How Much Student Debt Will You Have From a Marketing Degree?

Is a marketing degree worth it when factoring in student debt? People with marketing degrees can earn a lot of money, but an undergraduate degree or MBA isn’t always a good investment. Learn about the important steps students can take to make sure they get a good ROI out of their degree and minimize their debt.

Average Cost of an Undergraduate Marketing Degree

The first marketing degree most people consider is an undergraduate bachelor’s degree from a four-year college or university. The potential student debt from an undergraduate marketing degree can vary significantly from one school and student to another.

The average cost of tuition for the top ten marketing colleges in the U.S. was about $14,000 for in-state students and about $59,000 for out-of-state students. The top ten universities for marketing differ significantly in size. Duke University and Stanford have the smallest student population at less than 18,000 students. In contrast, New York University has over 58,000 students.

That means the specific university you attend has a profound impact on how much you will pay and the experience you will have. Ideally, you want to choose a high-ranked, in-state school with a smaller student population. If you can only choose one of those traits, go for an in-state public university.

As of 2023, undergraduate students have an average of $37,338 in student loan debt. Students at private universities owe much more with an average of $54,921. An estimated 50% of graduates still owe $20,000 over 20 years after starting college.

Remember, the actual amount you pay back on student loans is higher than your tuition because of interest. The cost of tuition is effectively the minimum amount you will have to pay for your marketing degree, but it will likely end up being significantly more.

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Are Marketing Graduate Degrees Worth It?

One of the most popular graduate degrees in the U.S. is the Master of Business Administration (MBA). While you can pursue PhDs in marketing fields as well, an MBA alone is enough to open up a plethora of very high-paying jobs.

That doesn’t necessarily mean an MBA is always a good investment. It depends on the individual’s circumstances. Just like with undergraduate degrees, the cost of an MBA varies significantly from one university to another. More importantly, the average student debt at the top ten MBA universities covers a wide range.

For instance, students who earned their MBA at the Dartmouth Tuck School of Business incurred an average of $41,000 in student debt. On the other hand, students who attended the Kellogg School of Management at Northwestern University graduated with over $172,000 in debt!

These students paid over four times more than the Dartmouth students for the same degree. The difference is even greater when factoring interest into the equation. With a 7% interest rate and a loan repayment term of 10 years, the average Northwestern MBA student could end up paying over $67,000 in interest on top of their original debt amount.

Average MBA Graduate Salaries

Luckily, the typical MBA graduate earns an average of $115,000 as of 2022. If a recent MBA graduate was smart about managing their living expenses for that first year, they could potentially pay off $40,000 in debt within a year or two of graduating. Likewise, the Northwestern student with $172,000 in debt could theoretically pay off $30,000 or more a year and have their loan repaid within five or six years.

However, not all MBA students make six figures right after graduation. Depending on the field you work in and the university you attended, you might earn $50,000-$60,000 at first. This lower end of average MBA incomes is important to consider because it represents a worst-case scenario for paying off both your undergraduate and graduate degrees.

Remember, if you are unable to pay your student loan debt, you could end up in serious financial trouble. Lenders are able to sue for unpaid debt if you go a certain amount of time without paying anything. Interest rates on student loans are very high today, as well, often over 8% for undergraduates.

Consider whether you’re passionate enough about marketing to risk the additional debt required for an MBA. Would it lead to better job opportunities? Consider asking your current employer if they will help pay for it. Some companies may offer financial support for part-time degree programs so you can take on a more advanced job after graduation.

How to Maximize the Value of Your Degree

The first step you should take to reduce your student debt is to apply for scholarships and grants. It’s a time commitment and requires a lot of work, but it will be worth it in the long run. Try to stay positive, even if you don’t get every scholarship you apply for. Bookmark a list of marketing major scholarships and check it every semester for new opportunities.

Beyond scholarships, what other strategies can you use to reduce the cost of your marketing degree?

Attend an In-State University

The first thing you can do to save money on your marketing degree is to choose an in-state university. There is a clear and noticeable difference between the tuition in-state marketing students pay and what out-of-state students pay. When you go to an out-of-state university, you pay more for the same degree.

Of course, it’s important to consider the specific universities you’ve been accepted to. It’s possible for a high-value out-of-state university to be a better deal than a low-value in-state university. You may pay more for the out-of-state degree, but you will have a higher chance of getting a high-paying job afterward.

For instance, if you get accepted into Harvard Business School, it will be a great investment no matter what state you live in. If you have to choose between out-of-state and in-state schools, compare their rankings, tuition and the average income for their marketing graduates specifically.

Go to Community College for Two Years

To save even more money, consider taking your first two years of class at a community college. Some people shy away from this option because community colleges aren’t as glamorous or prestigious as universities. However, the goal of pursuing a degree should be to earn it in the most responsible way possible and minimize debt.

Community colleges charge an average of only $3,550 per year for in-state students, hardly a third of the average in-state tuition at a university. You can save over $10,000 or more by taking the first two years of your degree at a community college. You can even contact admissions officers at your top choice universities to work out a plan for transferring community college credits.

Choose a Public, High-Value University

When you’re choosing a four-year university for your marketing degree, you may be overwhelmed by options at first. A few rules of thumb can help you get a good ROI, though.

For instance, beyond Ivy League schools, it’s best to stick to public universities. Private universities have fewer opportunities for scholarships and grants and don’t have discounts for in-state students. The average cost of tuition for private universities is over three times more than public university in-state tuition.

Be Smart About Non-Tuition Expenses

Tuition isn’t the only expense you can save money on. You need to factor the cost of books, supplies and living expenses into the overall cost of your marketing degree. It’s easy to forget about these expenses and let them get out of hand.

There are several ways you can avoid that possibility. For example, a laptop is arguably the number one piece of equipment you need for completing your degree. There are plenty of great laptops you can get for much less than $1000, including used laptops under $500.

Do the math before deciding to live on campus, too. It may be cheaper, but not always. There are plenty of universities where it may be less expensive to live off-campus and make your own meals. You can save even more money by finding a roommate or housing group.

Don’t Be Afraid to Refinance

If you made it to graduation but had to settle for a high interest rate on your student loans, there are ways to get a better deal. Refinancing your student loans is a way to both consolidate multiple loans and get a lower interest rate.

Refinancing is a particularly good option if you have a steady, high income and plans to pay off your loans in under 10 years. Loan refinancing agencies typically offer lower interest rates for shorter repayment periods. You can refinance your loans for a five-year repayment period and save thousands on interest. This method is also a good way to avoid overpayment fees charged by some lenders.

Getting the Most Out of a Marketing Degree

A marketing degree can be a great investment if you are smart about choosing your university and financing options. Remember, not all marketing graduates earn six-figure salaries. Ensuring you make a good living after college requires careful planning with steps like community college, financial aid and living expenses.