Is a Business Degree Worth the Student Loan Debt in 2025? Pros & Cons
Business degrees can be beneficial for many, but it's important to consider the potential impacts of student loan debt when deciding to attend business school.
Business degrees can apply to many industries, so there are various types of degrees within this field at different levels to consider. Obtaining a business degree can be worth it, depending on your career goals, the school you attend, and the salary you earn after graduating. It's important to consider the benefits of a business degree, as well as the drawbacks, in addition to the average business degree salary that you might obtain in this field.
Below, we'll discuss the pros and cons of a business degree and the factors to determine if it's worth it to help you make an informed decision. We'll also give you an overview of the student loan process, so you're informed about the potential of student debt with your business degree.
Disclaimer: The following salary information was sourced from the U.S. Bureau of Labor Statistics (BLS), which provides official data on wages, employment trends, and job outlooks across various industries. Please note that these salaries are based on national averages. The actual salary will vary depending on experience level, geographic area, and other factors.
Are Business Degrees Worth It?
<p>Business degrees can be worth it for students who wish to pursue careers in people management, project management, small business ownership, and marketing. For most of these careers, basic business knowledge and leadership skills are necessary for individuals to succeed in their professions, and an undergraduate business degree is essential.
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<p>When thinking about getting a business degree, it's important to consider a business major's salary after graduation. Business degrees come with a range of earning potentials — from high-paying jobs to those that pay around the average annual income for the U.S.
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<p>According to the U.S. Bureau of Labor Statistics (BLS), average salaries for all business-related professions are around $79,000 annually, which is higher than the $48,000 average median annual pay for all professions in the U.S. The higher average pay of a business degree can make a business degree worth obtaining.
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<p>You should weigh the salary of your expected profession against the potential for student loan debt, the overall job market, and the likelihood of securing a job in your specific field after graduation. You should also factor in the need to potentially continue pursuing higher education in business, such as a master's degree, to determine if a business degree is worth it for you.
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<h2 id="section---HowStudentLoansWorkApplicationAndRepayment">How Student Loans Work: Application and Repayment</h2>
<p>Student loans can be either private or federal, and federal loan eligibility is determined after you file the Free Application for Federal Student Aid (FAFSA). There are four types of federal loans you may be eligible for, each with varying repayment terms and interest rates.
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<p>Once you have reviewed the details of each student loan plan, you can accept it, and the federal funds will be disbursed once or twice a year, depending on the loan. Repayment of your federal student loans starts six to nine months after graduating. Each loan payment will include a certain amount of predetermined interest.
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<p>Getting a business degree can lead to student debt, and it's important to keep in mind the potential of student debt and how it can affect your finances. You should always try to make your business degree affordable through other means, such as grants and scholarships, before taking out federal or private student loans to cover your higher education costs.
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<h2 id="section---TypesOfBusinessDegreesAndCareerPaths">Types of Business Degrees and Career Paths</h2>
<p>If you are interested in a business degree, it's important to determine the exact type of business degree you might want to pursue and the common career paths that these degrees lead to. For example, you could pursue a <a href="https://learn.org/articles/two_year_business_degree_worth_it.html">two-year business degree</a> or a four-year business degree — or you may even want to enroll in a graduate degree program, such as a Master of Business Administration (MBA).
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<p>In general, college students can choose from the following undergrad business degrees:
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<ul><li><b>Entrepreneurship</b>: This business degree can pave the way for running a small business or operating startups.
</li><li><b>Marketing</b>: Marketing business degrees lead to careers as marketing account executives, marketing managers, or brand managers.
</li><li><b>Human resources</b>: Human resources and business go hand-in-hand, and graduating with this degree can lead to a career as a human resource specialist or manager.
</li><li><b>Business administration</b>: Business administration degrees let graduates pursue careers as business analysts, project managers, or market research analysts.
</li></ul><h2 id="section---HowToMakeCollegeMoreAffordableAndReduceStudentLoanDebt">How To Make College More Affordable and Reduce Student Loan Debt</h2>
<p>Student loans are something virtually every student might need to rely on to obtain their degree; however, a large amount of student debt can have negative impacts on your future financially.
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<p>You can make college more affordable with scholarships, grants, and other state-level programs that aim to lower tuition. Below, we'll include some tips to help you reduce the amount of debt and student loans you may need to obtain your college degree.
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<h3 id="section---SubmitTheFAFSAForPellGrantEligibility">Submit the FAFSA for Pell Grant Eligibility</h3>
<p>The FAFSA determines your eligibility for various types of federal funding and financial aid. One of the most important types of funding that the FAFSA helps determine is eligibility for the Pell Grant.
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<p>Qualified students will be eligible to receive grants of up to $7,000 per academic year, and this money does not need to be paid back. Throughout your degree program, the Pell Grant can be essential in keeping costs minimal.
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<h3 id="section---LookForScholarships">Look for Scholarships</h3>
<p>Students interested in pursuing careers in business can find scholarships directly through schools or private organizations. You can apply directly through large corporations, nonprofits, and organizations such as Dell, American States Utility Services, Inc., and many others.
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<p>Apply for as many scholarships as possible to increase your chances of sufficient funding for your degree.
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<h3 id="section---UseTransferCreditsCLEPAndAPCredits">Use Transfer Credits, CLEP, and AP Credits</h3>
<p>Transfer credits can be obtained by students who attend a community college program or another low-cost business degree program. After completing credit hours through one of these programs, students can transfer their credits to their chosen school where they can finish their business degree, making the total cost of the degree more affordable.
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<p>The College Level Examination Program (CLEP) exams are another cost-saving option. Adults, high school students, grad students, and other professionals may take these exams to earn college credit. CLEP offers exams in various fields, from basic requirements, like math and history, to specialized courses, like economics and psychology.
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<p>If you pass the exam, you can transfer the credits you earned to your degree, allowing you to skip courses you already know and streamline the requirements for graduating with your degree.
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<p>For high school students, Advanced Placement (AP) credits are an option for making a business degree affordable. High school graduates can put their AP credits earned in high school toward general education credits required for a business bachelor's degree. With these out of the way, students can focus on required courses for their major, completing their degree faster and paying less overall for their degree.
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<h2 id="section---FAQsAboutBusinessAdministrationDegreePrograms">FAQs About Business Administration Degree Programs</h2>
<p>When deciding about your business undergraduate degree, it's common to have questions. We answer the most frequently asked questions below so you can understand more about these programs.
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<h3 id="section---IsABusinessAdministrationDegreeWorthIt">Is a Business Administration Degree Worth It?</h3>
<p>Business administration is a more general type of business degree. With a degree in business administration, you will be well-suited to start entry-level jobs in various sectors, such as finance, management, and marketing. Business administration degrees can be a good choice for someone who doesn't have a specialization within the business field in mind and wants a general business education to get their career started.
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<p>However, this lack of specialization can lead to slower career progression for some and a lower starting salary in some cases. It's important to weigh these pros and cons when deciding whether or not this degree is worth it to you.
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<h3 id="section---IsDoingAMasterSDegreeInBusinessWorthIt">Is Doing a Master's Degree in Business Worth It?</h3>
<p>A master's degree in business is something that many college graduates strive to achieve, either straight after graduating from an undergraduate program or after gaining some hands-on work experience. This can help individuals who want to increase their annual salaries or break into a specific specialized career within the field of business.
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<p>It can also be a good method to slightly change careers or fields for those who already have work experience in a related profession, such as finance.
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<h3 id="section---HowMuchDoesABachelorSDegreeInBusinessCost">How Much Does a Bachelor's Degree in Business Cost?</h3>
<p>A bachelor's degree in business can range in cost depending on the school you attend and whether or not the degree program is online, hybrid, or in-person. Generally speaking, online and hybrid programs tend to be cheaper than fully on-campus programs. Before scholarships or any applicable tuition discounts, you can expect to pay around $15,000 per year for an on-campus program.
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<h2 id="section---ExploreOnlineBachelorSDegreesInBusiness">Explore Online Bachelor's Degrees in Business</h2>
<p>Getting a business degree can be the right choice for many people; however, it is important to be informed about what a business degree can do for your personal and professional goals. Browse through Learn.org to learn more about online bachelor's degrees in business and other types of business degrees, like MBA programs, offered by schools in your state to find the degree that suits your goals best.</p>