“Is college worth it?” Google searches for this question return over 210,000 results, all reflecting on the same predicament: College tuition and student debt continue to increase. Some college graduates struggle to find work; others are underemployed. Articles, books and documentaries seem to come to the conclusion that bachelor’s degree may not ensure economic success or stability as once was traditionally thought.
“Is college worth it?” said AACRAO Executive Director Mike Reilly. “It definitely is. It doesn’t mean students should not pay attention to debt accumulation, but well-managed earning of a bachelor’s degree is critical for economic success.”
According to The College Board’s report “Education Pays 2013: The Benefits of Higher Education for Individuals and Society,” individuals with higher levels of education earn more and have higher chances of employment. There is a large wage earnings gap between those with and those without a college degree, and the gap continues to grow. In 2011, workers with bachelor’s degrees earned as much as $21,000 more than workers with just a high school diploma.
According to The College Board, the average traditional student can expect to earn enough by age 36 to compensate for borrowing the full tuition and fee amount without scholarship aid. Even with the recession, the unemployment rate for individuals with at least a bachelor’s degree has consistently been about half the unemployment rate for high school graduates. Individuals with a college degree are more likely to have pension plans and health insurance when employed, enjoy higher social mobility and are even more satisfied with their jobs. Data-based reports seem to agree that earnings for bachelor’s degree holders continue to increase, while those with at most some college experience gradually decrease.
Individuals are not the only ones benefitting from a college education. Federal, state and local governments receive increased tax revenues from college graduates. Spending on income assistance and social support programs such as unemployment compensation, SNAP and Medicaid is much lower for individuals with at least a bachelor’s degree.
Degree completion is key to economic success
The payoff of higher education is life-changing, but it is only significant if the individual completes the degree. There is a large gap between college enrollment rates and college completion rates, with attainment patterns differing considerably across racial and socioeconomic groups. Students that fail to graduate on time – or at all – have to bear the burden of paying off large student loans and earning significantly less than their colleagues who completed their degree on time.
“While there is improvement in wages for students earning associate degrees, the real benefits accrue when students completes their bachelor’s degrees,” said Reilly. “It stresses the importance of really focusing on transfer and articulation practices to make sure that students who attend community colleges who want to earn bachelor’s degrees are able to progress and do so after they receive their associate degree. We should continue to make every effort we can to improve the pathway of students from associate onto masters degrees.”
The increasing wage gap between high school graduates and college graduates demonstrates a rapid demand for college-educated individuals in the workforce. A college education is quickly becoming the new normal.
To ensure that the next generations of students receive the full long-term benefits of a college education, institutions and governments need to foster an environment that would encourage timely and affordable degree completion paired with proper workforce development.
Is college worth it? Only increasingly so.
Attend our upcoming Technology and Transfer Conference, July 6-8 in Ft. Lauderdale, FL, to learn about new technological and transfer practices that could impact your institution’s educational attainment rate.
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