Gen Z Thinks They'll Earn Back Their College Degree Cost Quickly -- Boomers Say 'Good Luck With That'
The average tuition for the 2025-2026 school year ranged from $11,950 for in-state students attending a four-year public school to $45,000 for a four-year private school, according to CollegeBoard’s Trends in College Pricing 2025 report. Multiply that by four years and the total cost is $47,800 to $180,000, less grants and scholarships — money Gen Z expects students to earn back quickly once they start working.
Their baby boomer parents and grandparents aren’t so sure, according to a recent survey from MoneyLion. The survey revealed that younger Gen Zers are about 3.5 times more likely than boomers to think that degrees pay for themselves in five years or less, and they’re almost 50% less likely to believe a degree never truly gets earned back.
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As it turns out, both generations might be correct.
What the Research Reveals
Per an analysis by the Foundation for Research on Equal Opportunity (FREOPP), how long it takes for a degree to pay for itself, if it ever does, depends on the program. While the median return on a bachelor’s degree is $160,000, high-earning fields like engineering and nursing have payoffs of $500,000 or more. However, fine arts, English and psychology majors might never recoup their costs.
Salary data from The National Association of Colleges and Employers shows a similar divide among starting salaries. That group’s Winter 2026 Salary Survey projected that starting salaries for computer science grads, the highest-earning of any major, would hit $81,535. Communications majors, on the other hand, are expected to earn just $63,767. But Cord Harper, CEO at Endeavor Agency, an executive career-coaching firm, encouraged students to look beyond pay.
“A high salary sometimes comes with an unrealistic workload, extremely high turnover, limited opportunity for advancement, or expectations that aren't obvious during the interview process,” he said. “Your first salary matters, but your trajectory matters more, in my opinion.”
When Will Your Degree Pay Off?
Free resources can help you determine if and how quickly you might earn back your education costs. College Scorecard, from the U.S. Department of Education, has a broad range of information about schools, including average annual costs and median earnings. Combine those findings with salary data from the U.S. Bureau of Labor Statistics Occupational Outlook Handbook, which also has helpful information about job qualifications, working conditions and which industries people with a particular position work in.
Next, determine your likely career trajectory over the first five or 10 years, and compare it with what you’d likely earn without the degree.
“Otherwise, you're giving the degree credit for income you might have earned anyway,” Harper said.
Remember to factor in the possibility of some bumps along the way.
“You may graduate into a recession. You may need six months to find the right job. You may take a job that doesn't require your degree. You may change careers,” Harper explained.
All of these factors can lengthen the time it takes to recoup education costs.
How To Make Your Degree Pay Off Faster
A strategic approach to selecting a degree program and school, followed by an effective job hunt, will minimize how long it takes for your degree to pay off — and help ensure that it does.
Harper recommended choosing a career before choosing a degree. He said, “I'm not saying a 17-year-old needs to have their entire life mapped out. But they should have some idea of what careers they're considering and what those careers pay.”
Next, look for ways to get experience in your field. For example, internships, co-ops and part-time work can provide valuable experience along with networking opportunities that could help you with your job search.
When it comes to finding a job, don’t wait until graduation. In addition to creating a resume and getting on LinkedIn, Harper recommended that students “learn how to network. Learn how to talk to employers. Learn how to identify opportunities that aren't publicly posted. Learn how to interview and communicate your value.”
Start Planning Now
Your college costs versus salary calculations can give you a theoretical answer about how long it’ll take to earn back your degree costs, Harper said, but talking with people actually doing the work can give you a much better practical answer about your earning prospects and career trajectory.
“That's why I encourage students to start these conversations before graduation, not after,” he said. “Career planning shouldn't begin when the diploma is in your hand.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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