Social work and mental health counseling jobs are projected to grow faster than the average rate for all occupations over the next 10 years, according to the Bureau of Labor Statistics. But because these careers often require advanced degrees, yet offer low pay, it can be difficult for graduates to earn a positive return on investment.
Social work job openings are expected to grow by 74,000 positions per year from 2024 to 2034, putting the field in high demand. But social workers only earn a median income of $61,330 a year, per the BLS.
And master’s of social work programs hold an average cost-adjusted return of -2%, according to a new research paper from American University’s Postsecondary Education and Economics Research (PEER) Center, which examined data from the Texas Education Research Center on 121 advanced degrees to determine the impact of the credential on graduate earnings.
Similarly, professionals in substance abuse, behavioral disorder and mental health counselor occupations earn median wages below $60,000 a year, despite typically needing a master’s degree in psychology or a related field.
These roles are projected to have an average of 48,300 job openings per year, on average, over the next decade, the BLS reports — a faster growth rate than any other job that typically requires a master’s degree — but the average ROI for master’s programs in clinical psychology and psychology comes in at -5% and -8%, respectively, according to PEER’s data.
Students interested in these low-ROI programs should “place a lot of weight” on the available earnings data, says Robert Farrington, personal finance expert and founder of The College Investor.
“It’s going to be how your financial life looks for the next 10 to 20 years after you’re done with the program,” he says. “If you spend a lot of money and [get into] a lot of debt, you’re going to have to deal with the consequences of that once you enter that field, if you enter that field at all, and that can make your financial 20s, 30s and 40s very challenging.”
The real ROI of a master’s degree in social work
Pursuing a career in social work or a related field doesn’t have to mean accepting a small salary, says Tiffany Llewellyn, director of The Student Experience: Career Design & Readiness at New York University’s Silver School of Social Work.
Llewellyn says she encourages students to think about pursuing social work for both “the income and the outcome.”
Social workers provide valuable services, including psychotherapy, helping families navigate challenging decisions in hospitals and schools, and guiding organizations to ensure they can meet client needs, according to the Council on Social Work Education.
“There is passion, there is hope [students] hold for our humanity. There is purpose around the impact that students want to have that drives their pursuit of a social work degree,” Llewellyn says. “And that also was accompanied by knowing what they deserve and being able to make an equitable wage and salary.”
She points out that while the national median income for social workers is relatively low, it can be much higher in places like New York City. The median income for social workers is above $100,000 a year in Hawaii, New Hampshire, Nevada, Rhode Island and the District of Columbia, according to BLS data.
While students may have concerns about their earning potential, Llewellyn says those less familiar with the field may not realize the kind of opportunities available to master’s of social work graduates.
“We are a vast profession where social workers occupy roles across multiple different industries, from the hospitals to the schools to private practices to tech companies,” she says. “I think the concept of social workers being underpaid is outdated, but also dependent on the demographic realities and the perspective someone holds about who a social worker is and what they do.”
How to pay for your degree
For those who want to pursue an advanced degree in social work, psychology or another field with a historically low ROI, Farrington encourages careful financial planning to help protect yourself from burdensome debt after you graduate.
That may include sticking to federal loans with benefits like income-driven repayment plans and forgiveness opportunities. Or it may mean minimizing undergraduate costs by starting out at a community college, he says.
“You might want to help the community and you’re doing this because you have a passion for that work, but it also can be very challenging to maintain that passion if you’re struggling with debt payments,” Farrington says.
It’s worth noting that graduate school is different from undergraduate programs because there aren’t as many federal aid programs, Farrington says. Pell Grants, for example, are only available for undergraduate studies. As a result, many graduate students rely on loans to fund their education.
Beginning on July 1, 2026, graduate students will be limited in the amount of money they can take out in federal student loans. Those pursuing non-professional degrees like a master’s of social work have a lower limit — $20,500 a year and $100,000 in total — than students pursuing professional degrees like medicine or law.
Master’s of social work grads hold an average of $45,164 in student debt, according to Education Data Initiative. Costs for master’s of social work programs can vary widely — from around $15,000 a year to over $60,000 a year.
Notably, many social workers and counselors can pursue careers in nonprofit services that could help them qualify for Public Service Loan Forgiveness after 10 years of repayment as long as they stick with federal loans and an income-driven repayment plan.
To help determine how much student debt you can afford to take on, Farrington offers this rule of thumb: “Never borrow more than you expect to make in your first year after graduation.”
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