Is a master's degree a profitable investment?

That is the result of a recently published study by expert Preston Cooper of the Foundation for Research and Equal Opportunity (FREOPP, USA) based on data analysis from the US Census Bureau and the US Department of Education.

Income lower than expected

Specifically, among the 53,000 bachelor's and master's degree holders from FREOPP, an estimated 23% of university graduates have incomes lower than expected or not commensurate with the cost of their studies. At the master's level, this figure is up to 43%.

FREOPP expert Preston Cooper came up with the above ratio through an analysis of return on investment (ROI). In business, if ROI> 0, the project has a positive rate of return, meaning the investing company makes a profit; if the ROI is negative, it is a loss.

In Cooper's study, the net profit rate was the average income immediately after graduation and 10 years later; and the investment cost was the total cost of the program.

Nearly 43% of master's degree holders earn less than expected or are not commensurate with the cost of their education.

Cooper found that more than 77% of bachelor's degree holders had a positive ROI, while master's degrees only had a positive ROI of 57%.

“Even those who study an MBA (master of business administration), one of the most popular master's degrees in the US, have low earnings (negative ROI) after graduation,” Mr. Cooper warned in the study.

The Only Major with a 6-Figure Salary

The study also found that a student's field of study is a key indicator of positive or negative ROI (return on investment) at the undergraduate and graduate levels.

Bachelor's degrees in engineering, computer science, and nursing have high ROIs, while programs in education, fine arts, psychology, and English have low or even zero ROIs.

So, Cooper advises: “When choosing a university and a program, students should evaluate several key factors that contribute to ROI. The most important is earnings after graduation.”

"In addition to starting salary, another important factor is the school's program completion rate. Individual ability and motivation determine the ability to complete the program. However, studies show that the quality of teaching and the learning environment also affect the program completion rate of students," Mr. Cooper emphasized.

Master's in information and computer science has a starting salary of more than 100,000 USD/year in the US

The only field of study that can yield a six-figure starting salary for someone with a master's degree is computer and information science, according to Mr. Cooper's report.

The National Association of Colleges and Employers (USA) analyzed data from the class of 2022 and found that the average starting salary for those with a master's degree in computer and information science is $105,894/year. Meanwhile, those with a bachelor's degree in the same field earn less, about $86,964/year.

In February, a report by two labor research organizations, The Burning Glass Institute and Strada Institute for the Future of Work, found that more than 50% of American college graduates are working in jobs that do not require a bachelor's degree.

Source: https://thanhnien.vn/hoc-thac-si-co-phai-la-khoan-dau-tu-sinh-loi-hay-khong-185240601144708052.htm