According to the Bureau of Labor Statistics, jobs in social work and mental health counseling are projected to grow faster than the average for all occupations over the next 10 years. However, because these jobs often require advanced degrees and pay low salaries, it can be difficult for graduates to earn a positive return on investment.
Job openings for social workers are expected to increase by 74,000 jobs per year from 2024 to 2034, increasing demand in this field. However, the median annual salary for social workers is just $61,330, according to the BLS.
And according to a new research paper from American University’s Postsecondary Education Economics Research (PEER) Center, the average cost-adjusted return for a master’s in social work program is -2%. This research paper examined Texas Educational Research Center data on 121 advanced degrees to determine the impact of qualifications on graduate student earnings.
Similarly, substance abuse, behavioral disorder, and mental health counselor professionals typically earn less than $60,000 per year on average, even though they typically require a master’s degree in psychology or a related field.
The BLS reports that these occupations are expected to generate an average of 48,300 job openings per year over the next 10 years, a higher growth rate than other occupations that typically require a master’s degree, but data from PEER shows that the average ROI for master’s programs in clinical psychology and psychology is -5% and -8%, respectively.
Students interested in these low-ROI programs should “weight” available earnings data, says Robert Farrington, a personal finance expert and founder of The College Investor.
“It will determine what your financial life will be like for the next 10 to 20 years after the program ends,” he says. “If you spend a lot of money and take on a lot of debt, you’re going to have to deal with the consequences once you get into that field, or if you ever get into that field. So that can make your finances very difficult in your 20s, 30s and 40s.”
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 consider pursuing social work for both “income and results.”
According to the Council on Social Work Education, social workers provide valuable services such as psychotherapy, help families make difficult decisions in hospitals and schools, and guide organizations to ensure they meet the needs of their clients.
“There’s a passion, there’s a hope that[students]have for our humanity. What drives students to pursue a social work degree is the purpose around the impact they want to make,” Llewellyn said. “And that also involved knowing what we deserve and being able to get fair wages and salaries.”
She points out that while the national average income for social workers is relatively low, it can be much higher in places like New York City. According to BLS data, the average income for social workers in Hawaii, New Hampshire, Nevada, Rhode Island and the District of Columbia is more than $100,000 a year.
While students may be concerned about their earning potential, Llewellyn says those less familiar with the field may not understand what opportunities are available to graduates of social work master’s programs.
“Our social workers are a vast profession with roles across several different industries, from hospitals to schools to private practices to technology companies,” she says. “I think the concept of social workers being underpaid is outdated, but it also depends on demographic realities and people’s perceptions of who social workers are and what they do.”
How to pay for your degree
For those looking to earn advanced degrees in fields with historically low ROI, such as social work or psychology, Farrington encourages careful financial planning to protect themselves from burdensome debt after graduation.
That could include sticking with federal loans, which have benefits such as income-driven repayment plans and forgiveness opportunities. Or it might mean minimizing undergraduate costs by starting at a community college, he says.
“You may be doing it because you want to help your community and you’re passionate about the work, but it can be very difficult to maintain that passion when you’re struggling to pay your debts,” Farrington says.
Farrington said it’s worth noting that graduate school is different from undergraduate programs because there aren’t as many federal aid programs. For example, Pell grants are only available for undergraduate research. As a result, many graduate students rely on loans to fund their education.
Starting July 1, 2026, the amount graduate students can borrow in federal student loans will be limited. The cap for students pursuing non-professional degrees, such as a master’s degree in social work, is lower than for students pursuing professional degrees, such as medicine or law, at $20,500 per year, or $100,000 in total.
According to the Education Data Initiative, graduates of master’s programs in social work carry an average of $45,164 in student debt. The cost of a master’s in social work program varies from about $15,000 per year to more than $60,000 per year.
Notably, many social workers and counselors can pursue a career in nonprofit service, which can help them qualify for public service loan forgiveness after 10 years of repayment, as long as they stick to federal loans and income-driven repayment plans.
To determine how much student loan debt you can afford, Farrington offers the following rule of thumb. “Never take on more debt than you expect to earn in your first year after graduation.”
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