Part I: There are no easy answers
The very act of purchasing is an affirmative statement that what you get in return is worth more than the money expended. While College offers a number non-monetary intangible values such as knowledge gained and the University experience - the main argument for College, and any other type of higher education or training, is the increase in earning potential.
The Very Big University touts its graduates' successes in the marketplace, citing PayScale.com, claiming that median starting salary for VBU graduates is $46,000.00 starting, and a median $91,600.00 career salary. Politicians and Universities also liked to tout that four-year degrees resulted in a million dollars more earned over the graduate's life although this number has been questioned.
Which School you attend matters. PayScale puts things in starker context. While VBU touts the $91,600.00 median earnings, the obvious question is - compared to what? PayScale puts the cost of attending VBU at $103,900 in 2011. PayScales estimates the additional lifetime earnings over 30 years at $361,600.00 for a 9.1% return. Other schools have worse returns. That's a bit sobering when you consider that the thirty year return on the S&P 500 is 10.8%
In fact, when you consider that the $103,900.00 cost of college does not include the lost opportunity of wages that could have been earned during that period - the return may be even less.
In addition to the School - what degree you obtain also impacts the value of your education. Not surprisingly, Business, Engineering, Computers and Mathematics; and Medical degrees earn more than other degrees. Finally, the numbers can be skewed by graduates who go onto (and complete) graduate studies.
Bottom Line: Don't blindly buy into the College hype that any degree automatically will result in a good return of your time and investment.
What do you think College was worth to you financially?
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