(The Hill) — As thousands of new graduates toss their caps this month, research shows more than 40 percent of master’s degrees aren’t financially worth obtaining, the Foundation for Research on Equal Opportunity found.
Looking at career earnings at graduation and a decade later, while accounting for factors such as dropout rate, the study found that bachelor’s degrees are much more likely to be financially worth it for students than graduate degrees.
More than three-quarters, 77 percent, of four-year bachelor degrees have a positive return on investment, the study found, compared to just 57 percent of master’s degrees.
The subject of study had a significant influence on financial return, with the best degrees to pursue for undergraduate studies being engineering, computer science, and nursing degrees, while fine arts, education, and biology programs had the lowest median return.
The average return on investment for a bachelor’s degree is about $160,000, the study found, but degrees in especially lucrative fields could top $500,000 or more.
For graduate study, law, medicine and dentistry were the most lucrative, according to the analysis.
“While ROI should not be the only consideration for students approaching the college decision, the ROI estimates presented in this report can help students and their families make better choices regarding higher education,” study author Preston Cooper wrote.
The study comes as scrutiny increases on the cost of higher education. Undergraduate tuition could reach as high as $95,000 at some universities, while millions of Americans are hampered with hundreds of thousands of dollars in student debt.
Debt cancellation has been a focus of the Biden administration, treating a symptom of the rising costs while also buoying support before the November election.
FAQs
Pursuing a master's degree can freeze immediate career growth and income. That's the opportunity cost. It's the trade-off for the potential professional development that comes with an advanced degree. You're not only spending money on the degree but also missing out on income you could be earning.
Is it odd to have two masters degrees? ›
It's entirely possible to earn two master's degrees and there are many reasons to do so. Two master's degrees can help you to pursue more than one academic field, qualify for a position with more responsibility and opportunities and help you to become a top candidate for higher paying jobs.
Is a Masters worth it in 2024? ›
Earning your master's degree has many advantages. It can lead to higher salaries, advanced career opportunities, higher-level subject knowledge, and a feeling of accomplishment. But embarking on a master's degree takes time and money.
How important is a master's degree? ›
It serves as a career booster, helping you move to upper-level management, positions with more security and potentially a role with higher pay. It could possibly give you the edge over your fellow colleagues who have similar work experience but do not have a master's degree.
Is having a Masters degree impressive? ›
Those with a master's degree often possess specialized knowledge that those without a degree may not know. As a result, a master's degree program can help make you an industry expert, resulting in increased credibility and respect in your area.
Do two masters equal a doctorate? ›
If you have one doctorate, you've achieved the doctoral level. A second (or higher) master's keeps you at the master's level. It can give you greater breadth, but that's not the same as greater depth. It's also not the same level of credential, especially for administrative positions, which often require a doctorate.
Is having two master's degrees impressive? ›
Holding a master's degree can be a lucrative way to stand out from other candidates, especially when you feature that kind of education on your resume. Having two master's degrees shows that you've taken extra steps to gain advanced knowledge and can add to the overall story you tell about your career on your resume.
What do you call a person with multiple degrees? ›
A perpetual student or career student is a college or university attendee who re-enrolls for several years more than is necessary to obtain a given degree, or who pursues multiple terminal degrees. Perpetual students might publish or work in several fields. They are often considered polymaths.
What is the most sought after master's degree? ›
Master of business administration (MBA), master of science in nursing (MSN), and master's in information technology degrees are among the most popular and highest-paying master's degrees.
How old is the average person with a Masters? ›
The average age of people who get their master's degrees is the late 20s to early 30s; however, most master's programs are filled with a wide range of ages.
Going back to school for a master's degree isn't always for everyone, and it's not for every 40-year-old. However, in general, it's worth it to increase your formal education, and 40 is not too late for grad school if it's something you want to do.
What degree do most CEO have? ›
The Bachelor of Arts and Bachelor of Business Administration was the most popular undergraduate degrees among Fortune 100 CEOs, with 53% of CEOs identified as having obtained one of these two degrees.
How rare is a master's degree? ›
About 13.1 Percent Have a Master's, Professional Degree or Doctorate. The educational level of American adults is on the rise as more college graduates go on to earn master's, professional and doctoral degrees.
Are masters degrees worth it anymore? ›
Master's degree holders typically find higher-paying jobs faster than bachelor's or associate's graduates. According to a College Board and U.S Census Bureau survey, 24% of advanced degree holders make $150,000 or more in 2022. Here are some high-paying jobs that require master's degrees in 2023.
Why not do a Masters degree? ›
Obtaining a Masters degree can be expensive and time-consuming. Therefore you need to weigh up your reasons for studying carefully. As a rule, Masters study is cheaper than doing an undergraduate degree, although fees vary widely. In the majority of cases, international students pay more.
Is it worthwhile doing a Masters? ›
While the cost of a master's degree can be high, the return on investment is a compelling factor for many. Numerous studies consistently reveal that people with a master's degree tend to enjoy higher earning potential over the course of their careers compared with those who only have a bachelor's degree.
Is it worth it to get a master's in it? ›
You can enjoy a higher salary.
Similar to other careers in the tech industry, a master's in IT salary will trend higher than the general average. Even entry-level positions pay well, as Payscale lists an average salary for MSIT related careers at about $87,869.
Is a Masters degree a big deal? ›
Completing a master's degree program could increase your earning potential, but this will really depend on the exact degree you obtain and the industry in which you work. According to research by Indeed, the earnings increase between a person with a bachelor's degree and a master's degree is about 20 percent.
