More and more people are recognizing that the investment of time and money that it takes to go to go to college can be well worth it in the long run.
Is College a Good Investment? – Earning Potential for College Grads Outpaces Tuition Costs
Although more and more people are realizing that college can be a path to higher earning potential, many are concerned about the rising tuition costs. It is completely reasonable to ask, “Is college a good investment?”
The National Center for Education Statistics suggests college isn’t just a good investment, but it can be a great investment.
Tuition has indeed risen significantly. The average undergraduate tuition, fees, and room and board rates charged for full-time students in two- and four-year degree-granting institutions was $3,101 in 1980-81. By 2006-07, the cost had risen to $15,483. This takes into account both public and private institutions. This is a significant investment, but statistics show that can pay off quickly and significantly.
Is College a Good Investment? – Consider the Return
According to the National Center for Education Statistics, the median annual difference in earnings in 2006 for full-time workers between the ages of 25 and 34 is as follows:
- Males with a bachelor’s degree or higher made $20,000 more than males with a high school diploma or GED
- Females with a bachelor’s degree or higher made $17,000 more than females with a high school diploma or GED
As you can see, even with tuition more than $16,000, it doesn’t take long for your investment in your education to pay off. When you consider this difference in earning potential and extrapolate it throughout your career, the increase in earnings can be extraordinary.