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Posted on Tue, May 24, 2011 : 11:48 a.m.

Higher education: Does college make sense any more?

By Wayne Baker

0524 college graduates.jpg

With more and more college grads struggling to find jobs in today's economy, is the rising cost of college really worth it?

Photo courtesy of WikiMedia Commons.

Editor's note: This post is part of a series by Dr. Baker on Our Values about core American values. This week Dr. Baker is discussing the value of higher education, and whether or not college is really worth the cost.

Sunday I attended my nephew’s graduation from a four-year institution of higher learning. He’s one of the lucky ones: He managed to graduate without a mountain of debt. A combination of scholarships, part-time jobs, and frugal living saved him.

But the typical college graduate takes home $23,000 of debt along with the sheepskin, according to the Pew Research Center.

This is the highest it’s ever been.

College is more expensive than ever. Going to college now costs three times more than it did 30 years ago — and that’s after adjusting for inflation. Is it really worth the expense and — in many cases — the debt burden after graduation day?

Most Americans say no, according to Pew’s new study of the value of college. Almost six in 10 Americans (57 percent) say that the American system of higher education does a poor or only fair job of providing value to students and their families for the money spent. About a third (35 percent) say it provides good value. A mere 5 percent says higher ed delivers excellent value.

This isn’t an enviable report card.

Despite the mixed grades, almost all parents want their kids to go to college. in fact, 94 percent of American parents with children under college age say they want them to go to college, Pew finds. Yet only 22 percent of Americans believe that most families can afford to pay the college bill.

But cost is one side of the value equation. Earnings is the other side.

How much more money do college grads make compared to high school grads? On average, college grads earn $20,000 more a year than high school grads, according to 2010 Census data analyzed by Pew. A college grad who works 40 years earns $550,000 more than a high school grad who works the same four decades.

This figure squares precisely with the earnings expectations of college and high school graduates, according to Pew’s survey. College grads estimate that they will earn $20,000 a year more than high school grads; those with a high school education expect to earn $20,000 less than college grads.

These are averages. Averages say so much and so little at the same time. If my right hand is in a blazing fire and my left in a deep freezer, on average my temperature is fine. Some high school grads make a ton of money; some college grads don’t make much at all.

But the average earnings dividend of a college education is nothing to sneeze at —that is, assuming a new college grad gets a job in the first place. Many college graduates in the last few years felt lucky to get any kind of paying job.

I know graduates who, despite earning high grades at top universities, had to take jobs at the minimum wage. Hordes of grads couldn’t find the good-paying jobs their elder brothers and sisters found, and instead took work in the nonprofit sector.

Applications to AmeriCorps and Teach for America are at record numbers. And, to the chagrin of many American parents, their college grads are returning to live back home.

If you’re a recent college grad, what choices did you make?
If you’re a parent of a college grad, what was your experience?
Is high school enough formal education in today’s economy?

Are you talking about college costs in your family?
Do you think a college education is worth the price tag?
Was college a better value in the past?

Dr. Wayne E. Baker is a sociologist on the faculty of the University of Michigan Ross School of Business. Baker blogs daily at Our Values and can be reached at ourvaluesproject@gmail.com or on Facebook.

Comments

Dog Guy

Wed, May 25, 2011 : 6:57 p.m.

College was a wonderful investment for me, but I haven't discovered any economic benefit to education per se. My teaching certification is a wonderful substitute for working. Life is good.

Technojunkie

Wed, May 25, 2011 : 1:50 p.m.

Factor in lost wages while in college, the present value of the tuition money paid, and the likelihood that people who most benefit from college are smart to begin with and for most people college looks iffy at best. Throw in lower admissions standards and grade inflation at everywhere but the elite schools to keep seats filled and it's an outright disaster. Yes, some degrees are worthwhile. Others are only appropriate for students with trust funds. Some are outright political indoctrination. Many students would have been better off with an apprenticeship or simply going straight to work. There's nothing magical about a degree. The everyone-needs-to-go-to-college meme looks like a confidence game to me, same as everyone-should-own-a-home and housing-prices-only-go-up.

treetowncartel

Wed, May 25, 2011 : 2:55 a.m.

I have a friend from high school who is making more money than just about any one else I know, and he never received a single college credit. Now granted, he has more work ethic and busted his so called democratic symbol harder than anybody I know, but it was his personality and hard work that built his success, not his courseload, GPA or fraternity allegiances.

BlueBeni

Wed, May 25, 2011 : 1:08 a.m.

Most of college does not need to be this expensive! Students are spending more and more for general education classes. These can easily be taken at a local community college for pennies on the dollar, allowing the student to poke around and find what they truly have interest in. Another large cost of college is when a student spends X amount of years pursuing one program and, suddenly, decides to change majors. This adds to the cost of higher education, and the consequential debt. While I know that community colleges may not be for everybody, I am a strong proponent of attending a community college for at least a year, until you get enough experience in the higher education system to know what program/major you would be best at. This eliminates the extraneous costs of changing degree programs at a more expensive university. Also, getting your general education classes done at a community college offers a smaller class size (usually), as well as stronger support from the teacher both in and out of the classroom.

Basic Bob

Tue, May 24, 2011 : 8:52 p.m.

Does it make economic sense for everyone? Definitely not. However, it opens doors in some fields that would otherwise be closed. You can't be a doctor, lawyer, engineer, or teacher without it. You might not absolutely need it to be a salesman, entrepreneur, or even a parent, but it helps you to know what your talking about!

Bob

Tue, May 24, 2011 : 6:08 p.m.

It may not make sense for all, but, yes, it makes sense.

mentalNomad

Tue, May 24, 2011 : 5:06 p.m.

I am guessing the statistic that college graduates earn $20,000 more than others is skewed the way our country's wealth distribution is-- a few high-earners raise the average while the majority earn much less. College is not for everyone, especially not right after high school. But as everyone feels pressured to go, colleges are being dumbed down while the increased demand drives the price up. It is kind of like when every kid on the team gets a trophy--it does not mean anything if you have one, but it still makes you look bad if you do not have one. And the best players do not get the recognition they should.