1. Am I pursuing my passion? 

When you think of your intended field of study, does your face light up with a smile? Or do you dread several years of trudging through more school work? More importantly, what kind of feeling do you get when you think about actually working in your chosen field?

Forget about the financial part of the equation and focus on how you will feel waking up every morning going to work in your chosen field.

If the thought of what the actual workday will look like in your profession doesn't make you break into the biggest grin ever, consider it as a warning sign. While everyone dreads work on occasion, ask yourself if you could spend 13 of your estimated 79 years of life on this profession.

If you plan to stick it out and stomach work, you're not truly passionate about just for the money – think twice. After all, you don't need to spend a dime if all you seek is a job to pay the bills. And while graduate school does open some doors, it also costs a lot regarding the money and time you could spend building your career from square one.

2. What professional opportunities will it open? 

Once you decide on a field you're passionate about, you need to know what career doors you expect it to open for you after graduation.

A lot of people pursue the Ph.D. track with hopes of landing a job in academia, for example, but academic job prospects are shrinking in comparison to the percent of doctoral candidates. And while it's possible to land a well-paying job in fields where the market is glutted with other candidates, it does add difficulty.

Research what the potential job market is like in your chosen field. Remember whether or not you land your dream job after graduation, you'll still need to afford a place to live and food on the table.

3. Am I willing to graduate with high debt?

Many graduate schools come with a hefty sticker price, sometimes costing hundreds of thousands of dollars — as much as the price of a nice home in many areas. Are you truly prepared for that sort of a debt load?

Think carefully about how carrying several thousand, if not hundreds of thousands, in student loan debt will affect your future ability to do things such as buy a home. It can take considerable time to pay down student loan debt, during which time you'll likely also pay into making your landlord wealthier.

So as much as you want to pursue your dream, don't overlook the financial reality of your situation.

4. Am I prepared to be overqualified? 

One of the most frustrating things reported by those who have graduated with advanced degrees is the dreaded phrase: "I'm afraid you're overqualified." While graduate school can be a ticket to a higher paying job, if one doesn't immediately materialize you'll still need to do something.

Many companies hesitate to hire new graduates just out of school fearing the candidate will quit once a better opportunity comes along. Others may have a strict salary ladder in place and may only have the budget to hire someone suited for a lower rung on the salary ladder.

5. Have I taken time to think this through? 

How long have you been considering graduate school? If you've only just begun to consider the option the semester before you graduate from undergrad studies, take some time to think it over. Graduate school is rarely a substitute for real-world work experience. And just as you wouldn't buy the first home you see, you shouldn't be anxious to spend a lot on further schooling on a whim.

Consider pursuing a gap year if you aren't certain of your next steps — many Americans take a gap year between schoolings.