Having had a wonderful experience in your undergraduate Literature courses is not, in itself, a good reason to go on to graduate school (as gratifying as it is for us to hear!). It does defer your entry into the job market for a few years. It does, undeniably, provide the heady thrill that comes with challenging yourself intellectually. But if you're considering university teaching as a career, you should first do some research about the investment of time and commitment this involves, both during your 5-7 years in a PhD program and afterward. Start by reading my FAQ about what professors do all day. Canvass the professors you've known best, as well as your former and current TA's (as grad students themselves, they are "in the trenches," so to speak), and any fellow students you may have known as undergraduates who have since gone on to an advanced degree program.

You should also be aware of the deep depression of the academic job market, which predates the current economic recession. If your aim is to have a job exactly like that of your professors, look at the sobering statistics that indicate how much more difficult such an achievement is for your generation than it was for mine--universities simply have not replaced tenure-track faculty to the degree they once did. This means that many highly intelligent and qualified PhDs are and will continue to be un- or under-employed in their chosen field, and go on to do other things. This is not to say, categorically, that no one should go to graduate school and try to get those positions that are out there: it's just that you should pursue this career path knowing full well that it will be difficult and competitive, and that you may end up teaching in a different kind of setting than the one you might optimally imagine--or end up not teaching at all. Nationwide, across all advanced degree programs, about half of the students who begin will drop out before completing the degree. Some PhDs in Humanities fields eventually re-route to another career path (e.g. secondary teaching and/or administration, research, foundation and grant work.)

For one rather sobering screed against going to grad school in the Humanities, see William Pannapacker's much-circulated article titled "Just Don't Go": I disagree with some of the propositions here, but it's worth reading and discussing. Then you should read this rebuttal to that author's work by Jonathan Senchyne, a current PhD student. Another humorous and wise piece about the decision to go to graduate school in history can be found here.

To succeed, you need to have a strong sense of vocation as well as the willingness and ability to mold yourself to the demands of the profession. By "vocation" I mean the passionate conviction that what you are researching and writing about matters in the world, and that you are personally bound to see your discoveries through with every talent, and every scrap of self-discipline, you can muster. By "profession" I include all the training in guild-membership that now goes on in graduate school: lessons, both explicit and implicit, in how to identify an original research topic, how to submit an essay for publication, how to give a paper at a conference, how to be an effective teacher, how to network, how to polish your job applications, and so on. You will need both of these--and an unpredictable measure of luck--to end up as a college or university researcher and teacher.

Some people, reasonably enough, think it might be best to try out the academic life in a master's program before committing to a PhD. Here are some general pros and cons of choosing a PhD program (which generally involves 2 years of taking classes, followed by general exams, and then by the writing of a dissertation, with teaching interspersed throughout):

PROS:
Eligible for internal and external funding (you won't live like a pasha, but you will have at least some source of support besides student loans--ideally no loans at all)
Lots of paid teaching practice
Understood as a sign of your seriousness of intent (i.e. sense of vocation)

CONS:
5-7 year commitment
Funding may not cover all your expenses, especially if you are at a public university and/or in an area with a high cost of living
Difficult to change schools midstream--it's not common practice to "transfer" at the PhD level

Master's programs generally involve two years or less of coursework and a thesis. There's usually little, if any, teaching involved (but ask about this):

PROS:
You are not committed financially or emotionally for more than 2 years
Degree qualifies you for better secondary-school and administrative positions and salaries than one would receive with a BA

CONS:
More difficult to get funding
Not a sufficient credential for most college teaching jobs, including community colleges
At some universities, there is a bias against “mere” master’s students (though this is not the case everywhere)

When you've made a decision about the level and kind of graduate programs you wish to apply to, research the programs in detail. Talk to me and to other professors in the field about what they think the most exciting and substantial programs in a particular discipline may be. Find out how well each school supports theirgrad students, and what their jpb placement record looks like. Ask around. Use rankings (like those of the US News) with great caution; they tend to be much more subjective when considering graduate programs than undergraduate ones. My verbal "rankings" are of course subjective as well--I'll talk with you about first-tier, second-tier, and third-tier programs that match your specific areas of interest--but they are based on my 20+ years of experience in academia, including many visits to other campuses. I would never advise you to go to a place I consider to be a third-rate PhD program, even if they offer you funding.

Think hard about whom to ask for recommendation letters. Spend as much time polishing, and vetting, your personal statement as you can; that and the writing sample will mean more to most admissions committees than your test scores.

For some helpful suggestions on the logistical aspects, see the UCSC Career Center's site on planning for graduate school.