In recent years you hear people say things like “college isn’t worth it” or “not enough payout”. It is true that tuition costs have risen to record levels. The number of people borrowing to cover costs has also increased. However, a new report suggests college degrees valuable despite costs.
College Degree Valuable Despite Costs
By calculating profitability of an expense, it appears as though a college degree is valuable. The report shows that the value of a bachelor’s degree remains high even today. Back in the 1970s the value of a bachelor’s degree was $120,000. Around 1980 that value fell quite a bit. Since the drop in the 1980s, the value has tripled to around $300,000. Today, the value of a bachelor’s degree hovers between $250,000 and the record $300,000.
The report also looked at how long it takes a graduate to recover the costs associated with paying for a bachelor’s degree. Today, it takes a person less time to recover the costs of the degree than in years past. This means that even though it costs a lot more to get a degree, it doesn’t take as long to get those costs back. So even today a bachelor’s degree is valued high. Further, those with degrees have better protection of their wages.
That seems odd considering tuition is getting more expensive. However, it makes sense when you think about the bigger picture. Yes, getting a college degree is expensive. But, people without degrees are far more likely to have their wages drop over time than those with a degree. Basically, getting a degree is an investment in the future. Pay money now for the degree and recover it slowly over time. The reward is better wage protection for the future and a better likelihood of higher wages overall.