Is a Bachelor’s Degree Worth it? Comparing Degree Types

By Corey Buhay | Published on February 23, 2026

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When you start to think about going to college, you may quickly discover that a lot of people have strong opinions about what you should do. Some relatives might tell you a bachelor’s degree isn’t worth it and that you’d be better off pursuing a trade or vocational degree. Others might say the opposite: that a four-year degree isn’t enough in today’s market and that you’ll need at least a master’s degree to succeed.

So, what’s the truth? Is a bachelor’s degree worth it? How does it compare to other degree types in terms of job prospects and lifetime earnings? Use this guide to help you weigh the options and choose a degree path that’s right for you.

What is a bachelor’s degree?

A bachelor’s is the common choice of college degree among high school graduates pursuing higher education. Right now, nearly a quarter of all Americans over the age of 25 have a bachelor’s degree, while another 14% have a graduate or professional degree on top of that, according to a recent report by the Lumina Foundation.

Bachelor’s degrees are required for entry-level positions in many industries. They’re also a necessary prerequisite for most graduate and professional degree programs.

To get a bachelor’s degree, you’ll typically have to complete a four-year course of study at an accredited college or university. (That’s if you’re a full-time student; it can take longer if you attend part-time.) A bachelor’s program involves a set progression of courses in your chosen major, as well as any required general electives. You’ll also have to maintain a certain GPA to graduate.

If you complete the program, you’ll leave school with specific expertise in at least one subject area, as well as general knowledge about a variety of other topics. Depending on your degree program, you may also leave with a guarantee of a fairly predictable salary.

Because four-year programs involve so much foundational coursework—and focus heavily on problem-solving and critical thinking skills—they also tend to leave students with many career options. After all, it can be easier to pivot from one field to another when you have a well-rounded education and a diverse skill set.

Bachelor’s degree vs. high school diploma

Completing a bachelor’s degree program can have major advantages for your career satisfaction, lifetime earnings, and overall happiness.

According to a report from the Federal Reserve Bank of St. Louis, the unemployment rate for college graduates is nearly half that of workers with only a high school diploma. Bachelor’s degree holders also make more money than high school grads. In 2023, workers between the ages of 22 and 27 with a bachelor’s made $24,000 more annually than those without any post-secondary education. And that gap widens for certain fields. Folks with degrees in information technology, cybersecurity, computer science, and engineering often reach six-figure salaries within their first decade of work.

Bachelor’s degree holders also benefit from more job security and stability — even during periods of economic downturn. According to the Bureau of Labor Statistics, nine of the ten top fastest-growing occupations are in fields that typically require a bachelor’s degree or higher. So, if you want to have job opportunities in a growing field, a bachelor’s could be the way to go.

Plus, the value of a bachelor’s degree goes beyond just earnings. College education is also correlated with personal health and happiness. According to the Association of Public and Land Grant Universities, Americans with at least some college education tend to live seven years longer than those who don’t. They also tend to have more stable family lives: the Pew Research Center reports that Americans with a four-year college degree are more likely to be satisfied with their careers, and college-educated Americans have around a 75% chance of staying married for 20 years or longer. It’s important to note that these studies prove correlation, not causation. However, they do suggest that higher earnings and better job security could influence workers’ confidence and sense of worth.

Bachelor’s degree vs. associate’s degree

An associate’s degree is a two-year degree program available through many community colleges, junior colleges, and online universities. Associate’s degrees tend to be less expensive than bachelor’s degrees and convey expertise in one very specific subject area. They can be ideal for students who are short on time, can’t afford a four-year degree, or who have a particular career path in mind.

On average, associate’s degree holders graduate with less student debt than bachelor’s degree holders. However, they also tend to have a lower lifetime earning potential. According to data from the Bureau of Labor Statistics, the median annual salary for someone with an associate’s degree is about $55,000. Meanwhile, workers with a bachelor’s make about $78,000 per year.

Of course, your field of study can also have a big impact on your earnings. A Georgetown study found that associate’s degree holders in math, technology, and computer science-related fields made as much as some graduates with four-year degrees. However, bachelor’s degree holders tend to report having a stronger sense of purpose and satisfaction.

Bachelor’s degree vs. trade school diploma

Trade schools can help you gain hard skills, enter the workforce faster, and graduate with even less student loan debt than bachelor’s or associate’s degrees.

According to the College Board, the average sticker price of a four-year degree at a public, nonprofit, in-state college or university is about $44,000. That’s more than most college students can afford without at least some financial aid. A two-year trade-school program, on the other hand, can cost as little as $5,000. Better yet, you can have that certificate in hand in just 18 to 24 months — which means far less opportunity cost in having to take time off work for school.

According to data from employment service ZipRecruiter, graduates from trade school certificate programs tend to earn an average salary of $67,000 per year, depending on their career path. Those who end up running their own firms — independent plumbers or electricians, for example — can go on to earn six figures. However, this isn’t necessarily the norm. According to the aforementioned Bureau of Labor Statistics report, the median salary for students with some post-secondary education but no degree is closer to $52,000 per year. Get a bachelor’s degree, and that number rises to $78,000.

According to a recent Angi survey, trade school certificate-holders may be more likely than other high-school grads to experience a high sense of job satisfaction. Trade school grads also tend to experience more job security—especially as AI threatens to take over more white-collar jobs. However, they may be less likely than bachelor’s degree holders to have the kind of good working conditions, stability, and other benefits that contribute to overall happiness and job satisfaction over the course of a lifetime.

Beyond the bachelor’s degree: Graduate, professional, and doctoral degrees

Another reason to get a bachelor’s degree is that it’s a necessary prerequisite for most graduate, professional, and doctoral degrees. These kinds of advanced degrees are becoming increasingly valuable in a variety of industries.

It’s part of a trend some experts call “ credential inflation.” As students graduate high school and enroll in college at higher rates, more and more college-educated students are hitting the workforce. That means an undergraduate degree alone isn’t always enough to stand out. These days, hiring managers increasingly have to choose new benchmarks to help them screen candidates. A job applicant with a master’s in business administration may be more competitive in a flooded job market than someone with just a BA in business.

But that’s not the only reason to pursue an advanced degree. According to data from the U.S. Bureau of Labor Statistics (BLS), graduate degrees tend to provide an excellent return on investment. On average, a worker with a master’s degree makes nearly $13,000 more per year than someone with only an undergraduate degree. Workers with doctoral or professional degrees make around $10,000 more per year on top of that.

Job retention also tends to go up with education level: According to the Public Policy Institute of California, workers with higher levels of education are less likely to be laid off or have trouble finding work, even during a recession.

Finally, an advanced degree can lead to higher job satisfaction. In many industries, a master’s or doctorate degree can help you land more senior roles more quickly. As a result, you’ll likely have more interesting work and higher lifetime earnings. According to reporting by Inside Higher Education, more years of education are associated with better health, higher civic engagement, and improved relationships. And those factors are correlated with higher levels of happiness.

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Are you exploring ways to fund your college education? Consider using Earnest to help you cover college costs and start making strides toward your career goals. We offer student loans¹ with flexible, competitive interest rates, and repayment plans that you can customize to fit your needs. See how much you could get approved for by checking your eligibility with Earnest today.

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About the Author

Corey Buhay

Corey Buhay is a writer and editor based in Boulder, Colorado. She’s passionate about literature, the outdoors, and doing her taxes by hand. She has been writing about student loans and personal finance for Earnest since 2019. You’ll find her work in Outside Magazine, Backpacker Magazine, Smithsonian, and The Denver Post.