I've heard of plenty of people doing this. And not just b/c of the economy either... I know of people that just haven't wanted to start working yet, so they go for their masters. At the career fair I went to a few weeks ago, some of the companies that I was talking to were saying that many of the students they were talking to said that they would be heading to grad school if it didn't look like it would be possible to get a job (and unfortunately most of the companies there weren't even hiring interns =/ ). I can't see doing it, but that's just b/c I want to be out of school....I'll keep working at a pizza place until I can find a real job if need be