Top College Degrees with the Highest Financial Returns Revealed

Engineering, computer science and nursing degrees are among the college degrees with the best return on investment, according to a new study.

Why It Matters

Research has found that Americans are increasingly questioning whether college is worth the time and price, deterred by the rising cost of higher education and the prospect of student debt.

But research has found that degrees do pay off in the long run, and that having one can significantly increase earning potential . Americans with a bachelor's degree earn a median of $2.8 million during their careers—75 percent more than if they only had a high school diploma, according to a study from Georgetown University's Center on Education and the Workforce.

However, that research found that earnings vary by a range of factors, including education level, field of study and occupation.

What To Know

The study, conducted by Student Choice, a credit union service organization, analyzed data from the U.S. Bureau of Labor Statistics to determine the median earnings for the top 20 most popular college majors in the United States.

The study calculated the return on investment (ROI) for a college degree by comparing the median wage graduates earn after five years in the workforce to the average total cost of attending college for four years, cited in the study as $38,270 per year for a total investment of $153,090 after four years.

Degrees with the highest five-year ROI

Engineering: 326.6 percent

Total median wage earned after five years: $500,000

Computer Science and Computer Information Technology: 310.3 percent

Total median wage earned after five years: $475,000

Nursing: 280.9 percent

Total median wage earned after five years: $430,000

Accounting: 261.3 percent

Total median wage earned after five years: $400,000

Biochemistry: 248.2 percent

Total median wage earned after five years: $380,000

Degrees with the lowest five-year ROI

Fine Arts: 163.3 percent

Total median wage earned after five years: $250,000

Social Welfare: 169.8 percent

Total median wage earned after five years: $260,000

Education: 169.8 percent

Total median wage earned after five years: $260,000

Exercise Science: 176.4 percent

Total median wage earned after five years: $270,000

Liberal Arts: 179.6 percent

Total median wage earned after five years: $275,000

What People Are Saying

Mike Weber, the chief marketing officer of Student Choice, in a statement to The News Pulse : There is "ample data that shows higher education pays off many times over" for most college graduates.

"However, with tuition and living expenses on the rise, and many forced to take on student loans to cover costs, it's imperative that students and families consider potential economic outcomes when evaluating such a large investment. We created this ROI study in hopes of bringing additional clarity to the decision-making process of choosing a college major."

"Upon first glance, this study doesn't find anything outwardly surprising. Many STEM careers historically have proven to create a strong ROI. Healthcare careers are always in demand and tend to pay well. And with the surging role of AI in business and culture, computer science and engineering are likely to play a vital role in its evolution.

"Furthermore, it's encouraging to see a less tech-focused and more people-centered major, such as nursing, make the top three. This field provides graduates with all sorts of opportunities within the healthcare field, and is a principled choice with a great ROI."

Weber added: "It's important to remember that all the majors we looked at resulted in a positive ROI. Students who are particularly passionate or gifted in liberal arts can rest assured that pursuing higher education will pay off, although it may take quite a bit longer than the degrees mentioned earlier.

"This is a great reminder of two things – the value of education and the importance of smart borrowing. Credit unions are founded on a philosophy of promoting thrift, and our hope is that we can help families ensure that financial decisions are aligned with likely educational outcomes."

Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told The News Pulse : "We've seen recent reports on higher unemployment rates among computer science majors , which may concern those either currently studying in the profession or planning to do so in the coming years.

"However, when you look at the high return on investment that professions in computer science—along with engineering, nursing, and other fields, provide—it's easy to see why so many students continue to gravitate to it. Even though jobs in some of these areas may be scarcer, the opportunity to see a significant return on the high costs these degrees now carry makes them, for most, worth pursuing.

"Other career paths with a lower ROI could make some students reflect on whether they really want to take on those career paths or not. Historically, those fields tend to rely on passion more than profit. However, with the sky-high costs most college programs now entail, it could dissuade some from pursuing those areas, even if that's where their hearts lie."

What Happens Next

Those wanting to reap the most financial reward out of their degrees could choose to pursue the degrees that were found to yield the highest ROI. But those wanting to pursue degrees with lower earning potential, such as fine arts and education, can be assured that those will also lead to a positive ROI.

But a college degree is not necessary to earn a good salary in some fields. Some companies are dropping requirements for a degree, prioritizing skills and experience over education when hiring.

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