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- College can be worth the cost, time, and commitment, though numerous factors should be considered.
- You'll get a better financial return on investment with certain degrees more than others.
- Determining the true price of college is hard, as all schools present costs and aid differently
The potential benefits of college
Increased earning potential
Research shows that a college education is linked to higher earnings over your lifetime. Higher education is correlated with better pay at every level. And a bachelor's degree is worth $2.8 million on average over a lifetime, according to a Georgetown University study.
Bachelor's degree holders earn 31% more than those with an associate's degree and 84% more than those with just a high school diploma.
Career advancement opportunities
Since the economic recovery following the 2008 recession, degree holders have seen increased and better job opportunities than their peers without degrees:
- Since then, Bachelor's degree holders have gained 3.8 million jobs, while those with only a high school degree have gained 80,000.
- 95% of jobs created have required at least some college experience.
- College grads have access to 57% more opportunities than those without a degree.
Personal growth and development
College is where you develop not only your education, but also your personal skills and knowledge. Higher education helps develop communication and time management skills. You learn how to work as a team and be adaptable, resolve conflict, and adopt leadership and problem solving skills. These are soft skills that can't be found in textbooks.
Network building
The opportunity to network and meet people who could become of high importance throughout your career is one of the key benefits of college. An estimated 85% of jobs are found through networking. Networking is also good practice for learning to socialize and communicate appropriately and professionally.
The cost of college
Tuition and fees
The cost of college has been rising for decades, outpacing the rate of inflation. Tuition and fees are higher every year because colleges face increased costs themselves for faculty salaries, campus infrastructure and operations, technology, administration, and more, according to Zach Bromley, a financial advisor at Broadway Graham Wealth Partners.
"This gets passed on to families through higher sticker prices," Bromley says. "This trajectory is problematic, making college less accessible and affordable for many families. Students are taking on more debt to finance their educations."
Student loan debt
The financial burden of repaying student loans can hinder borrowers' ability to save, invest, or purchase homes, says Andrew Latham, a CFP® professional. The stress associated with hefty debt can also adversely impact mental health.
"On a broader spectrum, elevated levels of student loan debt can dampen consumer spending and delay financial independence, which has wider economic ramifications," Latham says.
Besides tuition, other costs include textbooks, housing, and supplies.
"The cost of textbooks has surged over the years, while housing expenses vary widely based on location, with both on-campus and off-campus housing presenting a significant cost," Latham says. "Furthermore, students incur additional expenses for supplies, lab fees, technology fees, and other miscellaneous costs, which can add up quickly. It's crucial for prospective students and their families to meticulously budget and explore all available financial aid and scholarship opportunities to alleviate the financial impact of these associated costs."
Opportunity cost
While tuition costs have risen sharply and outpaced inflation in recent decades, the difference in earnings between workers with and those without college has also increased.
The cost of a college degree is immediate. The benefits can take time to see and must be considered over a lifetime.
Other factors to consider
Your career goals
Going to college can be very expensive. And the return you get on that investment isn't guaranteed. It will depend greatly on the major you choose, your career goals, financial situation, and many other factors.
There's plenty of financial aid available for most students, though it can be difficult to get a grasp of just how much that could offset your cost as you start researching schools you might want to attend. There are also options beyond the traditional college degree that can lead to a happy professional experience and a good income.
Alternatives to college
If you decide against four-year college for any reason — even if temporarily — you have plenty of other options.
Gap year
Not everyone is ready for college right after high school. Gap year options may include working and traveling abroad, taking on an internship or apprenticeship, or volunteering, says Suzanne Shaffer, a college counselor.
Community college
Community college can be a smart financial decision, and it could be a good fit for an undecided high schooler who is unsure of what kind of higher education to pursue. It's also a great way to save on tuition if they decide to transfer after completing courses.
Trade or technical school
Trade and technical schools offer specific vocational training for a variety of skilled careers. Most require no more than two years of training.
By 2030, The Manufacturing Institute and Deloitte found thatmanufacturers will need to fill 4 million jobs, 2.1 million of which could go unfilled if more people do not pursue modern manufacturing careers that require skilled work.
Volunteer
Another option for young people is to spend time volunteering, which can help build character and learn the value of service. Many options are available through The Corporation for National & Community Service, The ACE Conservation Crew, and Global Routes.
Military
The military has diverse branches and areas of service and can be a good option for those who aren't sure if they want to go to college after high school. Benefits include a salary, room and board, and paid college tuition through the GI Bill if you decide you do want to go to college after your military service is complete.
Still stuck? Maybe try reaching out to a career counselor.
Career counseling is a process that can help you get to know and understand yourself and the world of work in order to make career, educational, and life decisions, according to Boise State University's career services office. A counselor isn't just about helping to decide on a major and a job. It's a lifelong process as you change, your situation changes and life takes you in unexpected directions.
FAQs
Is it worth going to college just to get any degree?
It's not worth going to college just to get any type of degree. Focus on degrees or skills in demand in the job market.
What are the alternatives to a traditional four-year college?
Some alternatives to a traditional four-year college include community college, online programs, trade schools, and bootcamps.
Is college still worth it with high student loan debt?
Whether or not college is still worth it depends on your career path and earning potential. Careful planning is key.
Christiana Sciaudone is a journalist with almost 20 years of experience writing about everything from equities to corrupt politicians and the business of fashion to environmental issues. Her work has been published in The Wall Street Journal, Associated Press, Vogue Business, Bloomberg and others.
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