College Degree Value Remains High
There has been much discussion about the struggles of today’s college student and graduates. Although the costs of tuition and need for student loans are high, the value of the degree is also. This seems out of place considering all the talk about college “not being worth it anymore”. The fact is that the college degree value remains high.
College Degree Value Remains High
A recent article looked at the value of a college degree in today’s economy. The writers used a tool to calculate the potential profitability. From that, the data shows that the value of a bachelor’s degree hovers around the once all-time high. The value in the 1970s was once $120,000, but fell in the 1980s. Since the 1980s, the value of a bachelor’s degree has near tripled. The high came in the late 1990s where it was valued to be $300,000. Today the value of a bachelor’s degree hovers between $250,000 and the record $300,000.
Similarly, a look at how long it takes a person to recoup the costs of paying for a bachelor’s degree is low. This is a good thing. It means that despite paying high costs for getting a degree, it doesn’t take long to get that money back. The point here supports the high value. Degrees continue to be valued high, but the recovering the costs are low.
So, all that talk about college “not being worth it anymore” isn’t really based on fact. However, that isn’t to say it is wrong. How can the value of getting a degree continue to be high when the tuition costs are skyrocketing? The simple answer is that wages are dropping. Those without college degrees are getting paid much less compared to those with degrees. This means that getting a degree is only valuable to protect you from dropping wages. Basically, having a college degree may not make you more money, but it can keep you from losing money.
Categorized in: News