The escalating cost of a college education is forcing many to question whether or not it’s worth it. If you find yourself asking whether the high cost of tuition, the accumulation of thousands of dollars of debt, and the opportunity cost of foregoing full-time employment for college is really worth it, then consider the following:
According to the College Board, the average cost of tuition and fees for the 2015–2016 school year was $32,405 at private colleges, $9,410 for state residents at public colleges, and $23,893 for out-of-state residents attending public universities.
People attend college for many reasons, but one reason is to boost their earning potential. Let’s take a look at average annual earnings from the United States Census taken from a study of full-time workers:
Without a High School
Diploma: $21,023
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High School Diploma: $31,283
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Bachelor's Degree: $58,613
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Advanced Degree: $83,144
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Over an average 40 year work-life, the person with a four-year bachelor’s degree will earn $2.4 million compared to $1.3 million earned by someone with a high school education. A master's degree holder will earn $2.8 million while someone with a professional degree will earn $4.1 million.
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These statistics show that the “return on investment” is great. A college education is definitely worth whatever sacrifices you have to make in the short-term to get it.
So what about the prospects for the future? According to a study by Professor Robert E. Hall at Stanford University, the differences in earnings will only grow greater in the future. He says the reason is that industries using technology will be hiring the most new people, and their demand will be for college graduates.
For example, it is estimated that within 10 years, most new jobs will be created in the fields of business, engineering, finance and chemistry. Of those new jobs, more than 25% will require a college degree. In industries like hotels, restaurants, manufacturing and mining, the number of jobs will decline. These low-tech fields need only between 7-15% of their employees to be college graduates.
The areas hiring the most new people will be computer science and information technology. These are also the fastest growing college majors. Earnings in these fields have increased and will keep increasing. For example, computer specialists under 30 years old earned an average of $66,000 in 2016, up from $46,000 in 2006.
If you look at job openings, job creations and other forecasts from the U.S. Bureau of Labor Statistics, you can easily see that the job outlook is better for people with degrees. The Bureau also provides statistics and outlooks for every job and profession (click here).
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