Undergraduate tuition, possible graduate degrees and room and board all add up — especially for students taking out loans. This can leave a potential student wondering, “Is this a wise investment?”

Read on to find out if college is a good investment for you based on typical average education costs versus estimated annual salaries.

Estimated loan payments based on degree and occupation*
Occupation Minimum required years in college, graduate school and professional programs Estimated annual salary Estimated education costs Monthly loan payments under 10-year repayment plan Percentage of monthly income put toward loans
Accountant 4 $81,660 $42,960 $455 6.69%
Advertising, marketing, promotions, public relations specialist 4 $148,740 $42,960 $455 3.67%
Civil engineer 4 $95,440 $42,960 $455 5.72%
Dentist 8 $186,300 $194,468 $2,062 13.28%
Economist 4 $120,880 $42,960 $455 4.52%
English language/literature teacher, postsecondary 6 $81,340 $67,780 $718 10.59%
Lawyer 7 $148,910 $130,182 $1,380 11.12%
Librarian 6 $54,400 $67,780 $718 15.84%
Market research analyst 4 $73,970 $42,960 $455 7.38%
Marriage and family therapist 6 $56,890 $67,780 $718 15.15%
Microbiologist 4 $91,840 $42,960 $455 5.95%
News analyst, reporter, correspondent 4 $66,000 $42,960 $455 8.27%
Pharmacist 6 $125,460 $83,960 $890 8.51%
Physician: family/general practitioner 8 $214,310 $204,448 $2,168 12.14%
Political science teacher, postsecondary 6 $100,970 $67,780 $718 8.53%
Political scientist 6 $124,100 $67,780 $718 6.94%
Public relations specialist 4 $71,940 $42,960 $455 7.59%
Teacher (elementary and middle school) 4 $65,300 $42,960 $455 8.36%
Veterinarian 8 $108,350 $198,255 $2,102 23.28%
Zoologist, wildlife biologist 6 $70,510 $67,780 $718 12.22%

Sources: Occupational employment statistics from the Bureau of Labor Statistics; average undergraduate tuition costs from College Board; average graduate school tuition costs from the National Center for Education Statistics; average medical school costs from Shemmassian Academic Consulting; average pharmacy school costs from Vocational Training; average dentistry school costs and average law school costs from College Ave Student Loans; average veterinary school costs from the American Association of Veterinary Medical Colleges.
*Education costs are based on the tuition and fees for in-state, public schools with no scholarships. The chart above assumes 5 percent student loan interest on a standard 10-year repayment plan, with loan amounts for the full cost of education. These numbers will vary based on the individual and are to be used solely as an informational tool. To see how much you could pay per month based on your loan amount, interest rate and repayment terms, check out Bankrate’s student loan calculator.

In-state vs. out-of-state

The main consideration to make when deciding between an in-state and an out-of-state school is the cost. In-state schools tend to be much less expensive than out-of-state and private institutions.

Type of college
 Average published yearly tuition and fees
Public two-year (in-district) $3,800
Public four-year (in-state) $10,740
Public four-year (out-of-state) $27,560
Private four-year $38,070

Source: College Board

If you’re having a difficult time deciding between an in-state and an out-of-state institution, remember that more expensive does not necessarily mean better. Attending an in-state institution is the best financial decision for many students, and earning a degree is beneficial for your future career regardless of the university you attend.

If there’s a specific program you want to attend, or if you’d prefer to live away from home, an out-of-state college could be a good choice. Otherwise, investigate the colleges near you to see if they’d be a good fit.

Does it matter if I attend a top college?

When it comes to future employment opportunities, there are certainly benefits to attending a top school. While attending any college or university can help you establish valuable skills, top schools can provide benefits like increased networking opportunities and have overall higher graduation rates.

Attending a top school may also lead to a higher salary. According to PayScale’s 2021-22 College Salary Report, students who graduated with a bachelor’s degree from top private schools or Ivy League schools earned higher salaries on average than those who attended state schools.

However, the investment that you get out of your collegiate experience doesn’t depend only on the college you attend, and having a degree from any school is better for your salary potential than having no degree. The major that you pursue and your general academic success while in college, whether at a top school or not, can have a major impact on the ROI of your college degree.

Takeaway

Attending college, no matter the school, can be a great investment in your future. On top of helping you learn valuable skills, your degree can open doors to future career opportunities.

When you’re considering which college to attend and what to major in, calculate your return on investment to determine if it’s a good financial fit for you. You can do this by searching the average salary of the career you’re going to school for and comparing that to the potential cost of your student loans.

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