- 1.CS degree holders earn approximately 20% more at entry level ($90K vs $75K) and 10-15% more at senior level (BLS, Glassdoor 2024)
- 2.The salary gap narrows significantly with experience—by year 10, skills and track record matter more than credentials
- 3.Big Tech (FAANG) increasingly hires without degrees, but they remain the exception; most enterprises still require them
- 4.ROI calculation: A $160K CS degree takes 8-12 years to pay back vs immediate earning potential without debt
- 5.Best path depends on situation: degree for traditional career, bootcamp/self-study for career changers or those avoiding debt
The Salary Gap Reality
The CS degree salary premium is real but often overstated. Yes, degree holders earn more on average—but the gap shrinks dramatically with experience, and individual variation far exceeds the credential effect. A skilled self-taught developer at a top company will out-earn an average CS graduate at a mid-tier firm.
The more important question isn't 'do degrees pay more?' but 'do degrees pay enough more to justify the cost?' With private university tuition exceeding $60K/year and four years of foregone income, the ROI calculation is more nuanced than simple salary comparisons suggest.
Degree vs No Degree: Overall Salary Comparison
Median compensation across all experience levels
CS Degree Holder
Median Annual Salary
No Degree (Self-Taught/Bootcamp)
Median Annual Salary
Entry-Level: Where the Gap is Largest
The degree premium is most pronounced at entry level. Without work history to evaluate, employers use credentials as a proxy for capability. This creates the largest salary gap early in careers.
Entry-Level Salary by Education Path
| Education Path | Median Starting Salary | Time to Job | Typical Debt |
|---|---|---|---|
| Top CS Program (MIT, Stanford, CMU) | $120,000-$150,000 | Before graduation | $0-$300,000 |
| State University CS Degree | $75,000-$95,000 | 0-3 months | $30,000-$80,000 |
| Coding Bootcamp | $60,000-$80,000 | 3-6 months | $10,000-$20,000 |
| Self-Taught (Strong Portfolio) | $55,000-$75,000 | 6-12 months | $0 |
| Self-Taught (Weak Portfolio) | $45,000-$60,000 | 12+ months | $0 |
Source: NACE, Course Report, Stack Overflow 2024
Career Trajectory: The Gap Narrows
The degree premium shrinks with experience. By mid-career, skills, track record, and professional network matter far more than where (or whether) you went to school. The 24% overall gap drops to 10-15% at senior levels.
Salary by Experience Level: Degree vs No Degree
| Experience | CS Degree | No Degree | Gap |
|---|---|---|---|
| Entry (0-2 years) | $80,000-$100,000 | $60,000-$80,000 | 25-30% |
| Mid (3-5 years) | $100,000-$130,000 | $85,000-$115,000 | 15-20% |
| Senior (6-10 years) | $130,000-$170,000 | $115,000-$155,000 | 10-15% |
| Staff+ (10+ years) | $170,000-$250,000 | $155,000-$230,000 | 8-12% |
Source: Levels.fyi, Stack Overflow Survey 2024
Companies Requiring CS Degrees
Companies requiring CS degrees dropped from 75% to 52% in five years. Tech leaders like Google, Apple, and IBM have publicly removed degree requirements. However, many job postings still list 'preferred' even when not required.
ROI Analysis: When Does a Degree Pay Off?
The ROI calculation must account for tuition, opportunity cost (4 years of foregone salary), and the time value of money. Even with higher lifetime earnings, the degree may not be the financially optimal choice.
10-Year Financial Comparison
| Factor | CS Degree Path | Self-Taught Path | Difference |
|---|---|---|---|
| Education Cost | -$160,000 (4yr private) | $0-$5,000 | Degree: -$155K |
| Years 1-4 Income | $0 (in school) | $240,000 (4×$60K avg) | Self-taught: +$240K |
| Years 5-10 Income | $720,000 ($120K avg) | $630,000 ($105K avg) | Degree: +$90K |
| Net After 10 Years | $560,000 | $865,000 | Self-taught: +$305K |
| Breakeven Point | Year 15-20 | Immediate | — |
Source: Financial modeling based on salary data
Source: Financial analysis
Where Degrees Matter Most
Degrees aren't equally valued everywhere. Certain industries, roles, and companies place more weight on formal education. Understanding these patterns helps you evaluate whether a degree is worth it for your target path.
Traditional enterprises, government, defense contractors, healthcare tech, and regulated industries often require degrees for compliance or cultural reasons. Many large non-tech companies use degree requirements as filtering criteria.
Key Skills
Common Jobs
- • Defense contractor
- • Healthcare IT
- • Government tech
- • Large bank IT
Mid-size tech companies and SaaS startups value degrees but will hire strong candidates without them. Having a degree provides slight advantage in hiring but won't compensate for skill gaps.
Key Skills
Common Jobs
- • SaaS companies
- • Tech-enabled startups
- • Digital agencies
Big Tech (Google, Apple, Meta) and innovative startups focus primarily on technical ability. They've publicly removed degree requirements. Strong portfolio, open source contributions, and interview performance matter most.
Key Skills
Common Jobs
- • FAANG
- • Unicorn startups
- • Developer tools companies
Alternative Paths to Tech Careers
Multiple paths lead to successful tech careers. Each has trade-offs in time, cost, and outcomes.
Education Paths Compared
| Path | Time | Cost | Starting Salary | Best For |
|---|---|---|---|---|
| 4-Year CS Degree | 4 years | $80K-$300K | $85K-$120K | Traditional students, target roles requiring degrees |
| Coding Bootcamp | 3-6 months | $10K-$20K | $60K-$80K | Career changers with savings |
| Self-Study | 6-18 months | $0-$500 | $50K-$70K | Disciplined learners, budget-conscious |
| Community College + Transfer | 4-5 years | $30K-$60K | $75K-$95K | Cost-conscious degree seekers |
| Online Degree (WGU, etc.) | 2-4 years | $15K-$30K | $70K-$90K | Working professionals |
Source: Course Report, NACE, program data
Company Hiring Trends
The trend toward skills-based hiring is accelerating. Major tech companies have dropped degree requirements, though actual hiring practices may lag stated policies.
Big Tech Degree Requirements (2024)
| Company | Official Policy | Reality | Non-Degree Hires % |
|---|---|---|---|
Not required | Skills-focused interviews | ~15% | |
| Apple | Not required since 2019 | Strong portfolio helps | ~12% |
| Meta | Not required | Emphasis on coding ability | ~10% |
| Amazon | Not required | Bar raiser process | ~8% |
| Microsoft | Preferred but not required | More traditional | ~5% |
Source: Company announcements, LinkedIn data
Which Path is Right for You?
The optimal path depends on your current situation, timeline, financial resources, and career goals.
Decision Framework
Get a CS degree if...
You're 18-22 with family support, targeting roles at traditional companies or regulated industries, want to keep academia/research options open, or plan to work internationally (visa requirements often include degrees).
Consider bootcamp if...
You're a career changer with savings, need structured learning, want job search support and networking, and can commit 3-6 months full-time.
Self-study works if...
You're highly self-motivated, have financial constraints, can dedicate 10-20 hours weekly for 6-18 months, and don't need hand-holding through the learning process.
Community college + transfer if...
You want a degree at lower cost, are willing to spend extra time, and can handle the less prestigious path to the same credential.
Skip formal education if...
You already have strong programming skills, have professional network in tech, are entrepreneurial or targeting startups, or want to start earning immediately.
This analysis combines federal wage data, developer surveys, and financial modeling to assess the value of CS degrees.
Coding Bootcamps: An Alternative Pathway
Coding bootcamps offer an accelerated pathway into tech careers. For those considering alternatives to traditional degrees, here's what you need to know about this intensive learning format.
What is a Coding Bootcamp?
A coding bootcamp is an intensive, short-term training program (typically 12-24 weeks) that teaches practical programming skills through hands-on projects. Unlike traditional degrees, bootcamps focus exclusively on job-ready skills and often include career services to help graduates land their first tech role.
Who Bootcamps Are Best For
- Career changers looking to enter tech quickly
- Professionals wanting to upskill or transition roles
- Self-taught developers seeking structured training
- Those unable to commit to a 4-year degree timeline
What People Love
Based on discussions from r/codingbootcamp, r/cscareerquestions, and r/learnprogramming
- Fast-track to employment—many graduates land jobs within 3-6 months
- Hands-on, project-based learning builds real portfolio pieces
- Career services and interview prep included in most programs
- Strong alumni networks for job referrals and mentorship
- Structured curriculum keeps you accountable and on track
Common Concerns
Honest feedback from bootcamp graduates and industry professionals
- Intense pace can be overwhelming—expect 60-80 hour weeks
- Some employers still prefer traditional CS degrees for certain roles
- Quality varies widely between programs—research carefully
- Job placement stats can be misleading—ask for CIRR audited reports
- May lack depth in computer science fundamentals like algorithms
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Programs for Tech careers:
- Software Engineering Career Track
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More Bootcamp Resources
Frequently Asked Questions
Continue Your Research
Data Sources and References
Annual survey with education and salary data for 90,000+ developers
Software developer employment and wage statistics
College graduate starting salary data
Hiring trends and degree requirement analysis
Taylor Rupe
Co-founder & Editor (B.S. Computer Science, Oregon State • B.A. Psychology, University of Washington)
Taylor combines technical expertise in computer science with a deep understanding of human behavior and learning. His dual background drives Hakia's mission: leveraging technology to build authoritative educational resources that help people make better decisions about their academic and career paths.