Is it worth investing the time and resources in obtaining a college degree?
Ultimately, whether college is worth the cost will depend on factors like your career and life goals and whether you'll need to take out student loans. While a college degree is still associated with greater earnings and wealth over a lifetime, the upfront cost is not worth it for many students.
According to a report by the Institute for Higher Education Policy, 83% of schools — serving 93% of undergraduates — provide an ROI within 10 years. That means that within 10 years, students recoup what they would be making with a high school diploma plus the cost of their college degree.
Ultimately, you're planning for your future career and finances, so knowing as much as possible in the beginning of your educational journey can literally save you money and time in the long run.
Some people think that those who choose to enter the workforce after college are going to make more money overall than those without a degree. In reality, those who have a bachelor's degree earn, on average, $1 million more over the course of their careers than those with just a high school diploma.
College grads will make more on average.
Those with a bachelors degree can expect to earn an average of $52,200 a year over their career, a difference of $21,800 a year. The gap grows when higher education is pursued, with those at the master's and doctoral levels earning an average $62,000 and $89,000 respectively.
College graduates still enjoy higher earnings than the average U.S. worker. The U.S. Bureau of Labor Statistics (BLS) reports that in 2022, bachelor's degree holders took home a median wage of $1,432 per week, while workers with just a high school diploma earned only $853. That's a difference of 68%.
- Learn about yourself. Going to college is a life-changing decision that offers numerous benefits. ...
- Higher earning potential. ...
- Increased job opportunities. ...
- Networking. ...
- Learning hard and soft skills. ...
- Job satisfaction. ...
- Security. ...
- It fulfills requirements.
| Pros of Attending College | Cons of Attending College |
|---|---|
| Higher earning potential | High cost |
| Access to more jobs | Opportunity cost of time spent not working |
| More learning opportunities | The availability of high-paying, no-degree jobs |
| Networking opportunities | Underemployed college graduates |
The benefits of free college include greater educational access for underserved students, a healthier economy, and reduced loan debt. Drawbacks include higher taxes, possible overcrowding, and the threat of quality reduction.
Tuition costs have risen at a faster rate than the costs of medical services, child care, and housing. Towering tuition costs prevent many students from pursuing a college degree. And for those that do pursue a degree, it often means shouldering a debt burden that lasts decades.
Is college a lousy investment?
A more correct nuanced view is that obtaining a college degree is a good investment for a significant subset of the young American population. However, for another large segment of the population, it is actually not a viable proposition on strictly economic grounds.
The traditional four-year degree may no longer be the default path to success, but higher education will continue to evolve. Degrees will still hold value in certain fields, especially those that require specialized knowledge and expertise.
So many people find success in life without a college degree. Many are actively pursuing careers they love and are passionate about, with other types of education under their belts. Although you may feel pressure to get a college degree, it's important to remember that it is not necessary for success.
In addition to having higher earnings and lower rates of unemployment, college graduates are more likely to own a home and less likely to be in poverty or need social services, according to findings from the Public Policy Institute of California (PPIC).
Thus, while the benefits of college still outweigh the costs on average, not all college degrees are an equally good investment. The economic benefits of a college degree can be thought of as the extra wages one can earn with a college degree relative to what one would earn without one.
College can help increase your earning potential
Simply put, college graduates earn about twice as much as their non-college-educated counterparts. College graduates are also less likely to be unemployed and have better health insurance and retirement benefits.
So it's pretty clear. The big picture: a college degree still offers a strong return on investment for most people. It's a shot at better jobs, more money, and a happier, longer life. Of course, the upfront costs are still a major challenge.
Higher lifetime earnings
In fact, education beyond high school is linked with an increase in pay at every level. Some studies have shown that bachelor's degree holders have median lifetime earnings of $2.8 million dollars, which is over $1 million more than those with a high school diploma alone.
Though Americans are questioning the value of college, research shows that people with college degrees typically earn nearly 75 percent more than those without them. Jobs that require a degree also often come with a range of benefits: flexible schedules, paid time off and sick and parental leave.
- College uses a fairly standard academic structure for education that not every student thrives in. ...
- Not every career choice is best learned in an academic environment. ...
- The “well-rounded” approach of colleges can be counter-productive with certain technical careers. ...
- College is expensive.
How college helps your future?
According to the Bureau of Labor Statistics, workers with higher levels of education “typically earn more and have lower rates of unemployment compared with workers who have less education.” Over a lifetime, reports show that college graduates will make 84 percent more than those with a high school diploma.
Research suggests that the more education you have, the happier you tend to be. In a survey that utilized data from the U.S. General Social Surveys, 94% of people with a bachelor's degree or more reported feeling happy or very happy with their lives overall, while 89% of high school grads said the same.
College enrollment among young Americans has been declining gradually over the past decade. In 2022, the total number of 18- to 24-year-olds enrolled in college was down by approximately 1.2 million from its peak in 2011. Most of the decline is due to fewer young men pursuing college.
Yes, experts say: 'There's not a better substitute for college' The data in support of a college education is strong. College graduates tend to have better career and financial outcomes.
If you are already passionate about — and have a lot of knowledge about — a specific field or industry, you might consider skipping college altogether and jumping into that business. Starting your own business takes a lot of hard work, but it could mean that you get to be your own boss and work in an industry you love.
