College Debt by Major After Graduation: How Much You'll Owe

College debt is a reality for many graduates, but did you know that the amount you owe can vary significantly depending on your major? For example, engineering majors can expect to graduate with an average debt of $53,000.

Choosing a major with a high earning potential can help offset the cost of tuition, but it's not the only factor at play. Some majors, like those in the arts, may have lower earning potential, but also lower tuition costs. For instance, fine arts majors graduate with an average debt of $32,000.

The cost of attending a public versus private college also plays a significant role in determining your debt load. On average, public college graduates owe $28,000, while private college graduates owe $39,000.

College debt by major can be a significant concern for students. The median debt of graduates varies widely depending on the major, with some majors resulting in much higher debt levels than others.

Behavioral sciences majors, for example, have a median debt of $42,822, while culinary arts and related services majors have a median debt of $28,586. These numbers can be alarming for students who may not have considered the financial implications of their major choice.

Here are some of the highest and lowest median debt levels by major:

It's worth noting that some majors, such as engineering and computer science, may have higher earning potential after graduation, which could help offset the debt. However, it's essential for students to carefully consider the potential debt implications of their major choice and plan accordingly.

Pursuing a Business Administration degree can be a costly endeavor, with tuition ranging from $41,000 to a whopping $170,000 for MBA students.

The financial burden of a Business Administration degree is significant, with 54% of MBA graduates taking out loans to cover the costs.

Business Administration graduates can expect to take home a decent salary, but the debt they incur during school can be a major obstacle to achieving financial stability.

In fact, some Business Administration graduates may find themselves with a six-figure debt, with General Sales graduates facing an average debt of $104,650 and Real Estate Development graduates facing an average debt of $97,023.

Insurance graduates, on the other hand, tend to have lower debt levels, with an average debt of $43,408.

The high cost of a Business Administration degree is a major concern for many students, and it's essential to carefully consider the financial implications before making a decision.

Pell Grant recipients are more likely to graduate with student loan debt than non-recipients.

Among Associate's degree recipients, students who have received a Pell Grant are twice as likely to graduate with student loan debt.

The average debt at graduation for Associate's degree recipients who received a Pell Grant is $5,676 greater than those who did not.

This is a significant difference, and one that can have long-term financial implications.

Among Bachelor's degree recipients, students who have received a Pell Grant are two-thirds more likely to graduate with student loan debt.

The average debt at graduation for Bachelor's degree recipients who received a Pell Grant is $4,466 greater than those who did not.

The median student loan debt for graduates is a more accurate representation of debt levels than the average, as it's the midpoint of the data. In other words, half of graduates have more debt, and half have less.

According to a report by the Education Data Initiative, the top 10 bachelor's degrees ranked by median debt of graduates are: behavioral sciences ($42,822), religious education ($31,984), culinary arts and related services ($28,586), human services ($28,586), education ($28,001), clinical, counseling, and applied psychology ($27,439), literature ($26,987), natural sciences ($26,912), physical sciences ($26,635), and music ($26,600).

These figures are based on 2022 information, and it's essential to note that the availability of scholarships significantly affects student debt levels. For instance, 17% of STEM (science, technology, engineering, and mathematics) students receive scholarships, compared to 12% of non-STEM majors.

Here's a breakdown of the top 5 majors with the highest median debt:

Keep in mind that these figures are medians, not averages, and there's a wide range of debt levels within each major. Additionally, these figures don't account for other forms of financial aid or debt, such as parent loans or credit card debt.

Attending an expensive college can be a costly decision, literally. High net price colleges drive student loan debt at graduation, with a $3,500 increase in student loan debt for every $10,000 increase in the net price.

This means that if a college has a high net price, students are likely to graduate with more debt. The failure of government grants to keep pace with increases in college costs shifts the burden of paying for college from the government to the families.

Family income has been flat since the late 1990s, so families are forced to either shift enrollment to lower-cost colleges or to borrow more. Higher college costs lead to higher student loan debt, whether it's through federal loans, private student loans, or the cost of attendance.

College debt can be overwhelming, but understanding the types can help you navigate the situation.

Federal student loans are a common type of college debt, accounting for 92% of all student loans in the US.

Private student loans are another type, often used by students who don't qualify for federal loans. They can have variable interest rates and fees.

Defaulted loans occur when borrowers fail to make payments, resulting in negative credit reporting and wage garnishment.

Income-driven repayment plans can help borrowers with high debt-to-income ratios, capping monthly payments at 10% of discretionary income.

Perkins loans are a type of federal loan with a 5% interest rate, available to undergraduate and graduate students with exceptional financial need.

College debt can have a significant impact on your financial stability and overall well-being after graduation. The average student debt load for the class of 2020 was $31,300.

Many students struggle to make payments, with 70% of borrowers reporting difficulty paying their bills on time. This can lead to financial stress, anxiety, and even depression.

For example, a survey found that 40% of graduates with debt reported feeling anxious or depressed about their financial situation. This is not surprising, given the average monthly payment of $393.

The impact of college debt can also affect career choices. Some graduates may choose to pursue lower-paying jobs or delay starting their careers to avoid taking on debt. In fact, 25% of graduates with debt reported considering a lower-paying job to avoid debt.

Ultimately, understanding the impact of college debt is crucial for making informed decisions about your future.

The average student loan repayment term is a staggering 16 years, as of 2018. This means borrowers can expect to make monthly payments for nearly two decades.

Borrowers have a tendency to choose the repayment plan with the lowest monthly payment, which corresponds to the longest repayment term, as it "saves" money in their monthly budget. This can lead to a longer repayment period than necessary.

The average monthly student loan payment in 2016 was $393, with a median payment of $222. It's worth noting that individuals who didn't complete their degree or attended a for-profit institution are more likely to fall behind on their student loan payments.

Monthly payment can be a significant burden, with the average monthly student loan payment in 2016 being $393.

The median payment was a more manageable $222, but even this amount can be a strain on many budgets.

Individuals who attended a for-profit institution are disproportionately likely to fall behind on their student loan payments.

This highlights the importance of carefully considering the financial implications of attending a for-profit school.

The Federal Reserve Board's Report on the Economic Well-Being of U.S. Households also found that individuals who did not complete their degree are more likely to struggle with student loan payments.

This emphasizes the need to think carefully about whether pursuing a degree is the right decision for each individual.

The average student loan repayment term is a staggering 16 years, as of December 31, 2018. This means that borrowers can expect to be paying off their loans for nearly two decades.

The Federal Direct Loan Portfolio by Repayment Plan spreadsheet reveals that the average repayment term is actually 15.5 years when weighted by the number of borrowers. This assumes a maximum of 25 years in extended and graduated repayment plans.

Borrowers have a tendency to choose the repayment plan with the lowest monthly payment, which corresponds to the longest repayment term. This is because it "saves" money in their monthly budget, but it also means they'll be paying off their loans for longer.

If borrowers assume a maximum of 30 years instead, which would require consolidating the loans, the average repayment term is 15.9 years when weighted by the number of borrowers. This shows just how much of a difference a few extra years can make.

The average repayment term has been increasing over time, as average debt has increased. Five years ago, the average repayment term was 14.4 years, a full year shorter than it is today.

High net price colleges drive student loan debt at graduation, with a $3,500 increase in debt for every $10,000 increase in net price.

The failure of government grants to keep pace with college costs has shifted the burden of paying for college from the government to families.

Family income has been flat since the late 1990s, forcing families to either shift enrollment to lower-cost colleges or borrow more.

Higher college costs lead to higher student loan debt, with a strong correlation between net price and debt at graduation.

There is a direct relationship between tuition and the cost of attendance, with higher costs resulting in higher debt.

Earning a doctoral degree can be a significant financial investment, with average debt ranging from $42,879 for students in biology to $310,330 for those in pharmacy and pharmaceutical sciences.

The high debt associated with doctoral degrees in fields like pharmacy and pharmaceutical sciences can be overwhelming, but it's essential to consider the potential earning potential in these fields.

Students who pursue a doctoral degree in public administration can expect to graduate with an average debt of $146,194, which is still a substantial amount but lower than some other fields.

Biology and education doctoral degree graduates have relatively lower debt levels, with averages of $42,879 and $82,131 respectively.

It's worth noting that debt levels can vary significantly depending on the specific field of study.

The return on investment for your college degree can be a tough pill to swallow, especially when it comes to student loan debt. The average student loan debt balance is a staggering $37,853 per borrower, and it can easily climb to $40,681 when private loan debt is included.

The amount you borrow can vary significantly depending on your major and the degree required to pursue your chosen profession. For example, the average student loan debt for a borrower with a bachelor's degree is about $30,500.

If you're considering a graduate degree, be prepared for even higher costs - the average student loan debt for a graduate degree is $65,667, which can balloon to $84,203 in total student loan debt. And if you're thinking about a degree in law or medicine, your debt could be in the hundreds of thousands.

The type of degree you choose can also impact your debt. For instance, the average student loan debt for a law degree is a whopping $243,483, while a medical degree can leave you with a debt of $296,500.