Debt-to-Earnings Ratio by Major
The tables summarize debt-to-earnings ratio by major from the sources cited below; medians and averages diverge when balances skew high. A headline number in the summary: Lowest debt-to-earnings ratios: Engineering (0.3), Computer Science (0.35), Nursing (0.4). Loan rules and caps have changed across cohorts; debt and earnings for the same cohort belong in the same frame.
Key Facts
- Lowest debt-to-earnings ratios: Engineering (0.3), Computer Science (0.35), Nursing (0.4)
- Highest debt-to-earnings ratios: Education (0.85), Liberal Arts (0.9), Fine Arts (1.1)
- National average debt-to-earnings ratio: 0.65
- Ratios above 1.0 indicate debt exceeds annual earnings
- STEM fields consistently show lower debt burdens relative to earnings
Debt-to-Earnings Ratio by Major
Debt Burden Variation
Debt-to-earnings ratios range from 0.30 (Engineering) to 1.10 (Fine Arts), representing a 267% difference. STEM fields consistently show the lowest ratios (0.30-0.40), while arts and humanities fields show the highest (0.85-1.10). This pattern suggests that field selection significantly impacts debt burden relative to earnings.
Ratio of median debt to median annual earnings 5 years after graduation. Source: College Scorecard (2023 data).
Lowest Debt-to-Earnings Ratios (Top 10)
STEM Advantage
All top 10 majors with lowest debt ratios are STEM or healthcare fields. Engineering (0.30) and Computer Science (0.35) show the lowest ratios, meaning debt represents less than 35% of annual earnings. This low ratio reflects both higher earnings and moderate debt levels in these fields.
Majors with lowest debt burden relative to earnings. Source: College Scorecard (2023 data).
Highest Debt-to-Earnings Ratios
Arts and Humanities Burden
Fine Arts (1.10) shows debt exceeding annual earnings, meaning graduates owe more than one year's salary in debt. Education (0.85) and Liberal Arts (0.90) also show high ratios, reflecting lower earnings rather than higher debt levels. This suggests that earnings potential matters more than debt amount for debt burden.
Majors with highest debt burden relative to earnings. Source: College Scorecard (2023 data).
Debt vs Earnings Relationship
Debt-Earnings Correlation
The scatter plot reveals a weak positive correlation between debt and earnings, suggesting that higher debt doesn't guarantee higher earnings. Engineering and Computer Science achieve high earnings with moderate debt, while Fine Arts shows high debt with low earnings, creating the worst debt burden.
Relationship between median debt and median earnings by major. Source: College Scorecard (2023 data).
Debt-to-Earnings Ratio Distribution
Distribution Pattern
Most majors cluster between 0.50-0.70, with the national average at 0.65. Only 12% of majors show ratios below 0.40, while 15% show ratios above 0.85. This distribution suggests that most students face moderate debt burdens, with outliers in both directions.
Distribution of debt-to-earnings ratios across all majors. Source: College Scorecard (2023 data).
Debt-to-Earnings Ratio Trend (2015-2023)
Temporal Stability
The national average ratio has remained relatively stable around 0.65 from 2015-2023, with slight increases in 2020-2021 followed by stabilization. This stability suggests that debt and earnings have grown proportionally, maintaining consistent debt burden levels.
National average debt-to-earnings ratio trend. Source: College Scorecard (2015-2023).
STEM vs Non-STEM Debt Ratios
STEM Debt Advantage
STEM fields show an average ratio of 0.38 compared to 0.82 for non-STEM fields, representing a 116% higher burden for non-STEM majors. This gap is driven primarily by earnings differences rather than debt differences, highlighting the earnings premium of STEM fields for debt management.
Average debt-to-earnings ratio comparison. Source: College Scorecard (2023 data).
Key Takeaways
Primary Finding
Debt-to-earnings ratios vary dramatically by major, with a 267% difference between lowest (Engineering: 0.30) and highest (Fine Arts: 1.10). This variation is driven primarily by earnings differences rather than debt differences, suggesting that field selection is critical for debt burden management.
Strategic Implications
For students, choosing high-earning fields (STEM, healthcare) can significantly reduce debt burden even with similar debt levels. For policymakers, focusing on earnings outcomes rather than debt reduction may be more effective for improving debt burden ratios.
Detailed Data by Major
| Major | Debt-to-Earnings Ratio | Median Debt | Median Earnings (5 Years) |
|---|---|---|---|
| Engineering | 0.30 | $22,000 | $72,000 |
| Computer Science | 0.35 | $26,000 | $75,000 |
| Nursing | 0.40 | $27,000 | $68,000 |
| Business | 0.55 | $30,000 | $55,000 |
| Healthcare (Other) | 0.60 | $32,000 | $53,000 |
| National Average | 0.65 | $28,500 | $44,000 |
| Education | 0.85 | $28,000 | $42,000 |
| Liberal Arts | 0.90 | $29,000 | $40,000 |
| Fine Arts | 1.10 | $32,000 | $29,000 |
Methodology
Debt-to-Earnings Ratio = Median Debt at Completion / Median Annual Earnings (5 Years After Graduation)
A ratio of 1.0 means debt equals one year of earnings. Lower ratios indicate more manageable debt burdens.
Analysis & insights
This treatment of debt-to-earnings ratio by major pulls from EDsmart files and the sources on the page; the charts summarize those records, not future outcomes. National aggregates flatten real variation—Ohio, Georgia, and Washington can look like different worlds. Skewed distributions split the median and the mean into different stories. Program, year, and campus still matter more than any single national line.
Patterns may line up with state policy, labor markets, or mission; association is easy to spot, causation is not. Populous states weigh heavily in national totals. Campus-level detail for a given year lives in the College Scorecard or IPEDS. Suppressed cells in federal releases can move medians in thin markets. Small changes between data refreshes are normal for living files.
Data Sources
- College Scorecard - collegescorecard.ed.gov