STEM shines as US students seek bigger returns from college
Rising tuition costs, growing competition in the job market and rapid technological change are prompting more US college students to assess the financial return of their degrees and prioritise education that can lead to well-paying careers.
John Friedman, a professor of economics and international and public affairs at Brown University, said universities should place greater emphasis on career outcomes and help students translate their education into economic opportunities, a report in TIME magazine said.
“There are a lot of people who really do want to get career advancement, to get economic value out of the time and money they’re spending in college, and we should help them do that,” Friedman said.
To identify US institutions offering strong value to students, TIME partnered with data research firm Statista for its inaugural America’s Best Colleges 2026-2027 ranking.
The ranking evaluates institutions based on student outcomes, learning environments and attractiveness to students.
STEM dominates high-ROI choices
The search for degrees with strong financial returns has encouraged many students to pursue science, technology, engineering and mathematics (STEM) fields.
As per a National Science Foundation report, the STEM workforce in the US expanded by 26% between 2013 and 2023, as against just 9% growth in non-STEM jobs.
The rising interest is also reflected by the fact that US universities awarded a record number of science and engineering degrees between 2021 and 2023.
The country also remained the top destination for international students pursuing post-secondary STEM education.
Universities with established STEM programmes and strong links to high-paying technology careers feature prominently in TIME’s rankings.
Stanford University ranked first, benefiting from its close ties to Silicon Valley and strong startup culture, while the Massachusetts Institute of Technology (MIT) ranked second.
Harvey Mudd College, a small liberal arts institution with around 900 students, ranked third.
The college offers only STEM majors but also places strong emphasis on humanities, social sciences and the arts.
Thyra Briggs, Harvey Mudd’s vice president of admission and financial aid, said the combination of technical and liberal arts education helps graduates communicate complex ideas and understand the broader social and ethical implications of their work.
Practical experience can boost career prospects
Harvey Mudd’s Clinic Program is one example of its career-focused approach.
The year-long programme, established in the 1960s, places student teams directly with companies and organisations to tackle real-world research and engineering problems.
Students work within defined budgets and deadlines and deliver projects under the supervision of corporate partners.
Briggs said such projects can sometimes lead directly to employment opportunities.
However, STEM degrees are not the only route to strong returns on higher education.
Claremont McKenna College, ranked ninth and part of the same liberal arts consortium as Harvey Mudd, offers a broader range of non-STEM programmes.
Its career centre organises resources around “interest clusters” to help students identify potential career paths and explore relevant organisations.
The college reported that more than 96% of its recent graduates had defined plans, with a median salary of $80,000.
Friedman said students should not assume that only STEM fields provide strong financial returns, as earnings can vary significantly within individual sectors.
“There are going to be a lot of different fields that provide ROI,” he said.
Colleges focus on skills employers need
While STEM careers generally offer strong earning potential, experts say students can also benefit from entering growing fields where skilled workers are in short supply.
However, information about earnings and career opportunities can be harder to find for specialised fields, leaving some students unaware of potentially lucrative career paths or alternative ways to apply their degrees.
Sector-specific workforce training programmes can provide greater certainty by preparing students for particular jobs and connecting education directly with employers.
Some colleges are increasingly adopting this approach by helping students understand how classroom skills translate into workplace requirements.
The Fashion Institute of Technology, ranked 51st, is partnering with Lightcast to provide students with data on career prospects, job availability, salary potential and the technical and soft skills required for specialised majors, including technical design, spatial experience design, packaging design and toy design.
The shift reflects a broader trend in US higher education, with students increasingly weighing the cost of a degree against its potential career and financial payoff.