What’s a UC degree worth? New data shows high earnings, quick social mobility
As artificial intelligence transforms the job market and rising living costs squeeze family budgets, the University of California system is making the case that its degrees remain valuable investments. In a new report released Wednesday, the university highlighted higher than average earnings, accelerated social mobility and declining student debt for its graduates.
“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,” UC President James B. Milliken said in a statement. “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.”
The median cumulative earnings for UC graduates over a 20-year period amounts to more than $2 million, data from 2024 shows. This is $1.2 million more than high school graduates and $429,000 more than all California bachelor’s degree recipients. Within seven years of graduating, the median annual salary for UC bachelor’s degree recipients hits $86,000, which is higher than the median for all four-year degree-holders in California. And by the 12th year, this number rises to $113,000, exceeding the median salary for graduate degree-holders in the state, according to the data released by the UC’s Institutional Research and Academic Planning department.
The data also shows that a majority of graduates who received Pell Grants — federal need-based financial aid — earned more than their parents within three years of graduation. When the UC released a similar report in 2021, this number stood at five years, meaning the pace at which low-income students are achieving social mobility post graduation has increased. More than a third of UC undergraduates are low-income students.
This is true for first-generation students, too. These students surpassed their family’s earnings within seven years of graduation, according to the 2021 analysis. Now, this number has reduced to four years.
But earnings — by themselves — do not promise a good standard of living if students leave school with thousands in debt to pay off. According to the UC Office of the President, over 60% of the system’s undergraduates leave with zero student debt. For in-state students who have student loans to pay off, the average level of debt has declined by $11,400 over 10 years from $28,700 in 2013 to $17,300 in 2024.
“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,” outgoing UC Board of Regents Chair Janet Reilly said in a statement.
To follow through on this commitment to affordability, the system implemented the Tuition Stability Plan in 2022, which locks in a student’s tuition and systemwide fees at their freshman-year rate for the duration of their undergraduate education. The UC also decreased average textbook costs from $1,101 in 2013 to $391 in 2025.
Overall, the UC system estimated it takes in-state students at the University of California approximately six years after enrolling to recoup their investment in a bachelor’s degree. For this calculation, the institutional research department compared UC graduates’ earnings to out-of-pocket costs for their degrees and the opportunity costs of forgone wages of high school graduates of the same age.
This break-even point, however, varies by discipline. While engineering and nursing graduates recoup their investment five years after enrolling at UC, or a year after graduating for those who finish in four years, arts and humanities and biological science students take eight years after enrolling to do the same.
In an April report, the independent Public Policy Institute of California noted that transitioning into the labor market after graduation can be challenging, with some graduates experiencing underemployment and securing roles that do not need a bachelor’s degree. However, the report says that nearly 80% of college graduates in California see a positive return on their investment in higher education within 10 years of graduation.
In a bid to ensure the promise of the UC degree remains intact — especially amid a challenging entry-level job market — the UC system said it is building stronger pathways between the classroom and workforce through internships, employer partnerships and hands-on learning experiences for students.
This story was originally published July 1, 2026 at 5:26 PM with the headline "What’s a UC degree worth? New data shows high earnings, quick social mobility."
