How to Get Out of Debt With the Get Out of Debt Guy » bachelors degree

Is College Worth It? The Value of College

Amanda Miller — Thu, 09 Jun 2011 22:28:48 +0000

Georgetown University released a study that looked at how much a college education is really worth. Researchers examined different bachelor’s degrees, their median earnings and then broke down their findings to study differences in varying demographics. They state that “which degree you have matters – but so does your major.”

It has been shown that different majors yield different ranges in income regardless of having completed a bachelor’s program. Overall researchers found that “a full-time, full-year worker with a Bachelor’s degree can expect to earn 84% more than a colleague who has no better than a high school diploma.” Now, that’s a staggering amount more than high school graduates will earn in their lifetime but what about the breakdown between different majors. Below is a list compiled within this study that shows the median earning potential by major:

Engineering: $75,000
Computers and Mathematics: $70,000
Business: $60,000
Health: $60,000
Physical Sciences: $59,000
Social Science: $55,000
Agriculture and Natural Resources: $50,000
Communication and Journalism: $50,000
Industrial Arts and Consumer Services: $50,000
Law and Public Policy: $50,000
Biology and Life Science: $50,000
Humanities and Liberal Arts: $47,000
Arts: $44,000
Education: $42,000
Psychology and Social Work: $42,000

The chart below breaks down the divisions of majors and shows the popularity of the major, median earnings by major, earnings at the 25th and 75th percentile, percent obtaining a graduate degree, earnings boost obtaining a graduate degree, work status and percent employed.

Click on image for larger view.

There are so many things to take into consideration when choosing a major. Consider the following…

We can see that Business majors are by far the most popular degrees with 25% of all majors being Business majors. Only 8.2% of bachelor’s earners are in the field of Engineering which draws in the greatest median salary of $75,000. Engineering majors also have the greatest earning at the 25th percentile with $53,000 and earnings in the 75th percentile of $102,000. With a staggering 80% we see Communications and Journalism majors have the highest percentage of not completing their degree and a whopping 54% of Biology and Life Science majors continue on to obtain their graduate degree which boosted their percentage of earnings by 101%. We can tell from this list that getting a degree in Engineering will most likely bring in a nice pay check but we see the highest percentage of employment lies within the Health field (just 4 percentage points up from Engineering).

The picture below shows a breakdown of bachelor’s majors by men and women.

Click on image for larger view.

We see a high percentage of women working in the Health field while men are dominating the Engineering field. Men and Women both pull the highest salaries within Engineering which isn’t much of a shock since we saw in the previous chart Engineering brings in the highest median of salary. What blows my mind is the difference in salary between men and women. Men bring home more than women in every major but we see in Social Sciences men bring in $18,000 more than women. And if that fact doesn’t deserve a social experiment, I’m not sure what does.

If you’re planning on taking out student loans to pay for school it’s tremendously important to know what sort of salary figure you’ll be facing. Another thing to take into remember is that most fresh graduates do not start pulling in large salaries until years after graduation. It’s best not to delude your mind into thinking that as soon as you graduate you’ll earn $80,000 off the bat and be able to pay off those loans quicker. Be aware of what awaits and factor in your student loan amounts and payments into the big picture of life.

To read the entire study do so here.

“They’ve Asked Me To Take a Pay Reduction. What Do You Think?”

Steve Rhode — Thu, 09 Oct 2008 18:53:09 +0000

From How to Get Out of Debt

NoName

“Dear Steve,

I am 47, divorced, 2 teenagers, work full time as radiological technologist at privately owned company out of the state. The doctors group that read our films own our building.

After my divorce I filed chapter 7 bankruptcy. I reinstated my van, rent townhouse in mid lease. I have no debt except my van which is a 2000 and I owe about 8 months left. My company volume has gone down and we have less staff then we ever have because of eliminating positions.

Last week the company out of Florida called Presgar sent all 31 facilities in the US an across the board 7% reduction in pay, top to bottom staff.

I now make $20.00 an hour and I have a very strict budget with no extras, no savings, living pay check to pay check because I only make enough for that. I am putting a small amount into a 401K.

How do I know that my company will really be able to pull out of this like they are telling us they want to happen or they are in bankruptcy or something of the sort. I don’t know if I should assume the worst or hang in on my job. Jobs aren’t in big demand in my speciality. I could hang in and do nothing, get a second job, change completely or go to school for another more demanding in my field or get a bachelors degree.

I presently do mammograms with low reimbursement to company. I am loyal and in good favor there. What are your thoughts. What’s your wisdom on this?

NoName”

The Answer:

Dear No Name,

It is a terrible stressful situation to be just making it from month-to-month and then be asked to take a salary reduction. I’m sorry that you are going through that.

If you find that you are having to use credit to make it each month, you might want to consider suspending your 401(k) contribution right now so you can live within your income instead of supplementing it with credit.

As I write this the U.S. is facing some very uncertain economic times. But the good news is that the vast majority of people do have jobs. Our unemployment rate is not horrible, even though it is a bit higher than what it was before.

I never like to see someone give up a current job without a new job lined up. It is good that you have marketable skills and you can easily identify employers in your area that you might be able to work for.

Rather than wait for a job to appear, I’d suggest that you call all the local facilities in your area and see if they are hiring. Often the easiest jobs to get are the ones that have either not yet been advertised or are no longer advertised, but still open. I put together this America’s Job Bank page also that might help.

It really does not sound like you have much extra time in your life for a second job and going back to school isn’t necessarily a good thing to consider unless you would be able to get a degree that would allow you to make significantly more money in a position where there are openings in your area.

The major issue with going back to school as an adult is that it is enormously expensive. Not only will you have college expenses, but you’ll still have your current monthly expenses to deal with at the same time. Don’t go back to school unless you are certain you can manage those expenses and will really finish your degree. Read “Is Going to College Really a Smart Financial Move“.

I don’t think that you have to worry yourself sick by assuming the worst right now but the prudent thing would be to make a concentrated effort to look for a higher paying job in your area first. Always better to be proactive than reactive.

Big Hug!

@GetOutOfDebtGuy

How to Get Out of Debt With the Get Out of Debt Guy » bachelors degree

Is College Worth It? The Value of College

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“They’ve Asked Me To Take a Pay Reduction. What Do You Think?”

The Answer:

The Answer:

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