- According to the College Board’s Education Pays 2026 report, bachelor’s degree holders earned an average of $81,800 in 2024 ($31,200 (62%) more than high school graduates) and $22,200 more in after-tax income.
- The typical four-year college graduate who enrolls at age 18 and borrows to cover full tuition can expect to be on par with her high school peers by age 34.
- The benefits extend beyond earnings: Bachelor’s degree holders have lower unemployment rates (2.6% vs. 4.3%), lower poverty rates (4% vs. 13%), and are more likely to have employer-provided health insurance and retirement plans.
College remains a strong financial investment, and the latest data from the College Board makes that case with the latest numbers available. education payment 2026 report (PDF file), shows that workers with a bachelor’s degree are earning significantly more than their peers with only a high school diploma, and the gap shows no signs of narrowing.
In 2024, full-time bachelor’s degree recipients ages 25 and older had average earnings of $81,800, while high school graduates had average earnings of $50,600. That’s a difference of $31,200 (62% more) each year. After accounting for taxes, graduate degree holders took home $22,200 more annually, a 56% premium in after-tax income.
This report has come at a time when people’s confidence in higher education has decreased. A 2025 Gallup poll found that the cost of college is one of the leading reasons why Americans feel less confident about the value of a degree. But the data tells a more nuanced story: where financial returns still hold up even after accounting for tuition, student loan debt and years of foregone earnings.
College income premium increases over time
The earnings benefits of a college degree aren’t just a “starting salary” story. According to the report, as workers advance in their careers, the gap between bachelor’s degree holders and high school graduates widens significantly.
For full-time workers ages 25 to 29, bachelor’s degree holders earned an average of $61,200, while high school graduates earned $38,800. By ages 55 to 59, those numbers were $93,900 and $51,900, respectively – a 53% increase for degree holders versus a 34% increase for those with only a diploma.
The premium is even higher for workers with advanced degrees. In 2024, median earnings of workers with professional degrees will reach $142,300, while those with doctoral degrees earned $125,000 and master’s degree holders earned $100,500.
Among mid-career workers ages 35 to 44, 40% of those with a bachelor’s degree earned $100,000 or more, while only 13% of high school graduates did. At the top level, 34% of advanced degree holders earned $150,000 or more.
The field of study also matters. Computer science and mechanical engineering majors had early-career earnings of $87,000 and $80,000, respectively, while mid-career earnings reached $120,000. However, computer science is currently experiencing intense headwinds and it will be interesting to see what impact this will have in the coming years.
Performing arts and elementary education majors fell at the other end of the spectrum, earning $44,000 and $45,000 in early-career and $75,000 and $55,000 in mid-career.
When does college pay for itself?
One of the most practical questions for families assessing the cost of a degree: How long does it take to recoup the investment?
The report calculated that the typical four-year college graduate who enrolls at age 18, graduates in four years, and borrows to cover the full published price of tuition, fees, textbooks, and supplies can expect to earn enough (relative to a high school graduate who begins working at age 18) to make a living by age 34. This accounts for both the direct cost of college and the opportunity cost of four years out of the workforce.
“The average college graduate stops spending on their investments by age 34, even if they have to borrow the entire cost of attendance.”
For students who receive the average amount of grant aid and pay the net price, the break-even age drops to 30 years. For those attending public two-year institutions, the payoff comes even sooner: Associate degree recipients who pay published prices break even by age 33, and those who pay pure price break even by age 31.
After that break-even point, the earnings profit increases every year. The longer college graduates stay in the workforce, the higher their overall return on investment.
College graduates face low unemployment rates
In 2025, the unemployment rate for workers age 25 and older with a bachelor’s degree was 2.6%, compared to 4.3% for high school graduates and 6.1% for those without a high school diploma. This gap has persisted over the past two decades, widening during recessions and narrowing during recoveries but never closing.
Employment rates tell the same story. Among adults aged 25 to 64, 84.1% of those with a bachelor’s degree or higher were employed in 2025, compared to 78.8% for associate degree holders, 74.7% for those with some college but no degree, and 70.3% for high school graduates.
The report notes one important caveat: About 34.4% of all college graduates in December 2025 were underemployed, meaning they worked in jobs that don’t typically require a college degree.
That rate has fluctuated between 30% and 35% since 1990, according to Federal Reserve Bank of New York data cited in the report. Yet, even in those roles, degree holders earn more than their non-degree holding colleagues.
How does it affect your finances
The financial benefits of a college degree go far beyond a paycheck. The report shows that degree holders are much less likely to live in poverty, less likely to rely on government aid programs, and more likely to have access to employer-sponsored benefits that protect household finances over time.
In 2024, only 4% of adults 25 and older with a bachelor’s degree lived in households in poverty, compared to 13% of high school graduates and 23% of those without a high school diploma. The gap is even more dramatic for single-parent households: 11% of bachelor’s degree holders lived in poverty, while 33% lived in households where a parent had only a high school diploma.
College graduates are also significantly less dependent on public aid. Only 3% of bachelor’s degree holders lived in households that received SNAP benefits in 2024, while only 14% of those with a high school diploma and 25% of those without a high school diploma lived in such households. Medicaid participation followed the same pattern: 10% for degree holders versus 29% for high school graduates.
On health insurance, 66% of full-time bachelor’s degree holders had employer-provided coverage in 2024, compared to 51% for high school graduates.
For retirement plans, the pattern was this: 45% of private sector workers with a bachelor’s degree were offered a retirement plan, compared to 37% for high school graduates. In the public sector, these figures increased to 73% and 65% respectively.
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