College degrees can still bring great returns on investment
As the cost of education and student loan debt have risen, so has students’ interest in college degrees that offer a high return on investment. Students increasingly rely on loans to finance part or most of their education in light of skyrocketing college costs. Pew Research noted that the average student loan balance owed has increased steadily since 1989, reaching $26,682 just a couple of years ago. The problem is, of course, that those loans have to be paid back. That’s why students are not just looking at university degrees in terms of what they want to do for the rest of their lives, but also in terms of what kind of return they’ll get on that hefty investment. So, what are these college degrees that offer a high ROI? You just have to look at the supply-demand equation — where there’s a lot of demand for workers, but typically not a huge supply of skilled labor. Let’s take a look. Next Page
Actuarial mathematicians have mid-career median earnings of $120,000.
College Degrees That Are Great Investments – Math
Annual ROI: 10% Math majors’ average starting salaries range from $34,241 to $51,284, according to the National Association of Colleges and Employers’ 2014 salary survey. Graduates with specializations that emphasize applying math to business and health issues enjoy the best job prospects. Actuarial mathematicians have an average starting salary of $58,700 and mid-career median earnings of $120,000. Demand for actuaries also is rising at a healthy 26%, according to BLS. PayScale estimates a 10% annual ROI over 20 years in the math and physical science field. Next Page
Business degrees offer great ROI
College Degrees That Are Great Investments – Business
Annual ROI: 11.6% Business administration and marketing are high-ROI degrees coveted by employers, according to NACE. Those two fields saw their average starting salaries rise by less than 1% to $55,600 and 6.1% to $54,100, respectively. According to PayScale’s 2013-14 survey, business majors can have up to a 11.6% ROI over 20 years, which amounts to about $1 million in net earnings. Business mid-career median salaries vary from around $64,000 to $87,000. Next Page
BLS forecasts more than 20% job growth in healthcare jobs over the next eight years
College Degrees That Are Great Investments – Nursing and Health
Annual ROI: 11.8% Growing demand for healthcare professionals to take care of the aging population, as well as continuous need to develop cures for major diseases such as cancer, drive up demand in this field. The BLS forecasts more than 20% job growth in this area over the next eight years. NACE’s 2014 salary survey lists an average starting salary of $51,541. Mid-career median earnings come in between $56,500 and $80,300, according to PayScale’s 2013 survey. Meanwhile, the annual return on a health science degree over 20 years can be as high as 11.8%. Net earnings on a 20-year period range from $685,200 to $706,700, according to PayScale’s 2014 College ROI report. Next Page
Starting salaries can be as high as $95,300 for petroleum engineers
College Degrees That Are Great Investments – Engineering
Annual ROI: 13.7% Engineering degrees are high-ROI college degrees generating up to 13.7% annually, or about $1 million in net earnings over 20 years, according to PayScale’s 2014 College ROI report. The average nationwide starting salary for engineering majors was $62,719 for 2014, according to National Association of Colleges and Employers (NACE) surveys. Within engineering, the specialties that are in high demand are petroleum, nuclear, chemical, aerospace and electrical. Starting salaries can be as high as $95,300 for petroleum engineers according to NACE. Beyond college graduation, engineers have a stable job outlook and solid mid-career earnings. Most mid-career engineers earn a median salary of more than $100,000. Next Page
Computer science has the second-largest average starting salary at $61,741 for 2014
College Degrees That Are Great Investments – Computer Science
Annual ROI: 14.3% According to NACE, computer science has the second-largest average starting salary at $61,741 for 2014, up from $59,977 from 2013. These numbers consider pure computer science majors together with information systems and sciences majors. The latter consider some business aspects within their study programs. Mid-career, computer scientists have a stable outlook with median salaries of about $100,000. Computer science can generate up to a 14.3% ROI over 20 years, according to PayScale’s 2013-14 survey, or 20-year ROI of $1,557,000 net of college costs over 20 years, depending on the university. The field also enjoys a healthy growth rate. Information security analysts are coveted, with an expected job growth rate of 37% over the next eight years, according to the Bureau of Labor Statistics (BLS).
