Rising tuition costs, increasing student loan interest rates and a higher cost of living in the U.S. has left potential college students questioning the value of a college degree. Many students regret how much student loan debt they took out for their education; in a Bankrate survey about student loan debt, 69 percent of respondents said that they would have done something differently in regards to their student loans.

But — when carefully planned — the investment in a college education can be very well worth it, as close to six in 10 degree-holders say that having a degree has benefitted both their salary and career growth.

Bankrate insight

Thirty-six percent of Americans surveyed took out student loans. Of those, 23 percent of Gen Z respondents and 22 percent of millennials would have attended a cheaper school in hindsight.

Tuition ROI statistics

  • As of the third quarter of 2022, Americans owe roughly $1.76 trillion in student loan debt.
  • Bachelor’s degree recipients who borrowed for their education have an average of $29,100 in student loan debt.
  • In 2020-21, 54% of bachelor’s degree recipients graduated with student loan debt.
  • The average published cost of attendance in 2022-23 was $27,940 for in-state undergraduates at four-year public universities and $57,570 for undergraduates at four-year private universities.
  • Approximately 3 in 5 employers require a college degree for all of their entry-level positions.
  • The average projected starting salary for a class of 2023 bachelor’s degree graduate is $55,260.
  • Bachelor’s degree holders earn, on average, 84% more than high school graduates.
  • The unemployment rate for high school graduates is 6.2% — almost twice as high as that of bachelor’s degree holders, which sits at 3.5%.
  • Roughly 60% of college graduates who took student loans have delayed important financial milestones due to their debt.
  • Despite the financial woes, 6 in 10 degree-holders say their college degree has been beneficial to their salary and career prospects.

Layoffs and degrees

Over the last few months, big tech companies like Google, Microsoft, Meta and Amazon have laid off thousands of employees as fears of a looming recession intensify. With such economic uncertainty, it’s only natural to think twice about spending thousands of dollars in a degree.

However, data from the Bureau of Labor Statistics shows that unemployment rates are substantially higher among those without a degree. For instance, the unemployment rate among high school graduates is currently 6.2%, compared with 3.5%, which is the unemployment rate among bachelor’s degree holders. LinkedIn also found that only one out of five job posts in the platform don’t require applicants to have a college degree, further backing the value of a postsecondary education.

Student loan debt vs. income

Federal Reserve data shows that total student loan debt in America has increased by 67 percent in the last decade, although College Board found that students are generally borrowing less in federal loans than they used to. It is estimated that between 2011-12 and 2021-22 federal student loan borrowing among undergraduate and graduate students decreased by 49 percent and 9 percent, respectively, after adjusting for inflation.

Student loans can be expensive, especially now that interest rates are rising, which is why it’s critical to find ways of reducing college costs before taking on debt. Attending an in-state school versus an out-of-state school, for instance, can save students an average of $17,300 per year, according to College Board. In Bankrate’s student debt survey, 17 percent of borrowers said that, if given the opportunity to make different decisions in hindsight, they would have attended a cheaper school; 23 percent would have applied for more scholarships and 20 percent would have worked more while in school. Those percentages are much higher for Gen Z students.

Bankrate insight

Eighty-five percent of Gen Z students who have or had student debt say they’d do something different to pay for college with the benefit of hindsight.

Even with rising college costs, the returns could very well be worth it. In the same Bankrate survey, 59 percent of graduates who have or had student loan debt reported that their higher education unlocked career and earning potential that they wouldn’t have otherwise had. Bureau of Labor Statistics data backs this up, with bachelor’s degree recipients earning $525 more in median weekly earnings than workers with just a high school diploma:

Degree Median weekly earnings
High school diploma $809
Associate degree $963
Bachelor’s degree $1,334
Master’s degree $1,574

College major ROI

Each college major has a different lifetime value — also known as the return on investment (ROI) — based on the median salary that degree-earners make compared to the cost of their program and the average amount of debt necessary to earn the degree.

While ROI shouldn’t be the only factor in choosing a major, it should be considered when calculating the long-term value of an education. In Bankrate’s survey, 19 percent of respondents said that when looking back, they would have chosen a different degree due to their student loan debt. That number rises to 23 percent for Gen Z respondents.

Here are the top five most- and least-valuable college majors according to data by Big Economics, as well as their average salary as reported by PayScale:

Most valuable college majors

Major Average base salary
Petroleum engineering $103,456
Nuclear engineering $91,252
Naval architecture and marine engineering $82,103
Chemical engineering $78,963
Computer engineering $75,097

Least valuable college majors

Major Average base salary
Library science $52,441
Social work $51,530
Teacher education: multiple levels $51,443
Special needs education $48,269
Educational psychology $45,000

Is college worth it?

Despite the rising costs, there are multiple benefits of attending college, among them being potential earning increases, broader career opportunities and increased job security.

Some of the biggest benefits of a college education include:

  • Better pay: According to the U.S. Bureau of Labor Statistics, full-time employees who have earned a bachelor’s degree make an average of $525 more per week than those with a high school diploma — or $27,300 per year.
  • Career opportunities: Attending college gives you the skills necessary to succeed in a wide range of careers and fields of study. Employers also highly value a college degree; in fact, 87 percent of employers said in an Association of American Colleges and Universities (AACU) survey that earning a degree is either definitely or probably worth it.
  • Skills: Students who attend college have a unique opportunity to gain skills unrelated to their major or field of study. Most schools offer clubs and organizations that focus on valuable career-building skills. For instance, students who want to develop public speaking skills may join an organization like Toastmasters. College also gives students soft skills like time management and organization.
  • Experience: The act of simply completing a degree can prepare students for what a professional career could look like. Plus, many degree programs require students to get a summer internship in their field of study to graduate. This not only provides invaluable on-the-job experience, but also opens the door to future employment opportunities.

Alternatives to college

A college education isn’t the right choice for everyone, and it isn’t necessary for every career field. Thankfully, there are plenty of alternatives if a traditional degree isn’t in the cards.

Trade school

Trade school, unlike a traditional college education, focuses on training students in a specific skill. Trade work spans a wide range of careers, including electrician work, plumbing work, nursing and culinary arts.

Trade school programs cost between $5,000 and $15,000 total and they last several months to two years, allowing you to enter the workforce faster. Not only that, but these careers come with good earning prospects. For instance, the annual base salary for a hairstylist in the U.S. ranges from $39,044 to $73,000.

Going to trade school can be a good choice for those who know exactly what field they want to enter and want to save time and money getting there.


An apprenticeship allows students to complete on-the-job training while undergoing classroom instruction. These programs typically last between one and six years. Apprenticeships are paid and must be registered with the U.S. Department of Labor or a state apprenticeship agency.

There are thousands of careers that offer apprenticeship programs, and some programs even allow students to earn college credits if they wish to later attend a degree program.

One of the biggest benefits is that apprenticeships are paid and often lead to full-time employment. According to Apprenticeship.gov, 93 percent of apprentices who complete a registered program retain employment, with an average annual salary of $77,000. What’s more: these programs often come at no cost for participants, so the ROI is very well worth it.

Coding boot camp

A coding boot camp is a short-term program that gives students the skills necessary to enter a career in computer science. Although some of them are free, you can expect to pay anywhere from a couple thousand dollars to up to $21,000 for more advanced programs.

Coding boot camps tend to be short in duration, too. Some of them last a couple of weeks, while most can last several months. However, financing them can be tricky, since you won’t qualify for traditional federal student aid and will have to cover the costs out-of-pocket or by taking out private student loans.

That said, coding boot camps often help with job placement and come with earnings of over $69,000 a year, on average.

The bottom line

College is worth it for many people, considering the experience, job security and salary potential that comes along with a degree. However, students should still be mindful of their costs; with student loan debt often lasting for at least a decade, it’s prudent to choose an affordable school and reduce expenses as much as possible. Before taking on debt, run the numbers through a student loan calculator to get a better picture of what your postcollege repayment will look like and how that compares to your potential starting salary.