Given n points in the plane, the degree-K spanning tree problem asks for a spanning tree of minimum weight in which the degree of each vertex is at most K. This paper addresses the problem of computing low-weight degree-K spanning trees for K>2. It is shown that for an arbitrary collection of n points in the plane, there exists a spanning tree of degree three whose weight is at most 1.5 times the weight of a minimum spanning tree. It is shown that there exists a spanning tree of degree four whose weight is at most 1.25 times the weight of a minimum spanning tree. These results solve open problems posed by Papadimitriou and Vazirani. Moreover, if a minimum spanning tree is given as part of the input, the trees can be computed in O(n) time. The results are generalized to points in higher dimensions. It is shown that for any d [greater than or equal to] 3, an arbitrary collection of points in DimD contains a spanning tree of degree three, whose weight is at most 5/3 times the weight of a minimum spanning tree. This is the first paper that achieves factors better than two for these problems. (Also cross-referenced as UMIACS-TR-94-1)