More education often means more money.
Median wages in 2023 were roughly 16% higher for master's degree-holders compared with those with only a bachelor's degree, and nearly double the earnings of those with only a high school diploma, according to the Bureau of Labor Statistics.
Getting that degree is often a huge financial undertaking, though. Nearly half of master's degree-earners take out loans to pay for grad school and wind up owing an average of $53,920, according to the National Center for Education Statistics. Federal graduate school loans are more expensive, too, with higher interest rates than loans for undergraduate studies.
On top of that, 55% of master's degree-holders have debt from both their undergraduate and graduate studies, owing an average total of over $69,000.
If you're looking to pursue an advanced degree, it's wise to get an idea of how that credential may or may not improve your salary prospects. Similar to undergraduate degrees, science, technology, engineering and math-related master's degrees tend to lead to higher-paying salaries compared with degrees in the arts and humanities.
But take any salary reports with a grain of salt; many grad students have already started their careers before getting their master's, and thus could have work experience that boosts their salaries. Your starting salary will depend on your own level of experience in addition to your degree.
That said, these are the 10 master's degrees with the highest average starting salaries for the class of 2022, according to the National Association of Colleges and Employers.
- Computer and information sciences: $105,890
- Engineering: $98,040
- Engineering technologies and related fields: $90,610
- Business management, marketing and related services: $87,980
- Transportation and materials moving: $84,100
- Mathematics and statistics: $83,440
- Legal Professions and studies: $74,650
- Liberal arts and sciences, general studies, humanities: $72,680
- Multi/interdisciplinary studies: $71,940
- Health professions and related programs: $70,960
However, not all master's degrees pay off. In fact, fewer than 60% of master's degree programs deliver a positive return on investment, according to a recent study by The Foundation for Research on Equal Opportunity.
The median ROI — defined as the lifetime earnings a student can expect when they enroll in a degree program minus their cost of attendance and earnings lost while enrolled — for all master's degrees is around $50,000, FREOPP finds. FREOPP used the Department of Education's College Scorecard as well as Census Bureau earnings data to estimate ROI for over 53,000 degree and certificate programs.
While that may seem enticing enough for many students to enroll in a graduate program, it's a little misleading given the wide variation in salary outcomes for master's degree-holders, FREOPP says.
Over 100,600 students are pursuing master's degrees with an expected ROI of $1 million or more, for example, but over 630,000 students are in programs with a $0 or negative expected ROI, according to FREOPP's analysis.
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