You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
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*
|
| Accountant |
4 |
$79,520 |
$80,200 |
$850 |
12.83% |
| Advertising, marketing, promotions, public relations specialist |
4 |
$143,330 |
$80,200 |
$850 |
7.12% |
| Civil engineer |
4 |
$94,360 |
$80,200 |
$850 |
10.81% |
| Dentist |
8 |
$183,060 |
$231,708 |
$2,458 |
16.11% |
| Economist |
4 |
$116,630 |
$80,200 |
$850 |
8.75% |
| English language/literature teacher, postsecondary |
6 |
$80,180 |
$102,400 |
$1,086 |
16.25% |
| Lawyer |
7 |
$141,180 |
$164,992 |
$1,750 |
14.87% |
| Librarian |
6 |
$52,330 |
$102,400 |
$1,086 |
24.90% |
| Market research analyst |
4 |
$71,570 |
$80,200 |
$850 |
14.25% |
| Marriage and family therapist |
6 |
$54,590 |
$102,400 |
$1,086 |
23.87% |
| Microbiologist |
4 |
$82,760 |
$80,200 |
$850 |
12.32% |
| News analyst, reporter, correspondent |
4 |
$62,400 |
$80,200 |
$850 |
16.35% |
| Pharmacist |
6 |
$125,510 |
$88,500 |
$939 |
8.98% |
| Physician: family/general practictioner |
8 |
$213,270 |
$230,424 |
$2,444 |
13.75% |
| Political science teacher, postsecondary |
6 |
$102,290 |
$102,400 |
$1,086 |
12.74% |
| Political scientist |
6 |
$120,260 |
$102,400 |
$1,086 |
10.84% |
| Public relations specialist |
4 |
$70,190 |
$80,200 |
$850 |
14.53% |
| Teacher (full time) |
4 |
$28,394 |
$80,200 |
$850 |
35.92% |
| Veterinarian |
8 |
$104,820 |
$212,200 |
$2,251 |
25.77% |
| Zoologist, wildlife biologist |
6 |
$67,200 |
$102,400 |
$1,086 |
19.39% |
Sources: Occupational employment statistics from the Bureau of Labor Statistics; average undergraduate tuition costs from the National Center for Education Statistics; average graduate school costs from the Urban Institute; 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 Doctorly.
*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. The total cost of tuition and fees varies widely based on whether you live in the state of your university or you attend an out-of-state or private school.
Type of college
|
Average published yearly tuition and fees
|
| Public two-year (in-district) |
$3,440 |
| Public four-year (in-state) |
$9,410 |
| Public four-year (out-of-state) |
$23,890 |
| Private four-year |
$32,410 |
Source: College Board
If you’re having a difficult time deciding between an in-state or an out-of-state institution, Miana Plesca, associate professor of economics at the University of Guelph, says that a college degree is beneficial regardless. “No matter if you go to a top college or an in-state institution, the benefits are tremendous.”
Not only is earning a degree beneficial for your future career, but you’ll also learn valuable skills, regardless of the university you attend, says Plesca. “You’ll gain experience with things like teamwork, discipline and sticking to deadlines. These are skills that yield rewards.”
These skills can be intentionally cultivated through mandatory undergraduate courses that encourage team building, communication and collaboration. These courses can occur at both in-state and out-of-state schools and may help students prepare for the responsibility of postcollegiate careers.
Does it matter if I attend a top college?
While attending any college or university can help you establish valuable skills, there are certainly benefits to attending a top school, like increased networking opportunities, says Plesca.
Attending a top school can also provide the opportunity for a higher salary. According to PayScale’s 2019-20 College Salary Report, the 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. 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. And according to Plesca, simply attending a college can be beneficial for your future career.
Takeaway
Attending college, regardless if you choose a top school or not, 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 total cost of your student loans.
Featured image by Nirat.pix of Shutterstock.
Learn more:
Share