Americans currently owe nearly $1.8 trillion in student loan debt, but despite rising costs, going to college is a decision that can give you one of the best returns on your investment.
The size of that return, however, can depend on what you major in. Degrees in engineering, math and computers, and business and economics provide the largest annual return, according to data compiled by the Federal Reserve Bank of New York.
On average, a college graduate earns $32,000 more in a year than a worker with only a high school diploma, according to a new report from Federal Reserve economists.
The payoff on a college degree stands near its all-time high, the economists report in an April 16 post from the Federal Reserve Bank of New York. If you think of college as an investment, the return on that investment has held steady over the last three decades at 12% to 13% a year.
“I’d love to get that return on my savings account,” said Ted Mitchell, president of the American Council on Education, a nonprofit that represents college leaders.
This year’s graduates are eager to earn, with 62% reporting the most important aspect of a job is a good salary, according to Monster’s 2025 State of the Graduate Report. Of 2025 graduates surveyed, only 12% said they’d be willing to accept an unpaid internship and 49% said they would never accept a job that doesn’t come with a competitive salary and benefits, up 5% from last year.
The majority of new graduates surveyed plan to pursue careers in some traditionally lucrative fields including business, healthcare, computer technology, and finance.
However, their ability to land jobs in those industries and earn a high paycheck can depend on what they studied and how long they stayed in school. Career experts agree dream jobs and large salaries don’t always come right away.
“It’s a hard world out there for a lot of people who are not just highly educated, but have built these careers and have a trusted resume of previous experience. It’s hard for them to get a job,” Emily Levine, executive vice president at recruitment firm Career Group Companies, told USA TODAY. “If you want to get a job somewhat quickly and start contributing and earning money, it most likely won’t be your dream job. And that’s okay.”
If the goal of college is to earn more money, then the New York Fed report suggests academia is doing a good job. The analysis found that a typical college graduate earns about $80,000 a year, compared with $47,000 for a worker with a high school diploma. The college wage premium tends to grow throughout a career.