Applicants who do not gain direct entry into PhD programs after receiving their bachelor's degree have few alternatives if they want to continue their career in psychology. One alternative, enrolling in a terminal master's program, could provide these rejected applicants with a chance to remain in academe, be exposed to psychologists as role models, obtain direct research experience by writing a thesis, and supply 1 or 2 years of additional information concerning the applicant's qualifications and motivation to complete graduate training. However, recent evidence suggests that PhD programs are reluctant to accept applicants who hold terminal master's degrees. The negative implications of such admissions policies are discussed, and solutions are offered to the problems-often cited by PhD programs-'of enrolling applicants with terminal master's degrees. It is concluded that the terminal master's program in psychology should function as a proving ground for qualified applicants who are not accepted directly into PhD programs after completing their undergraduate work.