Colleges are often seen as a clear path to higher returns and professional success. But what happens when your 4th year degree doesn’t meet your expectations? This appears to be the case when many Gen Zers are heading towards the job market.
A survey by Real Estate Witch, a research and review site focusing on the US housing market, predicts that university students will earn $84,855 a year after graduation. This is far from the average starting salary forecast for 2025 graduates of $68,680, according to the National Association of College Employers (NACE).
It is key to have realistic university graduate salaries expectations to negotiate fair pay after graduation when navigating the job market. It is also particularly important to know what you are trying to make if you are borrowing money for a university.
College Student Salary Forecast: Expectations vs. Reality
Gen Z students expect to be about $16,175 more than the median starting salary for graduates in 2025. Gaining their midterm predictions seems to be even further off the current average. A 2023 Real Estate Witch survey shows students expect a profit of $204,560 in the decade after graduation. That’s more than $105,000 difference from the average midcare player salary of $98,647.
Expectations for salary by majors
College students’ salary expectations vary widely from minority to minority. Business and psychology majors are far more overvaluing their salary than their peers.
On average, Business Major forecasts revenue of $98,113 a year after graduation, with an average starting salary of $50,200. Meanwhile, the psychology major expects to earn $88,265 with an actual departure of $44,700. In both cases, salary estimates are less than twice the actual average.
Liberal arts and journalism students also tend to overestimate their pay than other majors. Research shows that these majors overestimate their salaries over $35,000 each for over $43,000 each.
Salary Expectations by Gender
Salary expectations vary not only by primary but also by gender. Research by Nace Female alumni seniors expect to earn 16% less than their male counterparts, and they found that they usually earn less. Part of this is because women become more responsible at home as they age.
“We are committed to providing support for our clients with a wide range of services,” said Dr. Deborah Riverman, executive director of career advice and professional development at MIT. “Whether they are caring for children or caring for the elderly, (women) have more responsibility, which widens the wage gap.”
Another reason is that most highly paid areas, such as engineering and computer science, are dominated by men. Bankrate Research It shows that 74% of graduates in the 20 top pay degree program at the bachelor’s degree level are male. On the other hand, female students tend to work in areas with low pay such as social work and early childhood education.
However, across research fields, systematic barriers such as promotion and position inequality also contribute to existing ones. Gender wage gapaccording to the NACE survey results.
Racial pay expectations
Asian men and women both have higher salaries than their peers, followed by white men and men. Of all groups, the median salary for Hispanic women is $43,880.
Comparing this information with the latest US Census Bureau data on median annual household income, we find that black households have the biggest gap between other groups and other groups. Black households were $32,560 less than non-white non-Hispanic households and over $56,000 than their Asian counterparts.
| Race/Ethnicity | Median household income for 2023 |
|---|---|
| Asia | $112,800 |
| black | $56,490 |
| Hispanic | $65,540 |
| white | $89,050 |
| sauce: US Census Bureau |
It’s important to know why there are realistic salary expectations
It is important to investigate the expected revenue potential of your major to avoid any choices that could hinder your future. Having realistic college graduate salary expectations can help you make wise decisions about how much you can spend on a university if you are expecting to use student loans.
With wise planning, you can easily manage your student loan repayments from the university, while allowing you to pursue other goals, such as homeownership, start a family, or save for retirement. Similarly, knowing how much you should earn is key to negotiating a fair salary for yourself.
This perception prepares you to have a productive discussion with recruiters about how much you should be paid, regardless of race or gender, based on your education, field of research, and what others with similar experiences are making.
Three Tips for College Students and Recent Alumni to Navigate the Job Market
Riverman recommends selling himself shortly and avoiding securing a good job offer when it’s time to head to the workforce:
1. I’ll investigate the offer
You can find important information about job coverage for your field and area by checking out sites such as Payscale and the U.S. Bureau of Labor Statistics.
“In the fields you do at all levels, you need to know what your expected salary should be,” Riverman says. “Does it differ depending on the geographical realm? Absolutely. But you have to not only accept the job offer, but also get caught up in the practice of finding this information because it’s the only opportunity you think you’ll get.”
2. Ask for more details
To learn more about your state’s compensation and job benefits rights, you can visit the MIT Payroll Equity Resources page. This tool is free to use and is open to students and alumni.
Our students encourage us to know what the compensation provided is. What does that include? What are the advantages? These are all things you need to know. How do you view compensation with the company you are planning to do? So, what do annual salary increases look like? What does the bonus look like? How did they decide? Will it change if you enter a different role?
– Dr. Deborah Riverman, Executive Director of MIT Career Advice and Professional Development
3. Negotiate as if you’re defending for your friends
You may not be able to get the starting salary your current student wants, but knowing how you advocate for a friend will help you get to know how to approach potential employers about your desired salary and bring you closer Financial Security.
“Behave like you want your best friend — not yourself, are you okay?” Riverman said. “Because we stand up for others, but we are not standing up enough for ourselves.”
Conclusion
Current students may not have the most realistic salary expectations for university graduate salaries. It may help you investigate your current starting salary based on your industry and level of education.
That way you will know the realistic numbers to aim for when talking to potential employers when you graduate. You can also make decisions about how reasonably the university can afford to ensure that you can still be financially stable even after paying off your student loan.
