Master’s degrees that lead to in-demand jobs, but offer low ROI
According to the Bureau of Labor Statistics, social work and mental health counseling jobs are projected to grow faster than the average rate for all occupations over the next 10 years. But because these careers often require advanced degrees but offer low pay, it can be difficult for graduates to achieve a positive return on investment.
Social work job openings are expected to increase by 74,000 positions annually from 2024 to 2034, making the field in high demand. But social workers earn a median income of just $61,330 per year, according to the BLS.
According to one study, the average cost-adjusted return for social work master’s programs is -2%. new research paper from American University’s Center for Postsecondary Education and Economic Research (PEER), which examined data on 121 advanced degrees from the Texas Education Research Center to determine the impact of certification on graduate earnings.
Similarly, professionals working in substance abuse, behavioral disorder, and mental health counseling professions earn average salaries of less than $60,000 per year, although they often require a master’s degree in psychology or a related field.
These roles are projected to have an average of 48,300 job openings per year over the next decade. BLS reports — a faster growth rate than any other job that typically requires a master’s degree — but the average return on investment for clinical psychology and psychology master’s programs comes in at -5% and -8%, respectively, according to PEER’s data.
Students interested in these low-ROI programs should “give a lot of weight” to available earnings data, says Robert Farrington, personal finance expert and founder of The College Investor.
“This is what your financial life will look like for 10 to 20 years after you complete the program,” he says. “If you spend a lot of money and [get into] There’s a lot of debt, when you get into that field, if you get into that field, you’re going to have to deal with the consequences of that, and that can make your 20s, 30s, and 40s very financially challenging.”
Real return on investment of a master’s degree in social work
Pursuing a career in social work or a related field doesn’t mean accepting a small salary, says Tiffany Llewellyn, director of Student Experience: Career Design and Preparation at New York University’s Silver School of Social Work.
Llewellyn says she encourages her students to consider doing social work for both “income and results.”
Social workers provide valuable services including psychotherapy, help families make difficult decisions in hospitals and schools, and guide organizations to ensure they can meet client needs. Council on Social Work Education.
“There’s passion, there’s hope [students] Protect our humanity. Llewellyn says the impact students want to have has a purpose that leads them to pursue a social work degree. “And that was accompanied by knowing what they deserved and being able to receive a fair wage and salary.”
He points out that although the national average income for social workers is relatively low, it can be much higher in places like New York City. In Hawaii, New Hampshire, Nevada, Rhode Island and the District of Columbia, the median income for social workers is over $100,000 per year, according to BLS data.
While students may have concerns about their earning potential, Llewellyn says those less familiar with the field may not realize the opportunities available to social work master’s graduates.
“We are a broad profession where social workers play roles in many different sectors, from hospitals to schools, private practices to technology companies,” she says. “I think the concept of social workers being underpaid is outdated, but it also depends on demographic realities and one’s perspective on who a social worker is and what they do.”
How to pay for your degree?
For those seeking advanced training in social work, psychology, or another field with historically low returns on investment, Farrington encourages careful financial planning to help protect yourself from burdensome debt after graduation.
This may include relying on federal loans that provide benefits such as income-driven repayment plans and forgiveness opportunities. Or, he says, it might mean minimizing undergraduate costs by starting at a state university.
“You may want to help the community and you do it because you have a passion for it, but it can also be very difficult to maintain that passion if you are also struggling with debt payments,” Farrington says.
It’s worth noting that graduate school is different from undergraduate programs because there aren’t as many federal aid programs, Farrington said. For example, Pell Grants are only available for undergraduate studies. As a result, many graduate students rely on loans to finance their education.
Starting July 1, 2026, graduate students will be limited in the amount of money they can withdraw. federal student loans. Those pursuing non-professional degrees, such as a master’s in social work, have a lower limit ($20,500 per year and $100,000 total) than students pursuing professional degrees such as medicine or law.
Social work master’s degree graduates have an average of $45,164 in student debt. Education Data Initiative. Master’s fees in social work programs can vary greatly—from around $15,000 to $60,000 per year.
In particular, many social workers and counselors can pursue careers in nonprofit services, which can help them qualify for Public Service Loan Forgiveness after 10 years of repayment, as long as they stick to federal loans and an income-driven repayment plan.
To help you determine how much student debt you can take on, Farrington offers this rule of thumb: “Never borrow more than you expect to earn in the first year after graduation.”
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