The question says it all.
https://www.usnews.com/education/articles/2008/10/30/how-much-is-that-college-degree-really-worth
https://ticas.org/posd/state-state-data-2015
$29K in average student debt at graduation is a little less than the average new car loan.
So, just from a financial ROI perspective, I’d say a college education is still a good investment (all the more so if you can attend with good financial aid.) That’s not even factoring in all the intangible benefits. On the other hand, I’m not sure the USA compared to peer countries is doing a very good job of managing the increasing costs.
I guess it depends on which college you choose and what you’re looking to get out of it.
Our local community college costs ballpark $7,000 per year. It’s absolutely worth the money to pursue an education there.
But what are you looking for? Education for its own sake? Job prep? Something to do after high school? Friends? Each of those is a component of college. “Worth it” tends to be in the eye of the beholder.
I think doing the dollar calculations, premises on past data and limited predictive ability, is a dangerous way to base the decision upon. Everything you read in the economic sphere tells you the day of the unskilled worker is done, and it will only get worse as AI and robotics continue to make inroads on the earning power or even necessity of the unskilled worker.
It is very difficult for me as one of the 'doughnut" families to justify $200-$250 k for an undergrad degree anywhere! Of my 3 kids only 1 will be educated in the US. Having said that, as college costs continue to balloon, applications are at record levels for almost every school. I can only guess the reasons why, more applications per kid as they chase merit$$ and scholarships and increasing numbers of wealthy overseas students. I cannot see how the current system is tenable but for me it wont matter as my kids will be long gone by the time the system corrects if at all.
I’m just about done getting 2 kids thru college & into grad school. If you are middle-class or below &/or your kid is pretty bright, there is no reason to pay sticker price or not graduate in 3 years instead if 4 (for most majors).
The biggest mistake I see on college confidential is people who want significant financial aid but won’t consider colleges in the Midwest or South. They want a good education in a glamorous location at a discounted price. Sometimes you have to be content with getting 2 out of 3.
Second biggest mistake is not shopping around to find colleges which will give them maximum credits for AP exams so they can finish in 3 yrs.
@moooop Thats certainly true, but if your kid is top 10% and an AP scholar you can spend inordinate amounts of time and money researching and applying to many many US schools only to obtain a result the equivalent of a Canadian or UK school which have far greater transparency in terms of entry requirements and cost.
“I guess it depends on which college you choose and what you’re looking to get out of it.”
Exactly.
Whether a university education is worth the cost depends upon a number of factors. Universities vary enormously in cost. In our experience the academic strength of the university is not strongly correlated to the cost. When one very good university costs $15k per year (total price for everything) and another costs $70k per year, the averages aren’t worth much.
It also depends upon what you major in. Some majors (CS, engineering, nursing) give a very high likelihood of a job after graduation. Others (law, medicine) also give a high likelihood of a job, but after more years of school. Other degrees do not come with a high probability of getting a job after graduation.
I think that biggest thing that has changed is that a university education is no longer automatically worth the price. You have to shop around, be open minded about where you go to university, consider the price of education, avoid debt, and take on a major which is compatible with a good long term career choice. With this, then yes it is still worth it.
“So, just from a financial ROI perspective, I’d say a college education is still a good investment (all the more so if you can attend with good financial aid.) That’s not even factoring in all the intangible benefits. On the other hand, I’m not sure the USA compared to peer countries is doing a very good job of managing the increasing costs.”
“$29K in average student debt at graduation is a little less than the average new car loan.”
We often talk about education as though its only function is employment. A word about “intangible benefits.”
In my life, using the German Uncle Sam taught me years ago opened my world to new perspectives, different friends and stranger foods. Exploring concepts in statistics and practicing their application to estimate the very real environmental, social and economic impacts of noise, air quality, crime, income and population shifts as they affect us, our friends, and our greater communities? Is it a benefit when education provides us the tools to better understand these and a myriad of other issues?
How about the excitement of a Mendelssohn violin concerto that would never have been heard. Doesn’t the average citizen deserve a crack at these enriching life experiences or is it just drugs, rock ‘n’ roll and an early departure? A good education offers experiences and opportunities which cannot always be measured in dollars!
In the long run, a new Mercedes is not a substitute for these enriching educational experiences. What good is a great radio if you can’t hear Mendelssohn?
:bz
@DadTwoGirls I second everything you said and would also say that the student is a variable as well. There are students who could potentially “invest” in themself and the education would be worth it. There are students who investing in an “expensive” education would be a waste of money and would put the student into a debt spiral. Grades and intelligence are part of it but so is passion, ambition, direction, desire to work hard etc.
Forbes expressed an assessment on this topic with respect to several “expensive” colleges:
Generally no. I would not pay sticker price to go to any private U.S. university except for those at the tippy top (Standard, etc) unless you come from a wealthy family.
American colleges are so expensive, in part, because of the expectations of American parents and students. Many mention how much cheaper Canadian schools are, especially for Canadian students. At the major Canadian schools you will not find many small freshman classes. You will not find a “supportive and nurturing environment” to quote a parents desire expressed here on CC recently. You will not find much in the way of manicured lawns, elaborate recreation centers or a fully staffed Office of Parental Relations, available to fulfill any parents wish. These things cost money.