Why might college be a good financial decision despite the cost? (2024)

Why might college be a good financial decision despite the cost?

College graduates still enjoy higher earnings than the average U.S. worker. The U.S. Bureau of Labor Statistics (BLS) reports that in 2022, bachelor's degree holders took home a median wage of $1,432 per week, while workers with just a high school diploma earned only $853. That's a difference of 68%.

How does college benefit you financially?

College graduates get higher-quality jobs

Among full-time workers, college graduates are more likely to have jobs that offer paid vacation, health insurance, retirement, and flexible work arrangements. These forms of non-wage compensation help provide greater financial stability and security over the long run.

Is college worth the cost factors to consider?

Despite the high costs associated with going to college, it can be worth it for many people. You may very well find that your investment pays off in the long run, by allowing you to build a well-paid, successful career. Not to mention the invaluable life experience and connections you gain at school.

Why is it valuable to consider the costs of obtaining a college degree?

Obtaining a college degree can be expensive, but college graduates usually earn more money during their lives than those who do not finish college. The high costs of attending college should be viewed as an investment that pays off later in life.

Is a college education worth it pros and cons?

Quick summary. Bachelor's degree graduates in the U.S. earn around 40% more than high school graduates. Colleges are a great space for networking with experts across many fields. Colleges tend to me more expensive and more rigorous than high schools, which can be stressful.

Do you think it is worth going to college despite the costs?

For many people, going to college is worth the cost. College graduates typically earn more money than people who don't have a degree. Many career paths also require a degree.

Is college a good financial investment?

A new analysis of the costs and benefits of attending college demonstrates that a college degree is still an excellent financial investment. The study was conducted by three economists associated with the Federal Reserve Bank of St. Louis: Scott A. Wolla, Guillaume Vandenbroucke, and Cameron Tucker.

Are the benefits of a college degree worth the financial cost?

Increased Earning Potential for College Graduates

Studies show that those with a high school diploma or GED earn approximately $36,000 per year, and those with a bachelor's degree earn a median salary of approximately $60,000. That's almost double the yearly earnings!

What are the pros and cons of free college?

The benefits of free college include greater educational access for underserved students, a healthier economy, and reduced loan debt. Drawbacks include higher taxes, possible overcrowding, and the threat of quality reduction.

How does college cost affect students?

With ballooning student loans, graduates tend to delay making major life decisions, such as buying a home, getting married, or having children. Other effects of rising college tuition include students enrolling at less expensive community colleges or dropping out of college altogether.

Why is the cost of college a problem?

Some point to high demand—as a college degree became more necessary for economic success—and fancy amenities. Others argue that growth in federal financial aid actually drives price increases, with colleges pegging their tuition to how much aid is available.

What are the cons of free college?

The “cons” include: overcrowding, wasted opportunities, and money. Better access to education: College is expensive with or without financial aid. Many people can't afford to go to college as badly as they want.

What costs should be considered when deciding on a college?

Understand actual cost of attendance numbers.

Do tuition and fees change based on number of credit hours? Are students living in residence halls required to pay for a more expensive meal plan? Are the average transportation or living expenses high or low for your situation?

What are two cons of going to college?

Is college worth it in 2024?

Yes, college is still worth it: The wage gap between recent college and high school grads has been widening for decades, and grew even more last year, per new data from the Federal Reserve Bank of New York.

Why should college be cheaper but not free?

Another argument against “why should college be free” is the idea that quality could dip. With potentially less money going into colleges and universities, schools may find it more difficult to offer top-quality education opportunities for their students.

Does going to college make you more money?

College-educated workers enjoy a substantial earnings premium. On an annual basis, median earnings for bachelor's degree holders are $36,000 or 84 percent higher than those whose highest degree is a high school diploma. The earnings gap between college graduates and those with less education continues to widen.

What are the pros and cons of going to college?

What are 2 benefits of going to college and getting a degree?

Can a college student be financially stable?

Sticking to a budget and opening a savings account can help you stay financially secure. If you've lost your job, consider temporary alternatives like part-time work and unemployment benefits. Campus and government resources can help students get back on their feet and maintain stability.

Is saving money for college a financial goal?

Long-term financial goals (over five years) may take several years to accomplish and, as a result, require longer commitments and often more money. Examples might include buying or paying off a home, saving for a child's college education or a comfortable retirement.

How does free college benefit the economy?

Free College Would Drive Economic Growth

This springs up the question, “Should higher education be free?" In different types of economies, as college students graduate without debt, this would give them the ability to earn, save and spend immediately, which could stimulate the economy.

What are the effects of free college?

For example, free tuition would do little to solve another important problem in higher education – low rates of degree completion. Lower prices do nothing to help overcrowded and underfunded public institutions. A major concern is that states lowering tuition to zero will balance their budgets by cutting spending.

How would free college affect society?

Long-Term Societal Improvements. The entire community gains from increased higher education participation. Localities with a high concentration of college graduates tend to be healthier. Not only that, but these regions typically have lower crime rates and fewer people in need of assistance from government programs.

How many people avoid college because of cost?

Based on research from ThinkImpact (2021), 38% of students admit to dropping out because of financial pressure. Provided the increasing expenses of higher education as well as the difficulty of finding scholarships, grants, and financial aid, low-income students often cannot keep up with university demands.