Examining the Return on Investment for College Degrees

How Career Prospects Influence Degree Choices

The potential for future earnings and career opportunities can significantly influence the decision to pursue certain college degrees. However, not all degrees offer a higher return on investment (ROI) compared to entering the workforce straight after high school. In fact, some degrees might cost more than the financial benefits they provide.

Understanding the ROI of a Degree

A graphic, created by Kayla Zhu from Visual Capitalist, presents the average ROI for various degrees in the U.S. This data is based on an analysis by CollegeNPV, which used information from the U.S. Department of Education and Bureau of Labor Statistics. The ROI of a degree is calculated by comparing the expected lifetime value of the degree (minus any debt) to the potential earnings of someone entering the workforce after high school.

STEM Degrees Offer the Highest ROI

The following list shows the average ROI for various fields of study in the U.S.: - Engineering: $570,616 - Computer and Information Sciences: $477,229 - Mathematics: $340,875 - Engineering Technicians: $311,141 - Business: $205,191 - Architecture: $196,711 - Nursing and Health Professions: $194,756 - Physics, Chemistry, and Geology: $168,822 - Social Sciences: $118,454 - Interdisciplinary Studies: $69,656 - Biology: $63,913 - Agriculture: $59,556 - Area, Ethnic, Cultural, Gender, and Group Studies: $42,959 - Legal Studies: $38,999 - Natural Resources and Conservation: $28,985 - Communication and Journalism: $28,654 - Homeland Security, Law Enforcement, and Firefighting: $27,284 - Foreign Languages: $25,750 - Public Administration and Social Services: $7,787 - Philosophy and Religious Studies: $6,011 - History: $4,938 - Fitness, Parks, and Recreation: -$1,078 - Liberal Arts and General Studies: -$13,337 - Psychology: -$15,644 - Education: -$20,075 - Family and Human Sciences: -$24,540 - Communications Technologies: -$28,911 - English Language: -$39,057 - Theology: -$91,749 - Visual and Performing Arts: -$104,015 In terms of expected lifetime income minus debt, the most valuable degrees in the U.S. are in engineering, computer and information sciences, mathematics, and engineering technician fields.

Specific Degree Programs and Their ROI

When considering specific programs, Harvard University’s computer science degree tops the list for ROI according to CollegeNPV. Graduates from this program can expect an ROI of over $4 million in their lifetime, with a median income of $256,539 and median debt of $14,000. Conversely, humanities degrees such as visual and performing arts, theology, and English language are among the least valuable in terms of lifetime earnings. For instance, English language programs, with a negative ROI of about $39,000, have seen the greatest decrease in graduates, with 32% fewer students completing these programs compared to a decade ago.

Bottom Line

The return on investment for a college degree can vary significantly based on the field of study. While STEM degrees often offer the highest ROI, humanities degrees may not provide the same financial benefits. This information is crucial for prospective students when considering their future career paths and educational investments. What are your thoughts on this data? Do you think the potential ROI should be a key factor in choosing a degree? Feel free to share this article with friends and spark a discussion. Don't forget to sign up for the Daily Briefing, available every day at 6pm.