College is still worth it, research finds — although these majors have the lowest rate of return (2024)

FAQs

Why is college still worth it? ›

There are many positives to attending college: higher wages, stronger recession resilience, lower unemployment rates, the list goes on. Plus, many employers require or prefer a college degree for many professional roles.

On average, college graduates earn $1.2 million more than high school graduates over a lifetime and typically have more career flexibility.

College majors with the highest and lowest return

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.

For many people, going to college is worth the cost. College graduates typically earn more money than people who don't have a degree. Many career paths also require a degree.

They used to be a huge differentiator, but since more people are going to college over the last 30 years, the degrees alone won't set you apart like they used to do. The school you earned your degree from, the internship experience you gained, and the tangible skills you bring are all relevant in the job market.

Key insights: The value of a college degree

Bachelor's degree holders earn 50% more than high school graduates on a weekly basis, according to the U.S. Bureau of Labor Statistics' latest data. By 2031, most U.S. jobs will require some form of postsecondary education or training.

Thus, while the benefits of college still outweigh the costs on average, not all college degrees are an equally good investment. The economic benefits of a college degree can be thought of as the extra wages one can earn with a college degree relative to what one would earn without one.

Specifically, Computer Science and Engineering majors have the highest IRRs, exceeding 13%, whereas Humanities & Arts and Education majors have the lowest IRRs, around 5% for male and 8–9% for female college graduates.

STEM (science, technology, engineering, and math) degrees dominate the list of collegiate programs that lead to top-paying careers. While some bachelor's degrees in the humanities and social sciences don't typically offer high salaries, they can provide a foundation for a graduate degree and a more lucrative career.

Business is the most common major, with nearly one-fifth of all bachelor's degree recipients choosing this path. Business majors include several areas of study, such as business administration, management, and marketing.

What is the most useful degree? ›

Fields like Computer Science, Healthcare, Engineering, and Business Management often top the list due to their high demand in the job market, strong salary potential, and broad applicability across industries.

Study after study demonstrated that college graduates earn substantially more than workers without a college degree. According to one widely cited report, college graduates on average earn 84 percent more over their lifetimes than those with just a high school degree.

College is a good investment

By 2021, the difference had grown to 62 percent (and closer to 90% for workers with graduate degrees). Currently, California workers with a bachelor's degree earn a median annual wage of $81,000.

Americans still believe in the power of a college degree, but the sticker shock of tuition and fees causes many to doubt the economic value, reducing access. While most people believe in the value of postsecondary education, high costs limit access and create doubt on the return on investment.

Simply put, college graduates earn about twice as much as their non-college-educated counterparts. College graduates are also less likely to be unemployed and have better health insurance and retirement benefits.

If you are wondering if you need a college degree to be successful in life, the answer will largely depend on your professional goals. Some career paths require (or heavily prefer) candidates with a college degree, while others require much less time in school.

Roughly half (49%) say it's less important to have a four-year college degree today in order to get a well-paying job than it was 20 years ago; 32% say it's more important, and 17% say it's about as important as it was 20 years ago.