Value of Earning A College Degree
Source: ERIC Clearinghouse on Higher Education Washington DC.
In response to the escalating cost of higher education, many people have begun questioning the value continuing their formal learning beyond high school. Questions as to whether the high cost of tuition, the accumulation of thousands of dollars in debt, and the opportunity cost of choosing college over full-time employment weigh heavy on the minds of those who are wondering if the investment will be worth it in the years to come. The expense of high-priced tuition and other college fees poses an especially significant threat to families living on a low-income, already struggling to make ends meet.
In an effort to decide whether or not higher education is actually worth the investment, facts regarding the value of higher education and the rates of return on the investment both to the individual as well as to society should be examined.
The Economic Value of College Education
A considerable amount of support has been given to the wide-spread belief that the rate of return on an investment in higher education is significant enough to validate the financial burden that may come as a result of pursuing a college degree. On average, college graduates do earn more than high school graduates, although the earning differentials between the two may vary over time. According to the Census Bureau, throughout their working adult life, high school graduates earn an average of $1.2 million, while those who have earned an associate's degree earn approximately $1.6 million, and individuals who have a bachelor's degree earn around 2.1 million (Day and Newburger, 2002)
A realistic look at the cost of a college education can be uncovered through the comparison of the sizeable differences in lifetime earnings. Today, about 80 percent of all students enroll in either a public 4-year or 2-year college. A U.S. department of Education report entitled, Think College Early, estimates that a full-time student attending a public 4-year college spends an average of $8,655 each year on in-state tuition, room, and board (U.S. Dept. of Education, 2002). It is also estimated that a full-time student attending a public 2-year college spends an average of $1,359 each year on tuition alone (U.S. Dept. of Education, 2002).
These findings back the argument that, although the cost of pursuing higher education is considerable, given the large variation that exists in the earnings among those who earn a bachelor's degree and those who do not, the individual rate of return on the investment of higher education is significantly high enough to justify the cost.
Other Benefits of College Education
Many advantages above and beyond an increased earning potential are enjoyed by college graduates. Published by the Institute for Higher Education Policy, a 1998 report, on the individual benefits that college graduates take pleasure in, stated that college graduates enjoy an improved quality of life for their children, higher levels of saving, improved consumer decision making skills, increased personal and professional mobility, and more hobbies and leisure activities (Institute for Higher Education Policy, 1998). A report published by the Carnegie Foundation lists individual benefits which result from a higher education to include the tendency to become more rational, more open-minded, more consistent, more cultured, and less authoritarian. The report goes on to state that these benefits are additionally passed on to a graduate's posterity for generations to com (Rowley and Hurtado, 2002). College attendance and completion of a bachelor's degree program has also been shown to "decrease prejudice, enhance knowledge of world affairs and enhance social status" while at the same time increasing job and economic security (Ibid.).
Studies of college graduates and their families have consistently shown a positive connection between completion of higher education and good health, for both the graduate and their children. As a matter of fact, "parental schooling levels (after controlling for differences in earnings) are positively correlated with the health status of their children" and "increased schooling (and higher relative income) are correlated with lower mortality rates for given age brackets" (Cohn and Geske, 1992).
College Attendance vs College Completion
In a report entitled College for All? Is There Too Much Emphasis on Getting a 4-year College Degree? Fredland and Boesel estimate that approximately 600,000 students withdraw from 4-year colleges each year without ever receiving their bachelor's degree. Those who fail to complete their college education most often earn less than those who go on to complete college degrees because they get fewer years of education. Also, they are inclined to earn less than or approximately the same amount as 2-year college students with a similar amount of education. What's more, 2-year college students show roughly the same increase in tested cognitive skills for each year of their college attendance as 4-year college students. It has also been noted that students attending a 4-year colleges spend more money on tuition and are more apt than 2-year students to have debt due to student loans. (Boesel and Fredland, 1999, p viii). It is concluded by the authors that high school graduates, who have reservations or uncertainties about attending college or who possess only modest abilities, should consider attending a 2-year rather than a 4-year college. Following this advice, the authors believe that such students would most likely go on to reach the same earnings and cognitive skills, that they otherwise would have gained, at a lower cost and with less debt. Students who do choose to enroll in a 4-year college or university should do everything in their power to graduate in order to get the most out of the significant time and monetary investment they have made ( Boesel and Fredland, 1999, p ix).
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