New data shows UC degrees deliver strong earnings and economic mobility amid rapidly changing economy

The University of California released new data today that shows a UC degree remains one of the best investments California students and families can make. The data highlights UC's affordability, return on investment and strong earnings for graduates. The findings come amid ongoing conversations about the value of higher education in an era defined by artificial intelligence, rising living costs and a rapidly evolving job market.

The newly released data reveals that UC graduates carry significantly less student debt than their peers, with average debt levels for an in-state student declining $11,400 over the past decade - giving UC graduates greater financial flexibility as they enter the job market. Within seven years of graduation, median earnings among UC degree-holders exceed the median for California bachelor's degree recipients, a combination that makes a UC education one of the strongest financial investments a student can make.

"Many Americans are questioning the value of a college degree. We have a clear answer: A UC degree is not only worth it - it changes lives and entire communities for the better," said UC President James B. Milliken. "This recent data affirms our efforts to expand affordability and accessibility to students from across California, demonstrating how a UC education is both attainable and transformative."

A University of California analysis reveals that UC graduates recoup their educational investment in roughly six years after enrolling at the University. In addition, most Pell Grant graduates surpass their families' earnings within three years - two years faster than reported in a 2021 analysis, reinforcing how UC drives social and economic mobility.

In addition to degree affordability and fast return on investment, data released last year also shows that UC graduates are more likely to find good-paying jobs, and UC degrees fuel their high-growth careers and economic mobility. The data, which looks at 25 years of career outcomes, shows that UC degrees lead to well-paid jobs in public service and at top companies across technology, entertainment, biotechnology, finance, and consulting sectors, including Apple, Disney, Genentech, Google, Deloitte, and many others.

Over a 20-year period, UC bachelor's degree recipients will earn more than $2 million in cumulative earnings, $1.23 million more than high school graduates and $439,000 more than all California bachelor's degree recipients. Between two and 10 years, earnings double overall and across most disciplines.

"As costs are rising nationwide and college graduates enter one of the most competitive job markets in recent history, UC's commitment to making a college education more affordable and accessible has never been more important," said outgoing UC Board of Regents Chair Janet Reilly. "This data shows that a UC degree not only remains within reach for California families, but continues to give graduates a measurable, lasting advantage. As the economy continues to evolve, UC is demonstrating that access, affordability and excellence are not mutually exclusive."

The new data comes at a pivotal moment for higher education. The rapid advancement of artificial intelligence and automation is reshaping the workforce, prompting many students and families to scrutinize the value of a traditional college degree. Meanwhile, national concerns about ballooning student debt and a tightening entry-level job market have made affordability and career outcomes a top priority for prospective students.

UC is responding to these challenges by building stronger pathways between the classroom and the workforce. Across the University, students are gaining hands-on experience through research, internships, service learning, and employer partnerships. These opportunities, combined with UC's world-class research enterprise and deep partnerships across the nation, continue to position UC graduates for success.

KEY FINDINGS AT A GLANCE:

• Affordability: Over 60 percent of UC undergraduates leave the University with no student debt. For those with debt, average debt levels for in-state students have declined by $11,400, from $28,700 in 2013 to $17,300 in 2024. UC has also implemented several measures to make a degree more affordable, including the Tuition Stability Plan, which locks in a student's tuition and mandatory systemwide charges at their freshman-year rate for the duration of their undergraduate education, giving families the ability to accurately plan education costs from enrollment to graduation.

• Higher earnings: Just seven years after graduation, UC alumni earnings in California reach a median annual salary of $86,000, higher than the median earnings of all undergraduate degree-holders in the state. Within 12 years, median earnings for UC undergraduate degree-holders rise to $113,000, exceeding the median of graduate degree-holders in California.

• Return on investment: UC graduates break even on their educational investment six years after enrolling.

• Economic mobility: More than a third of UC undergraduates are low-income students who, through their UC degree, achieve significant economic mobility after graduation. Most Pell Grant graduates and first-generation graduates surpass their family earnings within three and four years of graduation respectively, compared to five and seven years for prior graduates as reported in the 2021 analysis.

To access all of UC's updated data on the economic benefits of a UC degree, visit: https://www.ucop.edu/institutional-research-academic-planning/_files/updated-evidence-on-the-economic-benefits-of-a-uc-degree.pdf

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