Corinne Loth
In a time of college applications and decisions, finances and student debt are likely at the forefront of high school seniors’ minds. And for those applying to multiple universities of differing costs and calibers, it’s important to review both the benefits and opportunity costs of attending an expensive institution, specifically an Ivy League school (listed below). There’s a continued debate about whether a degree is just a degree, or if it is indeed worth it to go to a more prestigious college in order to put yourself ahead of the competition when seeking a job. To measure this phenomenon, it’s necessary to look at annual tuition and fee rates at public, private, and Ivy League colleges, starting and projected incomes of graduates, and additional non-monetary factors.
It is commonly known that tuition prices for these Ivy League colleges are greatly increased compared to that of public and private universities. There are also multiple fees associated, including books and supplies, room and board, and additional living expenses. A 2016 calculation by Investopedia accounted for the average annual 8% inflation rate of college tuition and reported that for 2019, the average estimated cost of tuition and fees for one year of undergraduate education at a public university would amount to $30,310. An undergraduate Ivy League student would instead pay approximately $79,362 in tuition and fees for one year--a $49,052 difference. Though this inflation rate is not set and does fluctuate, the difference is startling nonetheless. These exclusive Ivy League schools defend their higher tuition and fee rates by arguing that additional opportunities are available to their students such as a greater network for internships and jobs, name recognition, research programs, etc. Yet, public university UW-Madison also hosts renowned research projects (ranked 8th in the nation for the volume of research), and over 825 student organizations, similar to the statistics of other public colleges.
Furthermore, a 2015 review by payscale.com used the annual wage growth rate of 6.33% (reported by the US Bureau of Economic Analysis) to determine the starting salaries for graduate students. The estimated average starting salary for a 2019 public university graduate was $79,927. An Ivy League graduate could expect to make a starting salary of $85,676 respectively--a $5,749 difference. Inflated at the same rate, in 2029 Ivy League graduates can expect to make $10,622 more yearly than public university graduates, with private university graduates making even less. Despite this salary increase, it’s important to note that student loan debt interest rates are also affected by inflation, causing debts to be harder to pay off. According to the graph below by Money Crashers LLC, both Ivy League and private college graduates are expected to end up underwater, causing them to default on their student loans, and requiring more sacrifices to eliminate these debts. Ivy League colleges argue that the decreased acceptance rates and attendance leads to a lower supply of these graduates, but their excellence leads to a higher demand for these individuals, a type of scarcity that creates the ideal combination for occupational success. However, though the demand for labor is inelastic, the demand for Ivy League alumni workers is elastic because there is no definite measure of any improved work ethic or productivity of these graduates compared to those from public or private universities.
Ivy League schools are known for distinct merit and for nurturing the brightest minds both in and out of the classroom. These universities can give students a network of accomplished individuals as well as opportunities that curate success. Yet, college is not a public good, and thus there are marginal costs to consider. Compared to public and private institutions, Ivy League colleges have heavily increased tuition and fee prices, with only slightly increased starting and projected salaries. Though seniors should select a college based on what feels right to them and fits their personal criteria, it is clear that the investment of an Ivy League education is not returned financially. Furthermore, public and private universities still equip students with extracurricular experience, a network of graduates, and job opportunities with incomes to sustain an appropriate standard of living. Thus, a trade-off should be made by students to favor colleges outside of the Ivy League.
Works Cited
Brownlee, Adam P., “Is an Ivy League Degree Worthwhile?” Investopedia, 29 May 2019, https://www.investopedia.com/articles/personal-finance/112815/ivy-league-degree-worth-it.asp.
Kennedy, Quinn, “Ivy Leagues are Overrated,” Buffalo Academy of the Sacred Heart, 20 April 2019, https://shatorch.com/1572/editorials/ivy-leagues-are-overrated/.
Schrage, Andrew, “College Admissions Scandal Revisited,” Money Crashers, May 2019, https://www.moneycrashers.com/ivy-league-college-education-worth-cost/.
Shemmassian, Shirag, “Is Attending an Ivy League Worth It? The Real Benefits of an Ivy League Education” Shemmassian Academic Consulting, 30 March 2020, https://www.shemmassianconsulting.com/blog/is-ivy-league-worth-it.
While I'm not really surprised about how Ivy League's are not worth it, I wonder what the value of saying you attended an Ivy League brings you. I've heard a saying that college isn't about education anymore, it's about making connections for your career. And having a prestigious school on your resume probably makes finding a job a lot easier in a field you're passionate about. So I wonder if that benefit outweighs the cost of paying an exorbitant amount for an education similar to a public institution.
ReplyDeleteI can see why Ivy League schools aren't worth it but when it comes to getting a job, bunisesses would look at someone more who went to a school such as Yale or Brown vs someone who went to a normal public college such Oshkosh or Whitewater. It sounds good when you say you attended an Ivy League school too. Overall there's better benefits going to these schools because you can have more job opprotunities.
ReplyDeleteIvy League schools hold a title that do provide a step up for people when applying for jobs, but at the same time it is very important to think of the trade offs that a student will have to make. Students will need to be working a lot during college in order to try to battle some of the tuition costs rather than relying on loans. One thing that should also be taken into consideration is the amount of scholarships that an Ivy League students receives compared to a student at a public or private university. Though I do wonder just how long it might take an Ivy League student to pay off their student loans even with scholarships? I assume it will take many years, so that makes me think that for most people attending an Ivy League school would have more negative outcomes than positive when it comes from an economic stance.
ReplyDeleteWhile from the data you provided I see that Ivy leagues would not be worth it, I also see Ivy League schools to be a benefit from a societal standpoint, as one at an Ivy League would be looked at as extremely smart. I did however change my prenotion about Ivy Leagues because of your student loan repayment timeline that accurately displayed your point of view from the economic standpoint. Yes, indeed Ivy League or school outside of that realm is a trade-off, and you discretely changed my mind to agree that one would ultimately benefit more from not attending an Ivy League school.
ReplyDeleteI agree with you that an Ivy League education is a bit over hyped by society. Because of this, the general assumption is that those who attended ivy league institutions are above the rest, and therefore more likely to get better opportunities. The offerings of an ivy league college is not necessarily unique to that institution, as you demonstrated with UW-Madison. While tuition is higher at ivy leagues, however, I wonder how much money is scholarships is given to students annually. The reason I ask is because many private institutions have extremely high tuition rates, but for many students that number is cut in half with standard scholarships. I'll bet that the Ivys so that as well. I also really like the idea that Aiden mentioned above, because I hear it all the time that it's not about what you know but rather who you know, and I agree that a more prestigious college may have better opportunities for making connections especially for those who have extremely large goals. Overall, I think that Ivys are the right fit for some people, but yes, the costs outweigh the benefits for the average person.
ReplyDeleteIn general, the college you graduate from initially impacts your job opportunities and starting wages, but is is ultimately how well you do in those jobs that get you better wages. It also depends on the degree you get from an Ivy league school that affects your opportunities. Some degrees will open up jobs that aren't competitive, in which case, going to an Ivy league school is not worth it. I don't think the costs of attending an ivy league school is worth it. Simply, to an employer, graduating from an Ivy league school shows dedication hard work, and a guaranteed scholarly education. Graduating from college does not guarantee skills, or work experiences, which work places highly value. Getting a degree from an ivy league school does not show how well you will do a job, and in the end, employers value most how well you can work a job, and give you higher wages. The chances of an employee who graduated from an ivy league school that can do their job well, is higher, but is it really worth a debt that you can end up paying for life?
ReplyDeleteI thought that this was very interesting because I had no clue the price difference between a public university and an Ivy League school. When you put that into perspective even though Ivy League schools are well known and usually considered the most prestigous schools to get into it is important to note the price difference of 49,000 dollars that you pointed out. It also helped to make a not how Ivy League graduates only make about 10,000 dollars a year more after graduation than public school graduates. To me it makes it seem as if it is almost pointless to go to a Ivy League school because in both scenarios you will be recieving a good education, but to go to an Ivy League school they will charge you almost 4 times the cost of a public univesity. I thought that this blog post was really good because I do not think that many students are aware of these statistics and the price difference between a public and ivy league university.
ReplyDeleteAlthough the tuition price difference is quite great between the Ivy League schools and the public universities, you don't really go to Ivy League schools because of the price difference. Also, since the salary difference is not that big for a graduate that went to an Ivy League school compared to a public university or other private universities, the job opportunities, the connections, and other research opportunities is what these Ivy League schools offer. These students go for the connections with other peers and their professors, since they are all the best of the best in our country, they can use these connections later in their careers knowing that these people are really good students and really good people in general.
ReplyDeleteThis was a very interesting read. I had always thought that Ivy League schools were the best of the best, and that if I ever had the chance to get into one, I should. However, this article helped affirm my thinking that maybe Ivy Leagues aren't the best. Sure, they have bright minds and great opportunities, but I'll be left shouldering student debt. Also, is a degree just a degree...? I'm starting to believe it is. And now, hearing that the return on investment for attending Ivy League schools isn't that great, I don't think I will care much about not making it to Harvard.
ReplyDeleteFriendly reminder that in 2019 a group of rich people tried to pay off the admissions offices of some Ivy league schools to let their unqualified children in. The fact that this could have succeeded should be reason enough to not like these schools.
ReplyDeleteI definitely think that high schoolers strive for Ivy Leagues as more of a social status in comparison to an educated decision about their future. Although these schools look good on paper, employers are worried about a multitude about you as an individual-not where you spent the last 4 years. The average graduate student has a debt of about $30,000 while the average Ivy League student has about 1.5x that with $75,000. Unless your parents have enough money, which most Americans don't, an Ivy League doesn't seem worth it unless that's your burning desire.
ReplyDeleteAs students who are looking at colleges now, I liked how you were able to bring a relevant topic in for your blog topic. This may sound weird, however I liked how you also included things like food, and room/board in talking about the price, because sometimes I think those things are forgotten, but are important. When you talked about occupational success, that was something that I hadn’t thought about. I liked the visual that you included in your post, because it helped me envision the different loan balances between private, public, and ivy league schools.
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