The 10 Lowest-Paying College Majors Five Years Out: A Caution for Students and Investors

The decision to pursue a college major is a financial gamble. While some graduates enjoy six-figure salaries within a decade, others face stagnant wages that leave them questioning the value of their degrees. According to the latest Federal Reserve Bank of New York analysis and National Association of Colleges and Employers (NACE) data, certain majors deliver a stark return on investment (ROI) that lags far behind the national average. For students and investors alike, understanding these trends is critical to avoiding costly missteps. Below, we explore the 10 worst-paying college majors five years after graduation, paired with insights into their long-term implications.

The 10 Lowest-Paying Majors (Early-Career Median Salaries)

1. Early Childhood Education: $40,000
2. Mid-career stagnation at $49,000, with ROI below 6%.
3. Foreign Language Studies: $40,000
4. Limited demand in non-academic roles.
5. Fine Arts: $35,000–$38,000 (mid-career)
6. 47% of graduates work in unrelated fields.
7. Drama/Theater Arts: $35,000–$38,000 (mid-career)
8. High underemployment rates.
9. Theology/Religious Studies: $39,000 (estimated)
10. Concentrated in nonprofit or academic roles.
11. Liberal Arts/Humanities: $50,000 (entry-level)
12. ROI dips to 8% due to low mid-career growth.
13. Social Work: $45,000
14. Public-sector pay constraints.
15. Communications: $60,353 (2025 projections)
16. Declining salaries amid tech-driven media shifts.
17. Leisure and Hospitality Management: $48,000 (estimated)
18. Seasonal work and low unionization.
19. Philosophy: $47,000 (entry-level)
    • Generalist skills struggle to command premiums.

Why These Majors Lag

The disparity in earnings stems from structural demand issues:
- Overproduction of graduates: Majors like education and social work face saturated job markets, especially in public sectors with budget constraints.
- Skill applicability: Majors requiring specialized knowledge (e.g., engineering) often pay better because their skills are inelastic demand.
- Industry growth: The tech and healthcare sectors, which dominate high-paying roles, rarely hire in low-wage majors.

For investors, this data underscores the weak ROI of sectors tied to these fields. Consider:

Tech salaries have surged by 22%, while education sector pay grew just 6%, reflecting broader industry health.

The Financial Toll

The Federal Reserve’s analysis highlights that 25% of graduates fail to achieve a positive ROI, often due to low-earning majors. For example:
- A graduate in early childhood education, with $30,000 in debt, faces a median ROI of 2.6% after five years—far below the national average of 12.5%.
- Students in high-debt schools (e.g., private liberal arts colleges) may never recoup costs unless they pivot to lucrative fields.

Investors should note that student debt is now $1.8 trillion, with defaults rising among low-income borrowers. This creates risks for lenders and institutions overexposed to underperforming majors.

Strategic Takeaways

1. For Students:
2. Prioritize majors with strong demand and wage growth (e.g., engineering, computer science).

3. Use minors or certifications to bridge into high-paying industries.

4. For Investors:

5. Avoid overexposure to sectors dominated by low-wage majors (e.g., education stocks like AMAO or EDUC).
6. Seek opportunities in industries tied to STEM fields, where salaries and hiring remain robust.

Conclusion: A Wake-Up Call for the Education Economy

The data paints a clear picture: not all degrees are created equal. Five years post-graduation, the median salary for the class of 2020 sits at $80,000, but this masks a chasm between technical and liberal arts paths. Graduates in the 10 lowest-paying majors earn just 50–60% of this median, with mid-career stagnation worsening the gap.

For investors, this signals a need to favor industries where skills command premiums. Meanwhile, students must weigh their passion against cold economic realities. As the Federal Reserve warns, 25% of graduates may never see a positive return on their education—a risk too high to ignore.

In short, the ROI of a degree depends not just on its cost, but on its ability to unlock earning potential. For both students and investors, that’s a lesson worth heeding.

Engineering: 18% | Education: <6% | Computer Science: 15% | Fine Arts: 4%