Is the Cost of College Worth It?

in Education by aftonforrester — August 11, 2011 at 8:53 pm | 0 comments

Deciding If You Should Get That Degree…Or Not

The economic news of the day is decidedly poor.  Unemployment has risen above 9%, wage gaps continue to increase, median income has dropped by over 10%, and average costs of living continue to soar.  In the past the answer to these problems always seemed to lie within the “hallowed halls” of a higher education.  Those with college degrees, we were told, will earn hundreds of thousands more in their lifetimes.  But with tuition costs rising steeply, employment rates falling sharply, and consumer debt on the rise many are now asking if the age old adage still rings true.  Is college really worth the expense?  According to new research by Georgetown University’s Center on Education and the Workforce, just released this month, the answer is yes – and perhaps more now than ever.

Graduation in the Spotlight

According to the study, led by Anthony Carnevale, Stephen Rose, and Ban Cheah, there is a direct correlation between years of completed education and lifetime earnings.  “On average, there are significant differences in how much is earned based on how much education is completed, ranging from high school dropout to doctoral graduates.”

Data available in 1999 showed that employees holding a bachelor’s degree earned 75% more over a lifetime than employees with only a high school diploma.  Carnevale, Rose, and Cheah were able to extrapolate this data and combine it with new research and statistical analysis to show that now the earnings difference between those holding a bachelor’s degree and those with only a high school diploma has risen to 84%.  In some fields this translates to over one million dollars more over a 35 year work-span.

A Degree Is More Important Now Than Ever

This data shows that not only is a college degree worth the expense, but it is becoming more valuable over time.  Speaking to news reporters at a press release Carnavale stated, “lifetime returns for a post-secondary education are, in fact, increasing and differences in attainment count for very substantial differences in lifetime earnings. For example, a worker with a master’s degree can expect to earn about $400,000 more than a worker with a bachelor’s degree. And a person with a doctoral degree can expect to earn nearly $600,000 more than a master’s degree holder, over a lifetime.” And in some highly technical fields these differences top the seven digit category.

However, even with these statistics, many still wonder.  True, they say someone with a college degree will earn more money, but only if she can actually find a job.  And if she does find a job she has to stay there long enough to move up through the pay scale rankings.  Even then, will the lower salaries offered today exceed the debt one must acquire in order to graduate with an advanced degree?  These are valid questions.  Education debt is at its highest levels ever, and so are overall costs of living.

College Definitely Makes A Difference

The study by Georgetown University also addressed these issues.  “Carnevale emphasized that the ‘substantial’ difference in earnings between a worker with a high school diploma and one with a bachelor’s degree would more than cover the cost of attending college.”  While it is true that education costs have risen steeply, so have opportunities for financial aid, scholarships, and grants.  Many companies will now offer to offset all or part of the cost of obtaining a higher degree if the student agrees to remain an employee for a certain number of years.  This way both parties benefit.  An employee is guaranteed a job, a higher education, and a higher pay rate, while the employer is guaranteed a high quality employee with a high level education.

In fact, the study showed that not only can the costs of a higher education be more than covered by future wages, but educational costs can actually be lower now than ever before if students take advantage of the many opportunities for financial aid available through both government and private organizations.

The Future Calls For A More Educated Work Force

Researcher’s affiliated with the study made the statement that “America’s future depends . . . on having college-education workers.”  For this reason it is more important now than ever to increase the number of students attending and graduating from institutions of higher learning.

The Georgetown University researchers paired their research with additional studies underwritten by the Lumina and Gates foundations.  These two foundations have been at the forefront of the fight to improve statistics showing how many students graduate compared to how many students enroll. Right now the U.S. falls well behind the rest of the world when it comes to college completion rates.  The goal of the Lumina and Gates foundations is to have “60 percent of Americans holding a high-quality college degree or credential by 2025.  That would be an almost 50 percent jump from the current percentage, which places the U.S. tied for 10^th in the world in post secondary education.”

Colleges Need to Adapt

If this goal is to be achieved then colleges will have to “move with the times”.  Colleges,” according to Merisotis, “cannot continue to conduct business as usual, with [an] emphasis on seat time (the amount of time spent in a classroom to reach a credit).  Colleges must be more flexible, more student-centered, accountable and accessible,” he said.

Colleges seem to be listening.  More and more universities offer a range of scheduling options, varying from traditional classroom experiences to self-taught online courses, to webinar seminars.  Colleges and universities throughout the United States are becoming more and more accessible to more and more students with non-traditional learning needs.

It seems clear that this and other studies – along with daily examples – prove that a college education is most certainly worth the cost.

 
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