New graduates need to earn at least $50,000 a year, on average, in their first decade off campus for the degree to pay off, according to new research from Strada Education Foundation, a nonprofit that analyzed federal education and earnings data. If they can land that salary, or make $500,000 before taxes over 10 years, state school graduates across sectors will find the investment worth it and should be able to pay off their loans, Strada says.
At a time when many Americans are questioning the value of a college degree—and some teens and 20-somethings are forgoing higher education for trade work like plumbing, welding and construction—four-year state universities are a bargain compared with their private counterparts and still often provide a path to financial security.
“As long as you’re above that $50,000, even in the most expensive states, you’ll still have that positive return on investment,” said Nichole Torpey-Saboe, Strada’s vice president of research.
James Maiden, 32 years old, dropped out of the University of Missouri-Kansas City about a decade ago because he needed to make money. He held various jobs, including at a shoe store, before landing one as a marketing manager for a nonprofit theater in Kansas City, Mo., where he earned less than $50,000. It was tough to envision a career path.