New Census Figures Show That College Is More Valuable Than Ever

Although many are skeptical of the value of a college education, in most cases, it still pays off to get a degree.

A recent analysis by the Census Bureau found that in 2024, the median household income for those with a bachelor’s degree was $132,700, which is more than twice the $58,410 median income of households headed by those with a high school diploma.

The Census Bureau also found that over the past twenty years, the income gap between those with college degrees and those with high school diplomas has widened.

In 2024, households headed by those with a high school diploma were earning almost exactly what they were in 2004 (a median $500 difference). In contrast, those with bachelor’s degrees in 2024 were earning 13.1% more than they were twenty years ago (a median $15,000 difference).

However, this runs contrary to many Americans’ views on the value of a college education, which may be impacted by the higher unemployment rate for recent college graduates and the perception that the cost of college has skyrocketed.

A 2024 Pew Survey found that nearly half (49%) of Americans thought having a college degree was less important today for securing a well-paying job than it was two decades ago.

What You Can Earn After College

Although some CEOs have suggested that college degrees may not be worth the cost, research has shown that college degrees generally pay off in the long run.

“[B]y comparison, the stock market has provided a long-term return of about 8 percent and bonds have returned around 4 percent,” the researchers wrote. However, the researchers do note that the return may vary based on a student’s major, with majors like business, engineering, and health science yielding a higher return.

And while the labor market is particularly unfavorable for recent college graduates right now (recent college graduates ages 22 to 27 have an unemployment rate of 4.8% compared to 2.7% for all college graduates), those with college degrees typically still fare better in the job market than those without one.

What You’ll Actually Pay for College

So why is college still a good investment even though the sticker price of attending many institutions has risen?

Since most students receive some type of grant aid or scholarships, the sticker price is often not reflective of how much students or parents actually pay. Many people pay significantly less than the sticker price. (The price that undergraduates pay, excluding grant aid, is referred to as the net price.)

In fact, college has generally gotten much cheaper over the past few years.

According to data from the College Board, the average net price of tuition and fees at public institutions has declined substantially over the past 12 years. The average net tuition and fees for full-time, in-state students at public universities was just $2,480 in 2024-2025, down from $4,340 in 2012-2013. At private four-year universities, the average net tuition and fees for full-time students was $16,510 in 2024-25, down from $19,330 in 2006-07.

“College is still worth it—at least, for most people,” Jaison Abel and Richard Deitz, researchers at the Federal Reserve Bank of New York, told Investopedia in an interview in August. “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, who tend to have higher unemployment and lower wages.”

The Bottom Line

Earning a college degree can result in a substantial pay off when it comes to income. In 2024, households headed by individuals with bachelor degrees had median incomes that were more than double those of households headed by someone with just a high school diploma.

As a result, having a college education can yield a substantial return over the long run. Researchers at the New York Federal Reserve put the median lifetime return of a college degree at more than 12%, which exceeds the median performance of the stock market.