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After hearing stories about unemployed college graduates with six-figure student debt loads, Americans may be skeptical about college value and wary about college costs. Recent research shows college remains one of the best investments you can make.
College value versus college cost is often difficult to quantify: how do you place a value on learning? “Higher education is an investment in human capital,” former Gettysburg College President Katherine Haley Will told National Public Radio. College value outweighs “any simple calculation of costs.”
Sources:
John Guthmiller • The Values of A College Education • Oct 02, 1997
Sonoma State University
Sue Shellenberger • Weighing the Value of That College Diploma • Dec 16, 2009
Kim Clark • How Much Is That College Degree Really Worth? • Oct 30, 2008
Breaking the poverty cycle through higher education • Mar 05, 2009
University of Louisville
Other Resources
Conventional wisdom is that college is worth the money because it provides a path to considerably higher earnings than usually can be earned with a high school diploma alone. But is that true?
If you are considering attending college, you likely are at least partially drawn in by the prospect of earning more money when you graduate. The College Board, a not-for-profit association, has long contended that college degrees are worth the money because they pay off over high school diplomas to the tune of $800,000 more in pay over the course of a 40-year career.
However, in recent years increasing tuition costs and a difficult job market have called those figures into question. In an interview with Forbes magazine, Mark Schneider, of the American Institutes for Research, called the calculation “a million-dollar misunderstanding.”
Reduced Earnings Still Higher for College Grads
Taking into account the increasing cost of college, student loan debt, and breaks in employment, Schneider estimated that college graduates earn about $280,000 more than high-school graduates. A researcher commissioned by The College Board in 2007 put the figure at about $450,000.
Most researchers agree that college is worth the money, because graduates, on average, do earn more than their counterparts with only high-school diplomas.
One way to make sure that college pays off for you is to take advantage of grants and scholarships when applying. Carefully read the terms of any student loans you apply for to make sure the terms are favorable. And research average salaries in your desired field so you can deicide how much debt, if any, you are comfortable taking on.
College offers more than just a path to a higher salary–it offers a change to learn and grow. A carefully thought out financial plan can help you achieve that.
Sources:
Jennifer Cheeseman Day and Eric C. Newburger • The Big Payoff: Educational Attainment and Synthetic Estimates of Work-Life Earnings
U.S. Census Bureau
Mary Pilon • What’s a Degree Really Worth? • Feb 02, 2010
Other Resources
With the national economy still fragile and many Americans struggling just to make ends meet, what’s the best way to tackle the high cost of college? Explore a number of strategies to make college more affordable.
Unless you’re a football or basketball high school stand-out with serious scholarship prospects, entirely avoiding the high cost of college probably isn’t possible. However, you can take steps to offset or minimize what you pay for that sheepskin.
According to The College Board, one year of tuition and fees at a private university now cost a whopping $26,273, while that education costs $7,020 per year at the average state school.
Financial Aid Helps with the High Cost of College
2009-10 College Prices • [www.collegeboard.com] • [www.collegeboard.com] • The College Board
Of all undergraduate students, 66 percent received some type of financial aid in 2007-08, with the average amount being $9,100, according to the National Center for Education Statistics.
With careful thought about your post-college career aspirations and some advance preparation, the high cost of college can be made manageable.
Sources:
Fast Facts: Financial Aid for Undergraduate Students
National Center for Education Statistics
Free Application for Federal Student Aid
2009-10 College Prices
The College Board
Other Resources