Is a Bachelor’s Degree Worth It? New Study Says Yes… Once You Turn 34

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New Study Says Yes...

Once You Turn 34 By: Adam Hardy Adam Hardy Lead data journalist | Joined October 2021 Adam Hardy has eight years of experience in personal finance journalism. At Money, he’s written extensively about student loans, including guides, explainers and breaking news. MuckRack named Adam one of the top 10 journalists covering student loans in the nation. Has also written: Over $1 Billion in Unclaimed Tax Refunds From 2022 Expires Today Here's How to Track Your Tax Refund This Year Reignited Inflation Could Push Social Security COLA Past 3% Next Year Gas Prices Rose 40% Since the Iran War Began. They Won't Fall Nearly as Fast If the Iran War Ended Today, Here's How Long It Would Take for Gas Prices to Fall See full bio Editor: Katherine Peach Katherine Peach Associate Editor | Joined January 2025 Katherine Peach is an associate editor with a focus on news and email at Money. She didn’t always intend to write about money. She’s a classically trained pianist who dreamed of becoming an archaeologist. However, in 2007 Katherine began working in financial publishing as an editor for Agora Inc. (Apparently, unearthing ideas about improving your personal finances isn’t such a bad career alternative!) Katherine’s writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others. Katherine holds a Bachelor of Arts in Ancient Studies with concentrations in Archaeology and Ancient Languages and a minor in Literature from the University of Maryland, Baltimore County. She is a member of Phi Beta Kappa. Has also written: What Should You Do With Your Pennies? Here Are the Best Options How to Protect Yourself From Card Skimmers at ATMs and Gas Pumps Stamp Prices Won't Rise This Month, but These USPS Shipping Costs Will Debit Card Fraud Is on the Rise. Here's What I Did When It Happened to Me New Bill Aims to 'Actually' End Taxes on Social Security See full bio Published: Apr 16, 2026 5 min read Money; Getty Images A college degree pays for itself, new research shows. It’s just a matter of time. Because of the high cost of attending college plus the years outside of the workforce that it takes for college students to complete their studies, high school graduates out-earn college grads for the first 16 years of adulthood, according to findings from a new study by the nonprofit College Board. It isn’t until age 34 that graduates with a bachelor’s degree truly start to see the benefit in terms of earnings. Ads by Money. We may be compensated if you click this ad.AdCollege grads earn more over timeEven with high college costs, degree holders typically earn significantly more over their lifetime. Explore your Student Loan options by clicking on your state below.HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexasView Rates “A college degree is one of the largest investments most families make, and students and families are right to ask what they can expect in return,” Jessica Howell, vice president of research at the College Board, said in a news release Tuesday. “Education remains a powerful driver of opportunity, but there are differences in outcomes.” The College Board’s analysis determined this by looking at cumulative earnings for U.S. adults at all education levels, while accounting for the cost of attending college. From 18 to 33, high-school graduates have the upper hand because they started working and earning right off the bat and had no higher education costs, while college students delayed their earnings for four years to complete their bachelor’s degrees — and had to pay those degrees off. At age 34, high school graduates lose their advantage. By that time, the typical high school grad has cumulatively earned about $476,000, and the bachelor’s degree holder has, for the first time, earned more: $485,000. Every year following, the bachelor’s degree holder strengthens the lead, and the earnings gap grows. By age 64 — the oldest in the College Board’s analysis — the typical high school grad has earned just under $1.1 million to the four-year college grad’s $1.6 million. In other words, bachelor’s degree holders typically earn 46% more money in their lifetime than high school grads, even after accounting for the cost of college. A major caveat To be clear, the College Board’s analysis makes a few assumptions: that the full-time working age starts at 18 for high school grads and 22 for bachelor’s degree holders. Another assumption is that the bachelor’s degree was completed in four years, totaling roughly $92,300. In reality, just under half of bachelor’s degree-seeking students actually graduate in four years, according to data from the Department of Education. And not all college students start at age 18, either. Additionally, the earnings include all majors for college grads, and some majors are far more lucrative than others. Early-career income (ages 22-27) Mid-career income (ages 35-45) Unemployment rate Computer engineering $90,000 $131,000 7.8% Computer science $87,000 $120,000 7% Aerospace engineering $85,000 $130,000 2.2% Chemical engineering $85,000 $135,000 4.7% Industrial engineering $83,000 $100,000 4.2% Adam Hardy for Money.com; NY Fed For instance, computer engineering majors enjoy the highest wages among all majors for early-career grads ($90,000), and by mid-career they earn $131,000, according to the New York Federal Reserve Bank. However, the unemployment rate among those majors is 7.8%, second only to anthropology majors at 7.9%. For all workers, regardless of education, the unemployment rate is 4.2%. On the opposite end of the income spectrum, pharmaceutical-related majors tend to earn only $40,000 early in their careers. Typical earnings for all grads straight out of college are about $46,000, according to the College Board.

But New York Fed data shows that recent grads with 17 of some of the most popular majors — including hospitality, education and psychology — earn less than that. Assuming they find stable employment, computer engineering majors are likely to see the benefit of their degree long before age 34. Meanwhile, a psychology major might not see the perks until their 40s. In the end, though, college grads tend to come out on top regardless of major. “The question isn’t just whether education pays — it’s which pathways lead to the strongest outcomes,” Howell said. “This report illustrates the importance of where to enroll, what to study and completing a degree in a timely fashion.” Ads by Money. We may be compensated if you click this ad.AdCompare Student Loan companies to find the right fitView Rates#1 on Forbes, CNBC, Money, CNN & Fund.com Lowest rate - starting at 2.84% APR 1 Cover up to 100% of your school costs 2 Flexible options for repayment No application, origination, or prepayment fees Checking rates won't affect your credit score Rates as of March 24, 2026 View RatesBorrow up to 100% of school-certified expenses, whether you're online or on campus. Fixed rates 2.89% - 17.49% Variable rates 3.87% - 16.50% Lowest rates shown include 0.25 percentage point interest rate discount with auto debit payments.¹ Multiple repayment options from in-school payments to deferred.¹ No origination fee or prepayment penalty.² Borrow up to 100% of school-certified expenses, whether you're online or on campus.³ Last year, students were 4x more likely to be approved with a cosigner.⁴ 1Undergraduate Loan - Fixed rates 2.89% - 17.49% APR* with auto debit discount. View RatesNo fees required Covers full attendance cost Fixed rates from 3.23%-15.99% APR (with autopay) Variable rates from 4.64% - 15.99% APR (with autopay) Save on interest with rate discounts for autopay (0.25%), continuing scholar borrowers (0.125%), and cosigners taking a second student loan (0.25%). US, Puerto Rico, and the US Virgin Islands residents are eligible for student loans* Get a quote online in minutes *Borrowers must attend an approved school within these areas to qualify. View RatesFast application and decision-making process6 Fixed APR starting at 2.89%8,7 Provides customized private loan options for students Enjoy no early prepayment penalties1 Skip a payment once per year (once repayment period restarted)5 View RatesRates starting at 2.99% Prequalify to estimate rate without affecting your credit score Submit online application in minutes No application fees, origination fees, and/or prepayment penalty Flexible repayment terms to fit your needs and goals Student Loan Advisor to guide you through the application process More from Money: How to Choose a College Major in the Age of AI The Ultimate Guide to Paying Less for College Prediction Markets Have an Insider Trading Problem.

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