College Still Pays Off, New Data Shows

New Census Data Confirms College Still Pays Off

Many Americans question whether a college degree is still worth the investment. Yet new Census Bureau figures and research from the Federal Reserve Bank of New York reveal that the payoff remains substantial—both in income and in long-term returns.

College Graduates Earn More Than Twice as Much

In 2024, the median household income for those with a bachelor’s degree was $132,700. That’s more than double the $58,410 median income for households led by someone with only a high school diploma.

Over the last 20 years, the gap has widened:

• High school graduate households saw almost no income growth.
• College graduate households saw a 13.1% income increase (a $15,000 gain).

Lifetime Return Beats Stocks and Bonds

A 2025 analysis by the New York Fed found that the median lifetime return of a college degree is 12.5%, outperforming:

• The stock market (about 8%)
• Bonds (around 4%)

Returns can vary depending on major, with fields like business, engineering, and health science yielding the highest payoffs.

Sticker Price vs. Net Price

While the “sticker price” of tuition often seems overwhelming, most students receive grant aid or scholarships that reduce the actual cost.

According to the College Board, the average net tuition and fees have fallen over the past decade:

• Public universities: $2,480 in 2024–25 (down from $4,340 in 2012–13)
• Private four-year universities: $16,510 in 2024–25 (down from $19,330 in 2006–07)

Why College Is Still Worth It

Even though recent graduates face higher unemployment than older peers, they still fare much better in the job market than those without degrees. As researchers Jaison Abel and Richard Deitz of the New York Fed explained:

“College is still worth it—at least, for most people. Even though some recent graduates may be having difficulty finding a good job right now, they are in a much better position than similarly aged workers without a college degree.”

Bottom Line: Despite skepticism and rising tuition headlines, college remains one of the most reliable long-term investments in financial well-being, offering higher income, stronger job security, and a return that outpaces most traditional investments.