Published April 6, 2026
College Debt-to-Income Ratio: What It Means for Your ROI
The debt-to-income ratio (DTI) is the single most important number for evaluating whether a college degree is worth it. Across 2,202 schools, the average graduate has a DTI of 0.46x — meaning they owe 0.46 times their first-year salary. A DTI below 1.0x means you can theoretically repay your entire debt with one year of earnings. Above 2.0x, and loan repayment becomes a serious financial burden.
What Is the Debt-to-Income Ratio?
The college debt-to-income ratio divides total student loan debt at graduation by first-year annual earnings. It answers a simple question: how many years of income does it take to repay your degree?
DTI Benchmarks
- < 0.5x
- Excellent. Debt is less than half your salary. Loan repayment is easy.
- 0.5 - 1.0x
- Good. You can repay within 2-5 years with reasonable payments.
- 1.0 - 1.5x
- Caution. Standard 10-year repayment is manageable but tight.
- 1.5 - 2.0x
- Warning. Monthly payments will be a significant burden. Consider income-driven repayment.
- > 2.0x
- Danger zone. Debt exceeds 2x earnings. High risk of default or extended repayment.
Best DTI Majors
These majors have the lowest average debt-to-income ratios — graduates owe the least relative to what they earn:
| Major | Avg DTI | Avg Debt | Avg Year 1 Earnings |
|---|---|---|---|
| Mechatronics, Robotics, and Automation Engineering | 0.20x | $18,764 | $92,000 |
| Naval Architecture and Marine Engineering | 0.21x | $19,372 | $92,000 |
| Textile Sciences and Engineering | 0.22x | $19,978 | $92,000 |
| Manufacturing Engineering | 0.22x | $19,990 | $92,000 |
| Information Science/Studies | 0.22x | $21,058 | $95,000 |
Worst DTI Majors
These majors leave graduates with the most debt relative to earnings:
| Major | Avg DTI | Avg Debt | Avg Year 1 Earnings |
|---|---|---|---|
| Funeral Service and Mortuary Science | 0.80x | $28,077 | $35,000 |
| Philosophy and Religious Studies, Other | 0.75x | $38,920 | $52,000 |
| Biology Technician/Biotechnology Laboratory Technician | 0.73x | $40,120 | $55,000 |
| Library Science and Administration | 0.72x | $30,270 | $42,000 |
| Public Administration and Social Service Professions, Other | 0.72x | $30,197 | $42,000 |
Why DTI Matters More Than Total Debt
A $50,000 debt for an engineering degree with $70,000 first-year earnings (DTI: 0.71x) is a better deal than $25,000 debt for a fine arts degree with $22,000 earnings (DTI: 1.14x). The absolute debt number is misleading without the earnings context.
This is why our ROI Score methodology weights debt-to-income as the single largest factor at 35% of the total score.
How Lenders Use DTI
The federal government uses DTI thresholds to evaluate programs under Gainful Employment regulations. Programs where graduates consistently have DTI above certain thresholds risk losing access to federal financial aid. This means that high-DTI programs are not just bad for students — they are increasingly being flagged by regulators.
Check Your Program
Use our ROI Calculator to see the DTI for any school-major combination, or browse the best ROI rankings to find programs with the lowest debt-to-income ratios.
Frequently Asked Questions
A DTI below 1.0x is considered good — meaning your total student debt is less than your first-year salary. The national average across 2,202 schools is 0.46x. STEM and healthcare majors typically have DTI of 0.5-0.8x, while some liberal arts and fine arts programs exceed 2.0x.
The average DTI across all school-major combinations in our database is 0.46x, based on average debt of $26,295 and average first-year earnings of $57,775. This varies widely by major and school.
Divide your total student loan debt at graduation by your annual salary. For example, $30,000 in debt with $40,000 earnings = 0.75x DTI. Our ROI Score uses median debt and median first-year earnings from the Department of Education College Scorecard.
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