HBCUs with the Highest Payoff for Black Students in 2024

Key Insights:

• Based on government data, alumni of these 10 HBCUs tend to earn more than other Black graduates in their state
• Women's college Spelman offers the highest economic return, with graduates earning $16k more than alumni of other schools
• Graduates of Xavier University of Louisiana, Hampton University and Morehouse College have a financial payoff of at least $10k

Many students know they want to attend an HBCU long before it comes time to apply. HBCUs are well-known for their important roles in Black and American history. The benefits of attending an HBCU today are many, such as inclusive campuses and supportive learning environments. Perhaps most importantly, campuses have a strong sense of community, which is a key priority for prospective HBCU students according to a 2023 survey.

These factors may contribute to stronger outcomes for Black college students, but it can also be informative to look at who is enrolling at a college, how much they’re paying for it and what they’re getting out of it to help assess the financial value colleges provide (or don’t provide) to their community. Annual net price, acceptance rates, students’ financial background and earnings data all play a key role in making that assessment.

Evaluating the Financial Payoffs for Black Students

To highlight which HBCUs offer the highest payoff for Black students, we looked at median earnings by college and compared it to the state salary threshold, which is the median salary for Black graduates in the same state with the same level of education. Analyzing the data in this way allows us to account for the school's location, an important factor given that most HBCUs are located in southern states where median earnings are lower overall.

2024 HBCUs with the Highest Payoff

The Schools at the Top: A Closer Look

 

Atlanta women’s school Spelman College rose to the top HBCU for alumni payoff, with graduates earning a median salary of more than $16,000 above what other Black college graduates earn in Georgia. Median salaries were also $14,600 higher than the median for all women with bachelor’s degrees in Georgia.

Most students at Spelman get financial aid, with 96% receiving a grant from Spelman. The university is still the most expensive HBCU, although the annual net price dropped nearly $5,000, now costing $40,810 on average after grants and scholarships. However, actual cost varies from student to student depending on academic and financial circumstances.

The most popular majors at Spelman are psychology, political science, biology and economics, according to data from College Scorecard. Top majors for salary at Spelman are economics and international studies.

Xavier University of Louisiana ranks second with alumni earning a median salary $11,667 higher than the median for Black college graduates in the state. The college ranked first in 2022, but Black college graduates in Louisiana saw a significant salary boost overall, shrinking comparative payoff for Xavier graduates.

Accessibility at Xavier is high, with an admissions rate of 95% and more than half of students receiving Pell Grants. Nearly all students receive grant aid from the school. The university’s annual net price increased slightly, now sitting at $23,312. However, the school has a lower graduation rate of 52%. 

Xavier is the HBCU serving the most STEM majors, with more than half (52%) of students pursuing a STEM degree. Top fields of study at Xavier include biology, psychology and chemistry.

Hampton graduates now earn nearly $11,000 above the median for Black college graduates in Louisiana. However, annual net price also jumped more than $10,000, second only to Spelman, and is now costing students an average of $40,351 per year after grants and scholarships.

Hampton serves fewer low-income students compared to other HBCUs, with 17% of students receiving a Pell Grant. The college maintains a higher completion rate than most other HBCUs with 57% of students graduating within six years, and has an admissions rate of 80%.

The most popular degrees at Hampton include business administration, psychology and biology. Top-paid bachelor’s degrees for Hampton graduates are in nursing, accounting, and business administration.

Men’s liberal arts school Morehouse College in Atlanta ranks fourth with alumni earning a median salary $10,322 above the state median for other Black graduates with a bachelor’s degree. The college is fairly accessible, admitting 65% of applicants. However, the school’s annual net price jumped from $33,000 to just over $40,000. Morehouse serves fewer low-income students than other HBCUs, with 43% of students receiving the Pell Grant in 2021-22.

Business administration, sociology, and biology are the college’s most popular bachelor’s degrees, according to data from College Scorecard. Economics, biology, and business majors earn the highest salaries at Morehouse.

Graduates of Tuskegee University saw a significant bump in median earnings, pushing the university to #5 for highest payoff with median alumni salaries about $7,000 above the median for Black graduates with a bachelor’s degree in Alabama. 

IPEDS data shows 57% of students at Tuskegee were Pell Grant recipients, and the university provided grant aid for 97% percent of students in the 2021-22 school year. However, the university’s annual net price of just over $40,000 and admissions rate of 34% may make the school less accessible for some students.

One in three students at Tuskegee are STEM majors, according to data from the Postsecondary Value Commission. Popular majors include mechanical engineering, animal sciences, and biology. The university’s highest-earning majors are mechanical engineering, electrical engineering, and chemical engineering.

Florida A&M graduates earn a median of $5,154 above the state salary threshold for Black college graduates, offering a high payoff for a low annual net price of less than $15,000. Just over half (55%) of students were Pell recipients in the 2021-22 school year, and 98% of students got grant aid from the school, state, local, or federal programs. However, the school is fairly selective with an admissions rate of 35%. Florida A&M is one of the few public schools that made the top 10 list.

The university’s largest programs are in health services and allied health, interdisciplinary studies, and business administration. Top majors for salary include construction engineering technologies, nursing, and allied health diagnostics programs.

Howard University in D.C. ranks #7 this year thanks to a roughly $12,000 boost in median earnings after graduation. Alumni earned $4,680 more than the median for Black college graduates in the District. Getting into Howard is fairly competitive, with an admissions rate of 35%. The university has an annual net price of $28,035. Four in 10 students were Pell recipients, but nearly all students got grants from the school in 2021-22, according to IPEDS data.

One in four Howard students are STEM majors, and College Scorecard data shows the most popular degrees at Howard are biology, political science, and public relations. Top majors for salary include allied health diagnostics, management information systems, and computer systems analysis.

North Carolina A&T graduates also saw a jump of more than $11,000 in median alumni earnings, pushing the university into the top 10 HBCUs for payoff. Graduates earned a median of $4,448 above what Black alumni of other schools earned in North Carolina. 

The public university also boasts a low annual net price of $11,231 and a fairly accessible admissions rate of 57%. Just over half of students are from low-income families, which is lower than most other HBCUs but high compared to four-year colleges in general.

The university’s most popular degrees are liberal arts, communications, and health and physical education. Top majors for salary include industrial, mechanical, and electrical engineering.

Jackson State graduates earn a median salary $4,136 higher than that of other Black college graduates in Mississippi, ranking the university #9 for top HBCUs for financial payoff. Jackson State tends to be more expensive than other public HBCUs with an annual net price of nearly $20,000. However, 65% of students were Pell Grant recipients according to IPEDS data, and the university has a 62% admissions rate, making it more accessible.

About one in four students are STEM majors, and the university’s most popular degrees are interdisciplinary studies, biology, and social work. Top majors for salary at Jackson State are computer engineering, computer science, and civil engineering.

Oakwood University in Alabama also saw significant increases in alumni earnings, with the median salary up more than $13,000. Alumni earned $4,125 more than Black graduates of other colleges in Alabama. The university awarded 93% of students with grant aid, but the annual net price is still higher than other HBCUs at nearly $27,000. Roughly half of students were Pell Grant recipients in the 2021-22 school year, and the university has an admissions rate of 72%, making it fairly accessible despite a higher net cost.

Roughly a quarter of students at Oakwood are STEM majors. The most popular degrees at Oakwood include liberal arts, biology, and social work.

What's Changed for HBCUs in 2 years?

We originally conducted this study in 2022. Since then, financial payoffs rose considerably for almost every school and several new HBCUs moved up to replace others. View the 2022 results and a comparison to this year's rankings below.

2022 HBCUs with the Highest Payoff

Bottom Line

Comparing median earnings at HBCUs to other Black graduates in the state helps to highlight the value each college provides to its students and also accounts for racial inequities in the labor market that negatively impact salaries for Black college graduates. There are many factors that go into choosing the right school, and students should consider earnings potential as part of their college search.

Methodology

All college data was gathered using the Equitable Value Explorer from the Postsecondary Value Commission. Median salaries reflect earnings 10 years after enrollment. For each college, we compared median alumni earnings to the Black Threshold 1, earnings premium, gathered from each HBCU's profile page. Black Threshold 1, or Black T1, highlights median earnings for Black graduates in the same state with the same level of education. While disaggregated data specifically for Black graduates of HBCUs is not available, we limited our study to schools where at least 50% of the student body is Black. Our study only included schools that primarily grant bachelor's degrees.