We all know that getting into a well-branded university doesn’t necessarily guarantee you a stable job. And what about the student loan that comes after? Sounds like a lot to think about, but that’s not all to it.
Interest and passion aside, how much does your actual choice of major affect your return on investment?
While a top-class university degree holder can potentially take 100-200% more salary than a secondary qualification holder, you might be shocked at the employment statistics of some highly-sought after degrees.
The Winners
A study done by ValuePenguin compared the annual tuition fees of different majors at National University of Singapore (NUS) with the students’ annual starting salaries.
With the median at 3.79, the majors that emerged as winners are all expectedly (or unexpectedly) from the field of computing. With the up and coming Artificial Intelligence (AI) advancements and technology startups in the world, they definitely factored into the demand of this line of work.
In an interview with The Straits Times, ValuePenguin senior vice-president mentioned, “Tech companies such as Facebook, Google and Twitter can offer six-figure annual salaries to new graduates.”
We’re definitely expecting an upwards trend for these courses with the appalling demand and avenue one could be in reach of. Perhaps this is the last of ‘passion beats money’, as we see more flocking to the computing field. Can’t say for sure if all are passionate about computing but monetary gains? It sure is a good enough reason.
The Losers
While you’ll be astonished at the majors topping this list, you’ll be equally shocked to see the ones that are at the bottom of the list…
Your eyes are most certainly not playing tricks on you as dental surgery and medicine emerged with the lowest Return On Investment (ROI) on tuition during their first years.
Fret not for the people in these fields as these degrees tend to have a lower ROI due to their extremely high tuition fees.
At about $27,400 per year, tuition fees for medicine is significantly higher as compared to a degree in computing which costs only $8,150 annually.
TL;DR: Due to the higher tuition fees of medicine and similar courses, students in these fields would have to make significantly more to break even and to reach a similar ROI as a computing student.
Losers? Not Really
Though the investment for a medical degree is high, a doctor’s remuneration is bound to increase over the course of his or her career.
ValuePenguin also mentioned in their studies, “However, this figure may under-represent the true economics of a medical degree given the stability of their income stream in the long run.”
After all, helping to save lives does sound like a pretty daunting but deservingly-rewarding profession.
Hard Work Doesn’t Disappoint
The same study by ValuePenguin shows that interestingly, earning an honors degree does impact monthly drawn income. On an average, the study shows a 27% difference as compared to a normal degree from the same major.
This stands particularly true for those pursuing a bachelor of arts or bachelor of business administration.
At the end of the day, do a reality check and don’t expect to become a millionaire right away upon graduation. Patience is a virtue and of course do look out for the opportune moment to shine by jumping on the right band wagon!
