Key Points
- This report estimates return on investment (ROI) — how much college increases lifetime earnings, minus the costs of college — for 53,000 different degree and certificate programs.
- Bachelor’s degree programs have a median ROI of $160,000, but the payoff varies by field of study. Engineering, computer science, nursing, and economics degrees have the highest ROI.
- Associate degree and certificate programs have variable ROI, depending on the field of study. Two-year degrees in liberal arts have no ROI, while certificates in the technical trades have a higher payoff than the typical bachelor’s degree.
- Nearly half of master’s degree programs leave students financially worse off. However, professional degrees in law, medicine, and dentistry are extremely lucrative.
- Around a third of federal Pell Grant and student loan funding pays for programs that do not provide students with a return on investment.
Executive Summary
In recent years, young Americans have expressed more skepticism about the financial value of higher education. While prospective students often ask themselves if college is worth it, this report shows the more important question is when college is worth it.
This report presents estimates of return on investment (ROI) for 53,000 degree and certificate programs ranging from trade schools to medical schools and everything in between. I define ROI as the increase in lifetime earnings that a student can expect when they enroll in a certain degree program, minus the costs of tuition and fees, books and supplies, and lost earnings while enrolled. My preferred measure of ROI accounts for the risk that some students will not finish their programs.