NEWS

Colleges and state universities choose this department, and the annual salary of graduates is higher than that of Stanford

Edgar Roa is a Clinical Science student at California State University, Dominguez Hills, who has overcome significant challenges in his journey to higher education. Raised by an immigrant mother without a high school diploma, his family faced frequent relocations across Southern California in search of affordable housing, often relying on social welfare. Yet, Roa is on track to graduate next spring with a medical degree, positioned to earn a median income of $126,318 five years post-graduation, all while managing an impressively low annual college cost of just $4,000. Thanks to a blend of low tuition, promising earning potential, GI Bill benefits, and Federal Pell Grants, Roa is set to graduate debt-free, which bodes well for his family’s future.

A recent report shows that CSU Dominguez Hills is one of California’s top campuses when it comes to delivering high returns for low-income students. Out of the 28 programs evaluated at the university, 23 boast salaries sufficient to recover educational costs in one year or less. For instance, the Registered Nursing program offers a median annual salary of $122,899, with business and teaching degrees following at $61,910 and $43,988, respectively.

In a climate of growing skepticism surrounding the value of higher education, this report provides clear data that contrasts the five-year incomes of graduates from almost 2,700 degree and certificate programs at 324 colleges and universities in California against those with only a high school diploma. This data lays bare net educational expenses and the recovery rates on these investments.

The report was commissioned by the non-profit College Futures Foundation in California and carried out by the HEA Group, which specializes in research and consulting related to college access, value, and economic mobility. The study surveyed around 260,000 graduates who received federal financial aid, using data from federal and educational institutions.

Michael Itzkowitz, president of the HEA Group and author of the report, emphasized the importance of informed decision-making: “Going to college can be one of the biggest investments anyone makes aside from a mortgage. Therefore, it’s crucial that we have all the data to ensure we’re making the most informed choices.”

Eloy Ortiz Oakley, president of the College Futures Foundation, pointed to increasing skepticism about higher education costs versus economic outcomes. “People’s primary reason for attending college is to enhance economic mobility, while cost is the most significant barrier,” Oakley explained. “This study is a critical first step in helping policymakers and educational leaders figure out what works and ensures that those who pursue higher education achieve robust financial outcomes.”

**Choosing the Right Major**

The findings suggest that the choice of major tends to outweigh the prestige of an institution. Community colleges and state universities often provide lucrative opportunities for low-income students without the burden of hefty student loans.

Among the nine schools noted for strong return on investment, over 50% of their students receive Pell Grants due to low income. Most of these institutions are state universities or UC Merced. Campuses include CSU Dominguez Hills, along with others like CSU Los Angeles, CSU Bakersfield, and CSU Northridge.

One remarkable example is Santa Ana College’s fire protection program. With a two-year net cost of only $2,994, graduates can earn a median salary of $114,446 five years down the line—nearly double that of Stanford University’s English majors, who make an annual salary of $56,399 with a four-year net cost of $43,404 after financial aid and scholarships.

The report’s “income premium” clearly illustrates the significant earnings advantage college graduates have over those with just a high school diploma. After five years, the average salary for high school graduates is a mere $26,073.

**Growth in Fire Technology Programs**

William Reardon, deputy director of the Fire Technology Program at Santa Ana College, highlighted the growing need for firefighters as retirements increase and climate change contributes to more frequent wildfires. Enrollment in fire technology and continuing education saw a 16% hike for the 2023-24 academic year, reaching 12,300 participants. Reardon noted that the program maintains a 100% acceptance rate, paving pathways for future firefighters, fire inspectors, and managers.

Notably, the highest-paying degree at UCLA is in computer and information science, where graduates earn a median annual salary of $218,770, recouping their four-year net educational costs of $62,548 in just four months. In contrast, graduates from UCLA’s drama and performing arts programs make only $28,993 annually—slightly above what someone with a high school diploma earns—ultimately taking 21 years to recover their degree expenses.

While prestigious institutions still hold considerable sway in return on investment within specific fields, the earnings prospects can vary wildly. For instance, Stanford University computer science graduates earn an impressive $247,797 annually, whereas graduates from CSU Bakersfield in the same field earn $83,688.

In business programs, UC Berkeley graduates average $145,003 five years after graduation—over double the $64,019 from California State University, Los Angeles.

However, Ortiz Oakley noted that many Californians, especially those from low-income backgrounds, struggle to gain admission to well-known colleges. The report shows that only 18.8% of Stanford students receive Pell Grants, while UC Berkeley’s is at 27.1%, and CSU Los Angeles stands at a substantial 66.2%.

“We found that there are many viable options for students beyond the name-brand schools, which can create a misleading narrative based on brand value,” Ortiz Oakley stated. “The most selective California campuses need to broaden their applicant pools and enroll more low-income students. Public universities should aim to provide opportunities for California’s lowest-income residents.”

**Programs Falling Short**

Despite nearly nine out of ten programs in California allowing graduates to recover educational expenses within five years, 112 programs still fail to yield salaries that surpass those of high school graduates even after degree or certificate completion. Most of these underperforming programs are linked to for-profit institutions—often labeled ‘diploma mills’—offering cosmetology courses. Graduates from Los Angeles Trade-Technical College in cosmetology earn only $13,200, which is half of the median wage for high school graduates.

Ortiz Oakley emphasized the need for educational leaders to enhance the performance of these struggling programs, recommending the inclusion of more apprenticeship training rather than steering students toward pricier institutions. “Students must not only research the schools they apply to but also meticulously investigate the fields they are considering,” Itzkowitz added.

**Bright Future in Key Fields**

Fields such as computer science, engineering, and healthcare provide the highest return on investment. Registered nursing, in particular, is in high demand, with many graduates from two-year community college programs earning six-figure salaries within five years. The ongoing shortage of nursing professionals continues to drive salary increases, with traveling nurses making upwards of $3,000 or more per week on 13-week contracts.

Despite this demand, the number of nursing degrees offered often falls short of the applicant pool. Quynh Mayer, an associate professor in nursing at Santa Ana College, pointed out that around 450 to 600 applications are submitted each semester for approximately 40 available seats. A major bottleneck arises from hospitals’ limitations on intern placements for practical training.

In contrast, Roa’s Clinical Science program at CSU Dominguez Hills has a more accessible enrollment pathway. Payman Nasr, the program’s associate professor and director, mentioned that about 90% of applicants are accepted. The program equips students to analyze blood, spinal fluid, and other tests to diagnose various conditions. After finishing coursework, students engage in a 52-week internship and must pass a national exam to become clinical laboratory scientists.

Nasr reports that nearly half of the students in the program are first-generation college attendees from low-income backgrounds, which is a point of pride for the university.

Roa himself couldn’t afford to attend college directly after high school without incurring debt, leading him to join the Navy to utilize GI Bill benefits for his education. In evaluating his post-military career options, he recognized the healthcare field offered both substantial job opportunities and attractive salaries.

Ultimately, Roa opted for CSU Dominguez Hills over UC Irvine, where he had been accepted into their chemistry program. Despite UC Irvine’s higher prestige, Roa found that CSU Dominguez Hills offered more targeted and practical training specific to clinical laboratory science.

His choice could yield a more lucrative result; according to the report, five years after graduation, chemistry majors from UC Irvine earn around $72,001, while graduates from Roa’s program at CSU Dominguez Hills can expect earnings of $126,318.