people shouldn't get graduate degrees. However, if you're considering going back to school, do a cost analysis.

FinAid, a Web site that provides student financial aid information, has a terrific loan repayment calculator. Go to www.finaid.org and search for "loan payment calculator."

I bet you'll be shocked by how much you have to earn to be able to afford the student loan payments.

The truth is that an advanced degree doesn't always translate into plump paychecks.

Michelle Singletary discusses personal finance Tuesdays on NPR's "Day to Day" program and online at www.npr.org. Readers can write to her at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071 or send e-mail to singletarym@washpost.com. Comments and questions are welcome, but because of the volume of mail, personal responses may not be possible. Please also note that comments or questions may be used in a future column, with the writer's name, unless a specific request to do otherwise is indicated.