College still pays off, but the return on investment largely depends on your choice of major.
College graduates earn 37% more than those with only a high school diploma, according to a new report by Payscale. But as the cost of a degree rises, it is increasingly important to consider both your area of concentration and future earnings potential before taking out student loans to pay for college, most experts say.
Often, a good rule of thumb is not to borrow more than you expect to earn as a starting salary.
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“The fact remains that a college degree significantly impacts earning power,” said Amy Stewart, Payscale’s principal of research and insights.
“Choosing a school or major with strong income potential could cut your student loan repayment time in half, so it’s crucial to consider all your options — particularly for those who are on the fence about the value of a formal education.”
To that end, Payscale ranked which majors are the most financially rewarding, after accounting for salaries at the entry level and median income years down the road.
Highest-earning bachelor’s degrees
Students who pursue a major specifically in science, technology, engineering or math — collectively known as STEM disciplines — are projected to earn the most overall, Payscale’s college salary report found.
For the second year in a row, petroleum engineering holds the top spot for highest-paying bachelor’s degrees in 2024. Graduates in the field earn just shy of figures starting out and more than $200,000 with 10 or more years of experience.
After petroleum engineering, operations research and industrial engineering followed by electrical engineering and computer science are the next highest-paying majors, overall, both with higher starting salaries — over $100,000 — but lower mid-career pay.
Payscale’s college salary report is based on alumni salary data from 3.1 million respondents nationwide.
