I think there is a preference for students without Master's degree, especially since students with Master's degrees cost more (Schools have to pay student with Master's degree more for TAships and GSRship).
Not necessarily. All programs do not pay students with master's degrees more. I know plenty, including myself, who get the same stipend as everyone else.
Great...now I'm really discouraged 🙁
It can be discouraging, especially after I first received this information. You have to be prepared to address it. In my case, I started telling people I understood that I might be required to re-take classes, that my degree was not in clinical psych so I had no previous clinical training they would need to re-do, etc. Point out your strengths, and maybe they'll overlook that pesky extra piece of paper.
And, again, this is dependent upon program and even professors within the program. Some programs may discourage it, or not even have a policy regarding it (official or otherwise), but there may be some profs who prefer students with master's degrees (I ran into a few).
Wouldn't most Master's students end up being less since they most likely spend one less year at the program, and thus one less yearly stipend?
Not necessarily. Just because you have a master's doesn't mean you're getting out any earlier. I will be around for as long as anyone else in my cohort. The program is structured so that I am *allegedly* supposed to be able to leave a year earlier. It will not happen because I will not have the clinic hours necessary to be considered even remotely competitive for internship. And they readily admit it.
I think most programs tend to accept less Master's students because less applicants have Master's. Also, some programs want to fully train their applicants...That's what I've been told, at least.
Part of it is this, i.e., they want to verify that folks are trained according to what they want and not have to worry about previous training being an issue. Additionally, with classes that have relatively small class sizes, they also have to be concerned about meeting enrollment requirements in order to offer them. If they have 'x' number of students with master's degrees who are allowed to transfer credit for a course, then the dept may not be able to offer the course to the rest of the cohort if there aren't enough of them to meet that minimum requirement.