The Value of a College Degree: Why It’s Worth the Investment
For decades, research has shown that earning a degree is almost always worthwhile. Recent data from the Federal Reserve Bank of New York reveals that recent college graduates working full-time earn $24,000 more a year than those with just a high school diploma. Additionally, finishing college puts workers on track to earn a median of $2.8 million over their lifetime, compared to $1.6 million with just a high school degree, according to a report from the Georgetown University Center on Education and the Workforce.
In general, bachelor’s degree holders earn 75% more over their career, with the potential for even larger payoffs as educational attainment levels increase. However, it’s important to note that the choice of major also plays a significant role in determining the return on investment.
A recent study published in the American Educational Research Journal found that engineering and computer science majors provide the highest returns in lifetime earnings, followed by business, health, and math and science majors. On the other hand, education, humanities, and arts majors had the lowest returns among the fields of study considered.
Overall, the benefits of higher education have remained strong, even as enrollment has declined and the labor market outcomes for those without a college degree have improved. A college degree continues to offer better returns than the stock market on average.
Students who pursue majors in STEM disciplines are projected to earn the most overall, according to the Georgetown Center. Additionally, health and business majors are among the highest-paying, leading to greater earning potential over the course of a career compared to liberal arts and humanities majors.
Despite the financial benefits of a college education, more students are questioning the value of college due to the rising cost and student loan burden. While most Americans still believe that a college education is beneficial for career advancement, only half think that the economic benefits outweigh the costs, especially among young adults.
As students consider their options for higher education and career paths, it’s important for them to seek professional guidance on the economic outcomes of different majors to make informed decisions about their future. College is still a valuable investment for many, but choosing the right major can make a significant difference in long-term earning potential.
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