TENNESSEE’S RETURN ON COLLEGE INVESTMENT
Fifty-five years ago when a neighbor wanted to offer some career advice to recent college graduate Benjamin Braddock (Dustin Hoffman) in the movie “The Graduate,” he said this: Mr. McGuire: “I want to say one word to you. Just one word.” Benjamin: “Yes sir.”
Mr. McGuire: “Are you listening?”
Benjamin: “Yes, I am.”
Mr. McGuire: “Plastics.”
Benjamin: “Exactly how do you mean?”
Mr. McGuire: “There’s a great future in plastics. Think about it. …”
Today, in Tennessee, according to a new Beacon Center report, using U.S. Department of Education data, on the return on investment of degrees at Tennessee’s public universities, today’s Mr. McGuire is likely to mention engineering.
A degree in nuclear engineering from the University of Tennessee at Knoxville will land a graduate a median salary of $86,064, the largest from any degree at any public higher education institute in the state. Second is a degree in electrical, electronics and communications engineering from the University of Tennessee at Chattanooga, which offers a median salary of $81,300.
Before we delve further into the report, it’s important to understand — especially today — that college isn’t for everyone. But a post-secondary degree, certificate or training is likely to be necessary for more and more family wage jobs going forward. Whether that post-secondary work is done in a four-year private or public college, a two-year community college, a technical institute, an apprenticeship or on the job will be an important consideration for the one doing the work and the one paying for the work, whether that be the same person, parents or otherwise.
Nine of the top 10 median salaries shown in the report come from some type of engineering degree. As such, the degrees also are on the lower end of the scale of average debt owed as a percentage of earnings. Where some degrees offer more than 100% of debt as compared to earnings, the debt from the top nine engineering degrees are reported to be from 23% to 44% of earnings.
Of course, not all of us have the aptitude for engineering. So, if we’re a Hamilton County student or parent whose choices are limited to Chattanooga State Community College and UTC, it would behoove us to determine what other careers pay well.
Other than engineering fields at UTC, the next highest paying major at $64,016 is computer science, followed by registered nursing/nursing administration/nursing research/clinical nursing ($56,528), economics ($54,623), business administration/ management/operations ($47,445) and chemistry ($43,304).
Two-year degrees from Chattanooga State are less expensive, and several majors offer competitive pay. The five top earning majors from the Amnicola Highway school are registered nursing/nursing administration/nursing research/ clinical nursing ($58,534), engineering technology, general ($53,111), allied health diagnostic, intervention and treatment professions ($52,399), dental support services and allied professions ($42,676), and computer and information sciences, general ($40,809).
Note that, according to the report, a two-year degree in the nursing field from Chattanooga State pays slightly more than a four-year degree in the same field from UTC. And an examination of the report finds that a wide variety of degrees from two-year schools across the state pay more than many four-year degrees.
Although a student’s passion may lead them toward a particular field, the report offers a warning in the amount of debt as a percentage of earnings as to fields where the graduated student may struggle earning enough to make ends meet. The highest percentages in that category are majors of anthropology at Middle Tennessee State University (177.60%), agriculture, general, at Tennessee State University (151.86%), English language and literature, general, at the University of Tennessee at Martin (139.88%), international/global studies at MTSU (131.36%) and drama/theater arts and stagecraft at University of Memphis (126.89%).
The highest ratios at our local public schools are social sciences, other, at UTC (111.94%) and business administration, management and operations at Chattanooga State (83.69%).
Always wanted to be a teacher? The median salary for teachers coming out of schools across the state varies little, but the debt as a percentage of earnings does. At Tennessee Tech, the debt as a percentage of earnings is 44.77%, but it jumps to 97.80% at TSU.
The same is true with social work. The median earnings for students who go into the field vary little — though students from UTC make the most at $41,076 — but students range in their percentage of debt to earnings from UTK (56.91%) to TSU (95.29%).
Of course, as they used to say in automobile commercials, your mileage may vary. That is, depending on one’s circumstances, one may struggle at finding work in the engineering field or find great success in the teaching or social work fields. But it’s important for students and parents to go into the thought process about higher education with their eyes wide open and a plan.
The Beacon Center has made that job easier.