As captioned by Entrepreneurng report, investing in a college education makes sense. Because a college education is essentially required in today’s labor market, you spend money on tuition. Furthermore, there’s a very likely probability that you’ll have to pay for all or a portion of your education regardless of the path you choose private university or public college, local or out-of-state, 2-year or 4-year program, etc.
This implies that you’ll be dragging along a sizable amount of student loan debt with you when you graduate from college and enter the workforce.
Read Also: The TOP 5 FINANCIAL INSIGHTS TO SAVE YOUR Money: 2023
If attending college were purely an investment, you would seek the degree that offered the most return on your money. However, this is not how the real-world functions. We all have special talents.
Our talents and passions make us individually uniquely qualified for some occupations while slightly less qualified for others. That’s advantageous since it turns out that a diverse group of individuals performing a variety of tasks is necessary for a society to function.
However, there is a substantial difference between the earning potential of some degrees and that of other degrees. Similar to how some degrees are more expensive to earn than others.
According to the debt-to-income ratio, the lowest-paying degrees
Student loan refinancing firm Credible provides services. They were able to compile a list of applicants’ student loan debt-to-income ratios, sorted by degrees, using data from over 11,000 loan applications. The five degrees with the highest debt-to-income ratios for student loans are as follows:
1. 14.62% for veterinary science
2. 13.23% in psychology for undergrads
3. GraduateLaw: 12.67%
4. Undergraduate education: 12.06 percent
5. History: 11.82%
As a result, if you attended veterinary school, you should anticipate that your student loan repayments would account for roughly 15% of your income. Other debts and expenses are not taken into account.
Read Also: Blogging: How To Make Money From Content Writing
Most Lucrative Degrees According To debt-to-income Ratio
The degrees with the best debt-to-income ratios, however, are as follows:
1. Undergraduate Economics: 6.70%
2. Nutrition: 6.88%
3. Engineering 7.73% (undergraduate)
4. Accounting (graduate): 7.91%
5. Graduates in medicine: 8.78%
Conclusion
A career may still be worthwhile to pursue even when it has a high student debt to future income ratio in a particular field of study. We require educators! Vets are needed! Just bear in mind that certain occupations will probably put you in a more precarious financial situation, necessitating the need for you to be even more frugal with your spending.
