Is a College Degree Worth It?

Employment rates for new college graduates have fallen sharply in the last two years, as have starting salaries for those lucky enough to find work. What’s more, only half of the jobs landed by these new graduates even require a college degree, reviving debates about the inherent value of higher education.

The starting salary for college graduates in 2009 – 2010 was $27,000, down from $30,000 for those who entered the work force in 2006- 2008, according to a study by the John J. Heldrich Center for Workforce Development, Rutgers University. That’s’ a 10% decline, even before inflation.

According to a Pew Research Center Survey, over 2,100 adults felt this way about a college degree:

•Cost and Value. A majority of Americans (57%) say the higher education system in the United States fails to provide students with good value for the money. An even larger majority—75%—says college is too expensive for most Americans.

•Monetary Payoff. Adults who graduated from a four-year college believe that, they’re earning $20,000 more a year because of their degree. Non-college graduates believe they’re earning $20,000 a year less.  These estimates are very close to the median gap in annual earnings between high school and college graduates, as reported by the U.S. Census Bureau in 2010: $19,550.

•Student Loans. A record share of stude

nts are leaving college with substantial debt. Among those who do, about half say that paying off that debt made it harder to pay other bills; a quarter say it has made it harder to buy a home, and about a quarter say it has had an impact on their career choices.

•For Most College Graduates, Missions Accomplished. Among college graduates, 74% say their college education helped them grow intellectually; 69% say it was very useful in helping them mature as a person; and 55% say it was very useful in helping them prepare for a job or career.

In my opinion, it’s a tough call to say that a person with a college degree today is not better off than someone without one. It’s good to have a college degree for many reasons.  I can qualify that statement by saying that I grew up in an age when fewer people were college bound – therefore, it was clear to all that those who were qualified to attend college, that a college degree was well worth the hard work and financial investment.

Today, one could question the value of a bachelor’s degree as it is very common. We have a massive push by the government to drive all high school graduates, stay at home moms, retired workers, etc. to pursue a college degree. Furthermore, there is evidence that, with better evaluation and preparation, many current and recent graduates would actually have faired better financially in a vocational training program, rather than a liberal arts college. On-line education further tends to “water down” the value of the traditional degree.

It’s a tough job market out there. A college degree will always better position some for fewer hard knocks and long term security.  For others, the return on their investment in a college degree, especially one leveraged heavily by loans and debt, may just not be worth it.