CHARLOTTE, N.C. — As millions of Americans struggle with student loan debt, many people are wondering if a four-year degree is worth the investment.
A new report indicates that a degree is worth it, but there are a few fields of study that are more likely to result in higher salaries on average. The report, which was published in the American Educational Research Journal, answers the question about a degree's value by taking a look at the best degrees and the return on investment graduates can expect based on their field of study.
Researchers say investing in a college degree still pays off well with better returns that the stock market. Their second takeaway? Certain degrees lead to a better return, with engineering and computer science graduates bringing home the most money on average. Researchers also found that women benefitted slightly more than men by earning a college degree.
"Our cost-benefit analysis finds that on average a college degree offers better returns than the stock market," study co-author Liang Zhang said. "However, there are significant differences across college majors and the return is higher for women than men."
The data compared earnings and tuition costs for about 6 million students and graduates over a 10-year period. Analysts then came up with a percentage for the return on investment, which came out at around 9%.
The reasoning behind the number explains more than the number itself. If you consider more than just how much you make after school, like the cost of tuition, books and lost wages from not entering the workforce sooner, they all point to one factor gaining importance: the field you're able to work in.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.
Researchers say while the degree still pays off, the bottom line is college keeps getting more expensive. That's why researchers argued for targeted financial support for students in "essential but less lucrative" majors, ensuring society benefits from a diverse range of skills and knowledge.
Contact Kia Murray at kmurray@wcnc.com and follow her on Facebook, X and Instagram.
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