College Education for 2025: Influence on Higher Pay & Job Security

by Imed Bouchrika, Phd

Co-Founder and Chief Data Scientist

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Students and parents alike have been in awe of how much has college tuition increased in recent years. This comes as no surprise, with average tuition fees costing $37,600 per year at private nonprofit institutions, $18,200 per year at private for-profit schools, and $9,400 per year at public colleges (NCES, 2021). However, as expensive as receiving a college education may be, it is also a good investment toward one’s future. There are many studies that show the value of college degree over time, such as the College Board’s triennial report, Education Pays (Ma et al. 2019).

Having a college degree as part of their credentials is often linked to higher pay, job security, and other societal benefits. However, it seems there is more to this equation than meets the eye. This guide discusses how one’s occupation, gender, and race and ethnicity also impact remuneration.

College Education Linked to Higher Pay for 2025 Table of Contents

1. Economic Benefits of College Education
2. The Role of Lifelong Learning in Career Advancement
3. What Are the Advantages of Accelerated Degree Programs for Career Growth?
4. Is an Associate's Degree a Cost-Effective Alternative for Career Advancement?
5. How can smart financial strategies mitigate rising college costs?
6. Mental Health and Overall Well-Being Effects of College Education
7. Occupation Influences Earnings
8. Is an Accelerated Associate Degree Program a Smart Career Investment?
9. Are Accredited Non-Profit Online Programs Worth Considering for Career Growth?
10. Pay Gaps by Gender, Race and Ethnicity
11. How can online degrees impact your career prospects?
12. Can supplemental certifications boost your career prospects?
13. Can trade school programs enhance your career prospects?
14. Getting a College Degree Is More Than Just the Money

The cost of getting a college degree continues to rise. Checking up on records, the cost of college in the 1970s in today’s equivalent was anywhere in between $17,000 and $18,500 for a private university (Hess, 2019). Going to a public one could set you back between $8,000 to $9,000. In 2019, based on published or sticker prices on the Trends in College Pricing Highlights, a private university costs about $37,650, while studying in public four-year out-of-state university costs around $27,020 (Ma et al., 2020).

These figures are causing a lot of students and their families to question the value of college education, especially with federal and private student loans already totaling $1.6 trillion. So, does higher education lead to better jobs? Based on return of investment alone, data shows that people with the highest educational attainments earn more than triple compared to individuals who have the lowest levels of education (Torpey, 2018). What is PhD or a master’s degree’s impact when it comes to employment? The Bureau of Labor Statistics data shows that job stability with a college degree also have a direct correlation. The unemployment rate among people who have a doctoral degree was at 1.5% compared to 6.5% for people who have less than a high school diploma in 2017 (Torpey, 2018).

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Economic Benefits of College Education

Why does education level impact your salary? As evident from the BLS data, educational attainment, a bachelor degree meaning, has a considerable impact on one’s earnings. In terms of economic benefits, obtaining a post-secondary credential is almost always an investment that pays off. There are more studies that support this assertion.

College-Degree Holders Have Higher Median Income

Comparing key findings from the 2016 and 2019 Education Pays report, we see that the results are consistent through the years when it comes to income. For example, in 2018, the median salary of full-time, year-round workers aged 25 and older with a bachelor’s degree is $65,400—$24,900 more than the median salary of individuals who possess a high school diploma (Ma et al., 2019). In the previous report, the median earnings of bachelor’s degree holders were $24,600 higher than those of high school graduates (Ma et al., 2016).

College-Degree Holders Have Higher Lifetime Earnings

Another in-depth study looked at the differences in lifetime earnings based on educational attainment. It revealed that someone who has a bachelor’s degree could expect to earn 84% more over a lifetime than someone with a high school diploma, which was up from 75% in 1999 (“The College Payoff," 2011, p. 2). The estimated lifetime earnings of a high school diploma holder were $1.3 million compared to $2.3 million for someone who has a bachelor’s degree.

Moreover, lifetime earnings go all the way to the graduate level. The figures are $2.7 million, $3.3 million, and $3.6 million for a master’s degree, doctoral degree, and professional degree holder, respectively.

Data from 2019 on median household income in the United States also indicate the same pattern of higher earnings for highly educated people. Individuals who had the highest median household income—$162, 127—were people with professional degrees. Meanwhile, the lowest median household income—$30,355—was for people with less than a 9th-grade education (Duffin, 2020).

College-Degree Holders Have Better Job Security

People with higher education are also more likely to have secure jobs, as evidenced by the unemployment rate in different degree levels. In 2015, among 25-to 34-year-olds bachelor’s degree holders, the unemployment rate was 2.6% compared to 8.1% among those with a high school diploma (Ma et al., 2016). This trend is also consistent with data presented in the BLS report in 2017, where it shows a higher unemployment rate—4.6%—among people who only finished high school. For comparison, the unemployment rate for those who finished a bachelor’s degree was 2.5%, 2.2% for those with a master’s degree, and 1.5% for people who have a professional degree and doctoral degree (Torpey, 2018). Also, US college trends and statistics data show that as of 2018, 83% of people with a bachelor’s degree were employed, while it was 68.8% for people with a high school diploma.

College-Degree Holders Benefit the Country as a Whole

Higher education is beneficial not only to the individual but also to the country. People with post-secondary degrees have a better chance of improving their quality of life and going up the social ladder. Case in point: the poverty rate among bachelor’s degree holders is 4%, while it is 13% for people who only have a high school diploma. Additionally, people with a college degree pay more taxes, are more engaged in civic work, and are more likely to save up for retirement and have health insurance (Ma et al., 2019).

The Role of Lifelong Learning in Career Advancement

As industries evolve and career paths diversify, the concept of lifelong learning has become increasingly relevant for professionals. The ability to learn continuously and adapt to new technologies, methodologies, and market trends is now a critical skill, particularly in fast-moving fields like IT, healthcare, and business.

Lifelong learning isn’t confined to traditional degree programs; it includes certifications, skill-specific courses, and online degree options tailored to working professionals. For example, those seeking efficient ways to balance education with existing responsibilities can explore accelerated bachelors degree programs for adults. These specialized programs are structured to help learners gain credentials in a shorter time span while maintaining academic rigor and focus. Such pathways provide an edge in competitive job markets, equipping individuals with up-to-date knowledge and career-enhancing qualifications.

Beyond career-specific skills, lifelong learning fosters cognitive flexibility and encourages critical thinking, traits increasingly valued by employers across industries. It empowers individuals not only to stay relevant but also to pivot into new career opportunities when needed. Moreover, the pursuit of education often demonstrates to employers a commitment to personal growth and professional excellence, further enhancing one’s employability.

Those who invest in continuous education are also better prepared to address the challenges of emerging trends such as automation and globalization. By proactively upgrading their skill set, professionals can secure their place in the workforce while positioning themselves for leadership roles. Therefore, lifelong learning is not just an optional endeavor but a crucial strategy for long-term career success.

What Are the Advantages of Accelerated Degree Programs for Career Growth?

Accelerated degree programs offer a streamlined path to obtaining qualifications that can quickly translate into career advancement. These programs emphasize intensive, focused learning environments that reduce time-to-degree while maintaining academic rigor. By compressing coursework and leveraging innovative teaching methods, learners can acquire industry-specific skills faster and reenter the workforce in a shorter time span. This efficiency not only minimizes opportunity costs but also provides a competitive edge in dynamic job markets where time and up-to-date expertise are crucial. For instance, students pursuing an accelerated marketing degree can expect to gain specialized knowledge that directly aligns with evolving marketing trends and digital platforms, fostering both technical proficiency and strategic insight necessary for rapid career progression.

Is an Associate's Degree a Cost-Effective Alternative for Career Advancement?

For many professionals and students alike, an associate degree represents a strategic, lower-cost pathway to enter high-demand industries. Compared to traditional four-year programs, these programs often offer more focused curricula, practical skill development, and accelerated entry into the workforce, which can result in reduced student debt and quicker earnings. Furthermore, many reputable institutions now provide flexible options, including associate's degree online, that cater to working adults and those seeking to balance education with other commitments. This approach not only improves immediate employability but also lays a solid foundation for future academic or career advancements without the prolonged financial burden.

How can smart financial strategies mitigate rising college costs?

Effective financial planning is essential in managing the escalating expenses of higher education without compromising long-term financial stability. Students and families can explore a mix of scholarships, grants, and income-driven repayment plans to reduce the reliance on high-interest loans. Evaluating flexible payment schedules, budgeting techniques, and personalized financial advising also aids in minimizing the educational debt burden. Moreover, choosing cost-effective programs that align with market demands is crucial—for example, examining programs like 2 year degrees that earn the most money can inform strategic decisions and enhance future earning potential.

Mental Health and Overall Well-Being Effects of College Education

While much of the discussion around college education focuses on financial and career benefits, the impact on mental health and overall well-being is another crucial factor.

• Lower Stress Levels in the Long Term: College graduates often experience lower stress levels related to financial stability and job security. This is attributed to higher earnings and better job prospects, reducing anxiety over finding and maintaining employment.
• Increased Access to Mental Health Resources: Many universities offer mental health resources and services, helping students manage stress, anxiety, and other mental health concerns during their academic journey. Post-graduation, those with a degree may have better access to employer-provided health insurance, including mental health benefits.
• Enhanced Social Connections: Attending college also fosters strong social networks, which play a role in improving mental well-being. Graduates often have access to professional and personal support networks that help navigate life’s challenges.
• Improved Life Satisfaction: Research indicates that individuals with higher educational attainment report higher levels of life satisfaction and happiness, largely due to improved financial security, personal development, and opportunities for career growth.

Occupation Influences Earnings

What’s clear so far is that a college degree—or the lack of it—affects an individual’s earning potential. However, this is not an absolute rule. The actual job or work performed also impacts income. Someone who has less education can sometimes make even more than graduates of the highest paying college majors.

For example, 31% of high school dropouts earn more than people who successfully finished high school, while 37% of high diploma holders take home bigger paychecks than people who have some college education. Furthermore, 28% of people who only have associate degrees earn more than those who have a bachelor’s degree, and 40% of bachelor’s degree holders make more than master’s degree holders (“The College Payoff," 2011, p. 3).

Some examples of top-paying occupations for people who have less than a high school diploma include Construction Equipment Operators, Industrial and Refractory Machinery Mechanics, and Construction Managers. For high school diploma holders, top-paying jobs include Electricians, Postmasters and Mail Superintendents, and General and Operations Managers. However, those who prefer formal college education can go for a construction project management degree online or on-ground.

Keep in mind that even if there are situations where the actual occupation wins over education level, having a college degree is still more advantageous within individual occupations. Based on a survey by the College Board and US Census Bureau, 2013 to 2017 median income of people who hold a bachelor’s degree or higher was always more than those with only a high school diploma in the same occupation. The median income of bookkeeping, accounting, and auditing clerks, for instance, with only a high school diploma was $37,200 compared to $42,900 for those who have a bachelor’s degree or higher (Duffin, 2020).

Is an Accelerated Associate Degree Program a Smart Career Investment?

Accelerated associate degree programs provide a streamlined route to acquire essential skills and industry-recognized credentials in a compressed timeframe. These programs focus on practical applications and targeted training, enabling professionals to quickly meet evolving market demands while minimizing opportunity costs. Individuals seeking rapid entry or advancement into high-demand fields may benefit from this accelerated approach, which enhances employability without prolonged time-to-degree. For further insights on accelerated learning pathways, consider an accelerated associate degree program.

Are Accredited Non-Profit Online Programs Worth Considering for Career Growth?

Accredited program status is a critical indicator of curriculum quality and industry relevance. Choosing programs from accredited online colleges non-profit systems can provide enhanced credibility, improved credit transferability, and access to valuable professional networks. This alignment with recognized standards ensures that the education received not only meets rigorous academic benchmarks but also delivers measurable career benefits, supporting long-term job stability and advancement.

Pay Gaps by Gender, Race and Ethnicity

Data show that a college degree can still be overshadowed by certain factors like gender when it comes to remuneration. Based on 2019 mean earnings by gender and educational attainment, women earned less than men at all levels of education (Duffin, 2020). Meanwhile, men with some college but no degree earn lifetime earnings around the same as women with a Bachelor’s degree. For the lifetime earnings of women to come close to that of men with a bachelor’s degree, they would need to obtain a doctoral degree (“The College Payoff," 2011, p. 7).

Similarly, race and ethnicity seem to also play a role in how much an individual earns at the same education level. Data from the U.S. Census Bureau and the U.S. Department of Commerce show that 2019 mean earnings of Hispanics with a bachelor’s degree were $58,722, African Americans, $61,720; Asians, $78,148; and Whites, $80,214. At most education levels, Whites topped the income list, while Asians had the highest mean earnings at the masters and doctoral levels (Duffin, 2020).

Moreover, the median lifetime earnings of Hispanics and African Americans with master’s degrees do not go past the median lifetime income of Whites with bachelor’s degrees. Asians who hold postgraduate degrees, on the other hand, earn more in a lifetime than all races at the same education level (“The College Payoff," 2011, p. 7).

How can online degrees impact your career prospects?

In recent years, online education has rapidly gained popularity, offering flexible and accessible learning options for students balancing work, family, and education. One of the primary benefits of online degrees is that they allow individuals to pursue higher education without sacrificing their current job or personal life. Whether you are looking to change careers, advance in your current field, or gain specialized knowledge, earning a degree online can significantly enhance your career prospects.

Many reputable universities now offer high-quality online programs in various fields such as business, healthcare, and technology. These programs are designed to be as rigorous and rewarding as their on-campus counterparts, providing students with a solid foundation and advanced skills. For example, if you're considering a career in a rapidly growing field like nursing, online programs like a most affordable master's degree online can be an excellent choice, combining affordability with flexibility.

Online degrees also allow students to learn at their own pace, offering greater control over their education. This flexibility is especially beneficial for those who are already in the workforce and need to balance their education with professional responsibilities. Additionally, online degrees can help expand your network, as you interact with professors and peers from across the globe. This global exposure can lead to valuable career connections and open doors to new job opportunities.

Can supplemental certifications boost your career prospects?

Obtaining a degree is an important milestone, yet supplementing it with industry-recognized certifications can further validate specialized skills and provide a competitive advantage. Targeted certifications not only keep professionals updated with the latest technological advancements and methodologies but also signal a commitment to continuous learning. In certain industries, employers prize these credentials for their role in ensuring job readiness and validating technical expertise. For those seeking to quickly expand their proficiencies alongside their degree, exploring easy certifications to get online can offer practical benefits and accelerate career progression while enhancing overall marketability.

Can trade school programs enhance your career prospects?

Trade school programs offer a practical alternative to traditional academic routes by delivering focused, hands-on training in a shorter timeframe. These programs emphasize industry-specific skills that align with market demands, providing a cost-effective pathway to secure well-paying positions in sectors such as healthcare, skilled trades, and emerging technological fields. Vocational education combines real-world applications with technical training, which can result in rapid job placement and competitive starting salaries. For more information on pursuing this pathway, explore our list of online trade school programs.

Getting a College Degree Is More Than Just the Money

How does college increase job opportunities? Though there are many factors that influence income, the data is clear: life after college can lead to better opportunities. Those who pursue higher education and obtain their degrees also increase their chances of securing jobs that pay higher salaries. Indeed, there are high paying occupations that don’t require a college degree. However, several studies we cited here point to the reality that workers who have a college degree still earn more for the same job compared to those without.

Another important point to consider is lifetime earnings. We see that across all races and ethnicities and in both genders, those who obtain post-secondary credentials earn more over the course of a lifetime. People who have less than a high school diploma, across all races and ethnicity, do not reach $1,000,000 in lifetime earnings. On the other hand, people who obtain their degrees can have lifetime earnings of anywhere between $3,000,000 to $4,000,000 (“The College Payoff," 2011, p. 7).

But it’s also important to remember that a college degree is more than just the money. Based on the studies we presented here, higher education is also a source of many other societal benefits and can help individuals gain the prerequisites to leading a comfortable and fulfilling life. Just think of the fact that college graduates are 47% more likely to have health insurance through their employment, and their employers contribute up to 76% to their health coverage (“How does a college degree improve graduates’ employment," n.d., para. 4).

On the importance of a college education, it provides professional versatility since you can apply your degree to multiple fields, have more options when it comes to jobs, and continue adding to your experiences and skills throughout your career journey. In other words, a degree gives you not only money but also the longevity of a profession. 

Key Insights

• Rising College Tuition Costs: Average annual tuition fees are $37,600 at private nonprofit institutions, $18,200 at private for-profit schools, and $9,400 at public colleges.
• Long-Term Economic Benefits: College graduates typically earn significantly more over their lifetimes compared to those without a degree. Median annual earnings for bachelor’s degree holders are $65,400, which is $24,900 more than those with only a high school diploma.
• Job Security: Higher educational attainment correlates with lower unemployment rates. The unemployment rate for bachelor’s degree holders is significantly lower than for those with only a high school diploma.
• Income Disparities: Earnings vary significantly by occupation, gender, race, and ethnicity. Women and minorities often earn less than their white male counterparts even with similar educational qualifications.
• Lifetime Earnings: Lifetime earnings increase with higher educational attainment. Individuals with a bachelor’s degree can expect to earn $2.3 million over their lifetimes, compared to $1.3 million for those with only a high school diploma.
• Occupational Influence: While education generally leads to higher earnings, the specific occupation also plays a crucial role in determining income levels.
• Societal Benefits: College graduates contribute more in taxes, are more engaged in civic activities, and are more likely to have health insurance and retirement savings.

FAQ

1. Why have college tuition costs increased so significantly? College tuition costs have risen due to factors such as reduced state funding for public institutions, increased demand for higher education, rising operational costs, and the expansion of services and facilities at colleges and universities.
2. Is a college degree worth the high cost? Despite the high cost, a college degree is generally considered worth it due to the long-term financial benefits, including higher lifetime earnings, better job security, and additional societal benefits such as health insurance and retirement savings.
3. How does the cost of tuition vary between public and private colleges? Public colleges generally have lower tuition costs than private colleges. The average annual tuition at public colleges is $9,400, while it is $37,600 at private nonprofit institutions and $18,200 at private for-profit schools.
4. What are the differences in earnings based on educational attainment? Individuals with higher educational attainment typically earn more. For instance, bachelor’s degree holders earn a median annual salary of $65,400, compared to $40,500 for high school graduates. Lifetime earnings also increase with higher degrees, with professional degree holders earning up to $3.6 million over their lifetimes.
5. How do gender, race, and ethnicity impact earnings? Gender, race, and ethnicity significantly impact earnings. Women generally earn less than men at all educational levels, and minorities often earn less than their white counterparts. For example, Hispanic and African American individuals with a bachelor’s degree earn less than white individuals with the same degree.
6. What occupations offer high earnings without a college degree? High-paying occupations that do not require a college degree include construction equipment operators, industrial machinery mechanics, and electricians. However, these cases are exceptions, and higher education generally leads to higher earnings within the same occupation.
7. How does a college degree impact job security? A college degree generally leads to better job security. The unemployment rate for individuals with a bachelor’s degree is significantly lower than for those with only a high school diploma. Higher educational attainment also correlates with lower unemployment rates.
8. What other benefits come with obtaining a college degree? Besides higher earnings, college graduates enjoy several other benefits, including better health insurance coverage, retirement savings, and increased civic engagement. They are also less likely to live in poverty and contribute more in taxes.

References:

• APLU (n.d.). How does a college degree improve graduates’ employment and earnings potential? Projects & Initiatives. Washington, DC: Association of Public & Land Grant Universities.
• Carnevale, A., Rose, S., & Cheah, B. (2011). The College Payoff. Washington, DC: GU Center on Education and the Workforce.
• College Board Editors (2020). Trends in college pricing highlights. College Board.
• College Board. (2016). Education pays 2016. Trends in Higher Education Series. New York, NY: College Board.
• College Board. (2019). Education pays 2019. Trends in Higher Education Series. New York, NY: College Board.
• Duffin, E. (2020a, October 5). Mean earnings in the United States in 2019 by highest educational degree earned and ethnicity/race. Statista.
• Duffin, E. (2020b, September 22). Distribution of full-time worker median income in the United States from 2013 to 2017, by education level and occupation. Statista.
• Duffin, E. (2020c, September 22). Mean earnings in the United States in 2019, by highest educational degree earned and gender. Statista.
• Duffin, E. (2020d, September 22). Median household income in the United States in 2019, by educational attainment of householder. Statista.
• Hess, A. (2019, September 4). Here’s how much college cost the year you were born. CNBC.
• NCES (2021). Tuition costs of colleges and universities. NCES
• Torpey, E. (April, 2018). Measuring the value of education. Career Outlook. Washington, DC: US Bureau of Labor Statistics.