We’re in the midst of graduation season — across the country, college grads are walking across the stage to accept their hard-earned diplomas. But after one big accomplishment comes another. Now’s the time to find a job and get serious about your finances. Not only does your degree factor into how much money you’ll make, but where you live also plays a part.
A recent study from Teach Simple determined the states with the highest and lowest median university earnings, using information from the U.S. Department of Education’s College Scorecard. The study analyzed and compared institutions within each state to determine the ranking order, considering three factors: median earnings of people who began college 10 years ago, the average annual cost a student who receives federal financial aid will pay to cover expenses and the average graduation rate within eight years of entering the school.
“Policies and regulations, such as minimum wage laws, tax policies, and labor regulations, differ across states and therefore impact earnings across institutions, says Cole Vineyard, founder of Teach Simple. “States with higher minimum wages or more worker-friendly policies may offer higher earnings for workers across all sectors.”
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Which states have the highest earning graduates?
According to Teach Simple’s data, these are the states with the highest earning graduates.
Also included is the institution in each state with the graduates who earn the most, four years after getting their degree, determined by Degree Choices. To determine which school had the biggest earners, Degree Choices analyzed 2022 data from the Department of Education’s College Scorecard on the median earnings of degree holders who received at least $1 in financial aid and who were working (and not enrolled) four years after completing their degree.
1. Massachusetts
- Average of each institution's median earnings: $65,319
- Average annual cost of school: $26,268
- Average graduation rate: 67%
- Institution with the biggest earners: Massachusetts Institute of Technology (MIT)
2. Rhode Island
- Average of each institution's median earnings: $64,818
- Average annual cost of school: $29,083
- Average graduation rate: 68%
- Institution with the biggest earners: Bryant University
3. Connecticut
- Average of each institution's median earnings: $64,720
- Average annual cost of school: $22,889
- Average graduation rate: 59%
- Institution with the biggest earners: The American Sentinel College of Nursing and Health Science
4. Maryland
- Average of each institution's median earnings: $60,286
- Average annual cost of school: $18,103
- Average graduation rate: 58%
- Institution with the biggest earners: Capitol Technology University
5. District of Columbia
- Average of each institution's median earnings: $59,364
- Average annual cost of school: $25,000
- Average graduation rate: 40%
- Institution with the biggest earners: N/a
“Education is extremely beneficial for economic success. Individuals with higher levels of education will have access to better job opportunities, higher salaries and greater job security," says Vineyard.
States with the lowest earning graduates
On the other hand, these are the states with the lowest earning graduates.
47. North Dakota
- Average of each institution's median earnings: $43,000
- Average annual cost of school: $12,867
- Average graduation rate: 40%
48. Kentucky
- Average of each institution's median earnings: $42,000
- Average annual cost of school: $15,811
- Average graduation rate: 47%
49. Arkansas
- Average of each institution's median earnings: $41,481
- Average annual cost of school: $14,143
- Average graduation rate: 43%
50. Mississippi
- Average of each institution's median earnings: $39,235
- Average annual cost of school: $13,750
- Average graduation rate: 45%
51. New Mexico
- Average of each institution's median earnings: $38,417
- Average annual cost of school: $14,833
- Average graduation rate: 46%
Bottom line
The Northeast has the highest earning graduates in the country, while the South and Midwest have the lowest, according to the data. Colleges in the Northeast also cost more, on average, and the cost of living is also higher in this area. While location isn't the be-all and end-all of how much money you'll make once receiving your degree, it is wise to pay attention to your state's post-graduation economic outcomes before committing to the financial burden of student loans.
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