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But the loans would be crushing, even if I could beg, borrow and steal.
Still, you'd have an MA in English.
You want to take out loans for an MA in english/history? barf.
Go with the one that puts you in deeper debt.
When I was applying to grad school, I was looking at MA programs in political science. One of the professors who helped me out a lot told me never to attend a grad school without funding, particularly in a non-professional/terminal degree program. I effectively ended up taking his advice, given I was funded the whole time, but, even if I hadn't been funded, I probably would have gone anyway. In retrospect, however, he was 100% right, and I was lucky to have avoided learning that the hard way. It's just not worth ending up with a ton of debt, especially for an MA in something like English.
Do you have an MA in History?
My thinking is definitely along these lines -- and I know the second choice is a good enough program that it would allow such a transition (especially with the teaching experience it comes with), but still, dream school