The Value of a College or University Degree

With the constant increase in college costs, the value of a degree is being reevaluated by many. Would-be students endlessly consider if the premium fees, massive students loans, and opting for education over employment, would pay off eventually.

Financially burdened families often have a hard time deciding whether college is the right path.

It is crucial to ascertain if acquiring a degree justifies the time and money, and to perform a careful study about the relevance and importance of the degrees considered before deciding on a college.

The return of investment from a college education through various benefits often outweighs the expense incurred in getting the degree. Wage differences between high school and college graduates don’t significantly widen until years of work experience have been gained. However, throughout their career lifespan, college graduates typically earn more than those who only possess a high school diploma.

According to the U.S. Census Bureau, bachelor’s degree holders earn nearly 2 million dollars, associate’s degree holders earn close to 1.5 million dollars, and high school diploma holders earn around 1.2 million dollars throughout their careers.

Boosted earnings across one’s professional journey is just one compelling reason to acquire a college degree. The majority of students enrolled in colleges and universities attend public institutions, which are less expensive than private ones. Annual expenses for students in public colleges and universities, including tuition, books, and living costs, are just above 8,000 dollars, whereas community college students pay around 1,300 dollars for annual tuition.

Indeed, obtaining a college degree can be costly, but degree holders generally earn more over their lives than those who don’t complete college. The steep costs of college should be considered as an investment that yields returns later in life.

Those aged 25 through 64 who were employed at any point during the research period averaged annual earnings of $34,700. Those who never finished high school averaged $18,900, those with a high school diploma or its equivalent averaged $25,900 annually, bachelor’s degree holders averaged nearly $45,400, and those with graduate degrees averaged $99,300 annually. Thus, there is a relationship between higher earnings and advanced education levels.

Work experience is another factor that affects wages. Full-time, year-round workers tend to earn higher wages than part-time or seasonal workers. At the time of the survey, full-time workers made up over 70 percent of the workforce. Full-time employment rates are different amongst diverse groups.

For instance, individuals with college degrees are more likely to be employed full-time than those without high school diplomas. A higher number of men are employed than women as many women choose to stay at home and raise children. Despite a worker’s experience, individuals with more education often earn larger annual salaries.

To understand the labor market without demographic biases, it’s best to evaluate earnings projections based on statistics from year-round full-time workers. On average, college graduates in 2015 earned 56% more than high school graduates. High school graduates earned 40% more than those without a high school diploma.

This trend of higher wages linked to higher education is best understood by noticing the increasing demand for skilled workers in the workforce. During the 70’s, wages for college graduates plateaud due to an oversupply of educated workers. However, recent technological advancements have created a significant demand for workers with specialized skills, increasing wages for educated individuals. The trend has reversed for less educated workers. With labor unions less influential than in the past, wages for those without high school and college education have fallen.

Estimations on lifetime earnings based on varying levels of education present a clear picture of the wage gap between those with a college degree and those without.

According to projections, full-time workers with only a high school degree would earn nearly $1.2 million over a 40-year career. Projections for those without high school degrees approached $1 million. Those with some college credit but no degree are expected to make $1.5 million over a 40-year career, while graduates from associate’s programs might earn about $1.6 million.

Those who completed four-year or graduate programs are expected to earn the most during a 40-year career. Bachelor’s degree holders are expected to earn close to $2.1 million, while master’s degree holders are projected to make just over $2.5 million. It is estimated that individuals with PhDs would make around $3.4 million throughout their careers, and professionals like lawyers or doctors might make about $4.4 million.

What this study exhibits is that individuals with higher levels of education generally earn more throughout their workplace journey than those with less education. Therefore, investing in education often yields returns in the form of higher wages later in life.

Higher education provides benefits beyond just higher wages. Many graduates have the option to work where they wish, have more free time, and enjoy a high standard of living. Some of the most significant benefits of higher education are experienced during the degree program itself.

Students have the chance to learn about diverse cultures and intriguing subjects. They also get introduced to theories and concepts they might not otherwise come across without a college education.

Some studies suggest that many graduates lead healthy lifestyles. As a result, children of graduates often receive instruction about good nutrition and exercise, improving their quality of life and life expectancy.

Societal Benefits of Higher Education
Some studies have identified a correlation between increased morality and college education. For example, research has shown that mothers with a college education spend considerable time teaching their children values and giving them education.

Society as a whole profits from higher education. Benefits include larger tax revenues, increased public knowledge about key issues, and lower unemployment rates.

A recent study shows that nearly 600,000 students leave college every year. Those not finishing college usually have lower salaries than four-year institution graduates and community college attendees. Students at community colleges develop or enhance cognitive abilities as rapidly as students at conventional colleges and universities.

However, tuition varies significantly between 4-year schools and community colleges, with the former being more expensive. Since cognitive skill development improves at roughly the same rate and community college is more affordable, those not entirely committed to graduation should consider community college.

Those who enter four-year colleges or universities should be determined to acquire a degree because of the time and financial investment necessary each year of college.