2027 Return on Investment (ROI) of a Humanities Degree Program

Imed Bouchrika, PhD

by Imed Bouchrika, PhD

Co-Founder and Chief Data Scientist

How Is ROI Calculated for a Humanities Degree Program?

Return on investment (ROI) in higher education evaluates the financial benefits a student gains relative to the cost and time spent earning a degree. It serves as a valuable tool for prospective students to compare the value of a humanities degree against its expenses and duration. To better understand calculating ROI for humanities degree programs, consider these key factors:

  • Tuition and fees: This includes all direct educational expenses such as tuition, books, and other costs required to complete the program, which contribute significantly to the initial financial investment.
  • Opportunity cost: Represents the income a student sacrifices by attending school full-time instead of working, which varies based on the program length and can greatly impact overall ROI.
  • Time to completion: The duration needed to earn the degree affects both ongoing costs and lost earnings. Longer programs generally result in higher opportunity costs, influencing the ROI calculation.
  • Post-graduation salary outcomes: Average salaries for graduates after completing the program are critical for estimating the financial returns of a humanities degree versus its cost.
  • Long-term earning potential: Considers future salary growth and career advancement opportunities related to a humanities degree, offering insight into the sustainable financial benefits over a working lifetime.

Evaluating humanities degree program cost versus earnings is essential for a thorough understanding of potential benefits. Some students may also compare their options with accredited online MBA programs which can offer different financial outcomes depending on individual career goals.

Table of contents

How Much Does a Humanities Degree Program Cost?

Grasping the total expenses involved in a humanities degree is vital for accurately weighing its return on investment (ROI). Graduate tuition and fees in the U.S. have risen steadily, with student debt averaging over $37,000 per borrower in 2023. Evaluating all cost factors clarifies the financial implications beyond sticker price.

Several key expenses shape the overall cost and impact ROI:

  • Tuition and fees: These usually represent the largest financial commitment and differ significantly between institutions, influencing the initial investment.
  • Books and materials: Required readings and specialized supplies often add considerable yearly costs, sometimes overlooked in budgeting.
  • Living or relocation expenses: Costs for housing, transportation, and daily needs can escalate, especially when moving to pursue the program.
  • Opportunity cost: Forgone wages from full-time work during study periods represent a substantial, intangible cost that affects overall value.
  • Hidden or indirect costs: Application fees, technology purchases, and miscellaneous expenses accumulate throughout the program and should not be underestimated.

When discussing the question, "How much does a humanities degree program cost?" with a recent graduate, he reflected on the emotional and practical challenges faced. "I remember struggling to balance part-time jobs while managing coursework," he shared. The unpredictable expenses for books and relocating caught him off guard, requiring careful financial juggling. He also expressed that the opportunity cost felt more significant in hindsight, noting, "Missing out on a steady paycheck was tough but made me rethink the true investment." Despite the hurdles, he emphasized that understanding the full financial picture early on helped him plan better and manage expectations throughout his studies.

What Financial Aid Is Available for Humanities Degree Programs?

Financial aid significantly lowers upfront expenses for humanities students, directly enhancing the long-term return on investment by reducing reliance on loans. Recent statistics show that more than 85% of graduate students benefit from some form of financial support, underscoring its critical role in managing education costs and debt levels.

Common types of financial aid that improve affordability and ROI in humanities degree programs include:

  • Scholarships: These awards, often based on academic achievement or special talents, require no repayment and reduce overall education costs, boosting ROI by limiting debt accumulation.
  • Grants: Typically awarded based on financial need, grants provide free funding that minimizes borrowing, helping students keep graduate expenses manageable and improving financial outcomes.
  • Fellowships: Particularly prevalent in graduate humanities education, fellowships offer stipends and tuition coverage, allowing recipients to focus on research and coursework without taking on loans.
  • Employer Tuition Assistance: For working adults, employer-sponsored tuition benefits can cover full or partial costs, decreasing out-of-pocket spending and supporting continuous income, which enhances ROI.
  • Federal Loans: Though loans must be repaid, federal options often feature lower interest rates and flexible repayment plans, reducing financial strain compared to private borrowing and making investment in education less risky.

What Graduates Say About The ROI of Their Humanities Degree

  • Tristan: "Choosing to pursue a humanities degree as a traditional student was a leap of faith, especially knowing that the average cost hovers around $35,000 per year. However, I viewed it as an investment in critical thinking and communication skills that no matter the job market shifts, will always provide long-term value. This degree opened doors in publishing and education sectors, proving the initial cost was absolutely worth it for me."
  • Joshua: "As an online student, affordability was key in my decision to study humanities. With tuition typically lower than on-campus programs and the flexibility to work concurrently, I balanced costs without sacrificing quality. The career impact was subtle but meaningful: enhanced cultural awareness and writing skills helped me advance in nonprofit leadership, confirming the degree's ROI despite its moderate expense."
  • Ivy: "Completing a humanities degree part-time while working full-time was challenging, but a strategic choice given the approximately $25,000 annual cost. Reflecting on this investment, I appreciate how it sharpened my analytical abilities and broadened my worldview-qualities that have been invaluable in my consulting career. In professional terms, the degree's worth has exceeded the financial outlay through increased opportunities and industry recognition."

Other Things You Should Know About Humanities Degrees

What skills do humanities graduates gain that affect the ROI of a humanities degree in 2027?

In 2027, humanities graduates gain critical thinking, communication, and cultural awareness, which are increasingly valued in diverse industries. These skills enhance employability and adaptability, positively influencing the degree's return on investment despite potentially lower starting salaries compared to technical degrees.

How does job market volatility affect the ROI of a humanities degree?

The job market for humanities graduates can be influenced by economic fluctuations and shifts in industry demand. Because humanities disciplines are broad and not tied to a specific technical skill set, graduates might experience varied employment opportunities depending on economic trends. This volatility can lead to less predictable short-term financial returns but may offer diverse career paths over time.

What is the payback period for a humanities degree by 2027?

The payback period is the number of years needed for extra earnings to cover tuition and lost wages, often measured against the program’s total cost. For a humanities degree, analysts usually compare net present value over 10 to 20 years, using salary data from the U.S. Bureau of Labor Statistics.

What role does postgraduate education play in the ROI of humanities degrees?

Further education, such as master's or doctoral degrees, can significantly improve the ROI for humanities graduates by opening opportunities in academia, research, or specialized fields. However, postgraduate study also requires additional investment of time and money, which should be weighed against potential career gains. Many careers related to humanities do not require advanced degrees, so the decision depends on individual career goals.