Which College Degrees Have the Best ROI?

Going beyond a plan for smart student loan decisions, business-minded prospective students want to choose a field of study that will help them build a strong career with a high return on investment (ROI).

Financial advisors and CPAs often find themselves advising clients on their college and career futures. Going beyond a plan for smart student loan decisions, business-minded prospective students want to choose a field of study that will help them build a strong career with a high return on investment (ROI). A new study from StudentChoice.org analyzed ROI after five years working in the field for a huge variety of degrees. This is crucial information for anyone who considers ROI to be the biggest determining factor in choosing a major. 

The reality is that the average cost of a four-year education is $38,270 annually. This is a big price tag, making college decisions feel like high stakes. Data shows that 43 million Americans have federal student loan debt, with many struggling to make even minimum repayments. CPAs can help guide clients to the most financially successful future by advising not only on financial strategy but using this data to help clients choose what to study. The data here shows us earning potential across a wide variety of fields and shows a five-year outlook that can help clients plan for the future. 

The Top-Performing Degrees

The team’s data shows five strong degrees with ROIs high above the competition. These degrees include: 

  • Engineering with a 326.6% ROI: People working in engineering make an average salary of $100,000 a year. That’s $500,000 after five years, which is plenty to pay off the initial investment of the degree. Any clients interested in STEM should look to engineering for huge financial opportunities in a variety of exciting careers and specialized areas of study. 

  • Computer Science and Information Technology with a 310.3% ROI: Students who graduate with a Computer Science or IT degree earn an average of $95,000 annually. According to experts, 60% of employers in the field expect the number of jobs to increase as technology booms and more and more specialized skills are required to operate that technology. 

  • Nursing with a 280.9% ROI: Nursing is a career in high demand with wages on average of $86,000. With a large aging population in the United States, the demand for nurses will only increase. For anyone who wants to do meaningful work, have an exciting and physical job, and study medicine, this degree is the strongest ROI. 

  • Accounting with a 261.3% ROI: A career that can lead to a partnership or ownership of your own practice, an accounting degree offers many paths to lucrative salaries, whether working for a firm or within industry.

  • Biochemistry with a 248.2% ROI: Out of scientific fields and careers that will require a lot of time doing lab research, biochemistry yields the highest ROI. This field typically supports the pharmaceutical and biotechnology industry, which both produce lucrative and even life-changing technology, so it’s no wonder this field is well paid. 

In addition to specific degree ROIs, it’s essential to understand which careers within those majors have the highest ROIs. This can help prospective students get an idea of what career and financial paths their degree may lead them down. 

The position with the highest ROI is Computer and Information Systems Manager with an incredible 553.7% ROI. These positions pay an average annual salary of $169,510. We see many clear examples of strong ROI in technology leadership roles. In general, management positions tend to pay well, with managers in advertising and marketing seeing a 511.4% ROI. In the world of engineering, the most highly paid engineers are aerospace engineers with a 427% ROI. A combination of specialized technical skills and leadership abilities will have the highest monetary rewards. 

Future-Proofing and Practical Career Advice 

With all this in mind, how will AI and emerging technology affect the future job market? While we can’t predict which careers will be most impacted, we do know that AI cannot replicate human creativity, innovation, critical thinking, and emotional intelligence. When choosing courses, students should consider what subjects and class types will help them hone these skills in particular. They can all pursue careers that rely on these abilities and require a uniquely human touch. 

Using This Information for Advising 

ROI data can help you guide your clients to more comprehensive education decisions. Return projections can help your clients decide the best option for funding their education. Clients who want to pursue lower ROI careers can use this data to consider alternative degree funding options and choose courses that will grant them extra certifications or aim for graduate programs that lead to higher ROI careers. When advising clients, CPAs should consider individual family circumstances, regional factors like job availability, and other client-specific financial goals. Regardless of a client’s situation, ROI data can help them make empowered and informed decisions about their higher education. 

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Michael Weber is the Chief Marketing Officer at CU Student Choice. With 20 years of experience in marketing, public relations, and advertising, Michael now shares his experience and builds awareness of Student Choice among credit unions and business partners. He graduated from the University of Iowa with a bachelor’s degree in journalism and political science, and resides in Dubuque, Iowa.

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