Tuesday, November 13, 2018

Is College Worth Your Money?

Is College Worth Your Money?
Miriam John

As the four year timer set on our high school career slowly ticks to a close and a new four year timer is set in place, it would seem that the majority of our peers will move on to attend college at either a two year or four year university. The pressure for kids to go to college these days has only gotten higher, and we have all been indoctrinated to prepare ourselves for it, so of course it seems frightening when what has been in our distant future is now so near. But while the personal and individually focused benefits of college are still debated, we can at least look at the economic benefits--and losses--of going to college and decide if it is indeed worth your money.



It is no secret that tuitions prices have been rising steadily over the past few decades and that is clearly seen, especially in private colleges, which do not receive grants from the government as public institutions do, thus the cost of their service is far more expensive. In 1988, the cost of attending a four year private school, four year public school and a two year public school was $17,010, $3,360, and $1,700, respectively. On the other hand, those numbers have increased to $35,830, $10,230, and $3,660 for four year private schools, four year public schools and two year public schools, respectively. Those numbers are even larger now including room and board. But what could warrant such a drastic increase? Steve Odland, contributor to Forbes, writes that this is due to the fact that instead of increasing at the average rate of inflation, which is expected, the inflation rate of college education has risen %500. But everything is subject to inflation, even education, so there must be some other reason. Odland goes on to state that in the past few decades it has not just been the inflation of necessities and maintenance, but the salaries of college administrators as well that have increased.

Now that we know why the prices are as they are, we can now look at college and a college education’s effect on the economy and compare them to see if it worth the price. According to research conducted by the Brookings Institution, the average holder of a bachelor’s degree contributes $278,000 more to the economy over their lifetime, and a the holder of an associate’s degree contributes $81,000 more over their lifetime as opposed to the average holder of a high school diploma. But this makes sense as we know the greater the knowledge to a specific and indispensable you become to an employer while anyone can be found and filled to perform menial labor. Because of the need for specified skills or specialization, employers are willing to pay more for someone with a higher education, therefore, those people in turn have more to contribute to the economy when they spend. This brings us to how college itself affects the economy. Expanding job opportunities, increasing America’s competitive nature and supports the ability to increase income are all positive aspects that stem from investing in college education, according to the U.S Department of the Treasury. And while the cons of attending college include accessibility and affordability, strategies such as “income based repayment” have grown increasingly relevant and we see that in an education’s effect on the individual in the long run. Therefore, since the wages for those with a post high school education are higher, they not only combat the temporary struggle of paying for college, but also allow for the economy to grow as America gains an increasingly educated workforce.

So while there may personal and individual reasons to not attend college, it has definitely been proven that there is economic value to attending college if you choose to do it.


Works Cited
Eberly, Jan and Martin, Carmel. “The Economic Case for Higher Education” Treasury Notes, U.S Department of the Treasury, 13, Dec. 2012 https://www.treasury.gov/connect/blog/Pages/economics-of-higher-education.aspx.

Odland, Steve. “College Costs Out Of Control” Forbes, 24, Mar. 2012, https://www.forbes.com/sites/steveodland/2012/03/24/college-costs-are-soaring/#59617f781f86.

Rothwell, Jonathan. “What colleges do for local economies: A direct measure based on consumption” Brookings, 15, Nov. 2015 https://www.brookings.edu/research/what-colleges-do-for-local-economies-a-direct-measure-based-on-consumption/.

“Tuition and Fees and Room and Board Over Time” Trends In College Pricing, CollegeBoard, 2018, https://trends.collegeboard.org/college-pricing/figures-tables/tuition-fees-room-and-board-over-time.


20 comments:

  1. While I agree in that getting a degree and a well-paying job can help to initiate paying off college, the fact of the matter is a lot of the time, huge payments are an intrinsic part of college. So many more people have trouble paying now than they did two or three decades ago, and that's largely due to the massive rise in prices. It's made pretty explicit that you're going to have to put in a *lot* more than what you'll get out of it within a couple years. Many people are still paying off their student loans from when they went to college years ago. Student loans aren't exactly a novelty in this day and age. And yes, you can apply for scholarships but not everyone gets them, and not all of them will cover as much of the expenses as you need them to. And going back to my first point, most people will not have a career going out of college. It's going to take a while to build up enough funds to support both your loans, and a sufficient lifestyle on your own.

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  2. One major issue with such high tuition fees, even though higher education may pay off in the long run, is that people can't afford it coming right out of high school. People from lower income families or who have parents that won't help pay for college are unable to attend the college they wish to, opting instead for a cheaper school or to not go to college at all and instead go straight to working full time. As these prices get higher and higher, fewer people are able to afford it. I think soon we are going to be seeing a bust in the education market due to a storage of students willing to shell out tens of thousands of dollars to continue their education.

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  3. I feel that there are benefits to choosing many different paths after high school. Going into the military, a tech school, on job training, 2 year or 4 year university. But you can’t place everyone in the same category because each path is not for everyone. Although there are economic benefits to education, wouldn’t you rather focus on what’s best for you? Each individual will find happiness no matter where they end up, as long as they end up finding what they truly love instead of just focusing on the societal pressures of going to a 2 or 4 year school.

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  4. I definitely believe that college is worth it because employer’s are going to see that you have a higher amount of knowledge considering what field you go into and the more school you do the better chance you will beat other competitors that are also looking for this job. The fact that the cost of college is getting higher and higher is a problem that can be fixed if we just save our money properly and take necessary measures to make sure we don’t fall behind on these student loans. Even though people have a lot of student loans if you are able to find a really good paying job right out of college then you won’t have as much of a problem paying off these student loans then if you couldn’t find a job or got a worthless degree. There is also the fact about you being smart during college because you need to think ahead on what you plan on doing and see if you will be able to find a job right out of college so you don’t fall behind on your student loan payments.

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  5. College isn’t really worth an arm and a leg just to get an extension on your learning. There are some school that offer dual enrollment like here in Pewaukee. Dual enrollment is where the school pays for the tuition for the first year and you also get credit in school. You only have to pay for tuition for one year. With prices rising there are many colleges out there what are technical college’s where they are a cheaper and faster way of getting a piece of paper that says that you’re smart in this field. All states are different in tuition prices. If you go to college out of state then the tuition will become higher. There are many viewpoints about college being for the rich because nowadays there really isn’t a middle class anymore it’s either you’re rich or you’re poor.

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  6. I do agree that college provides the opportunity to further our knowledge and skills to enter the workforce, but it does come at a very high cost. I think it is interesting how much the salary of the college professors has inflated over the years, when it is common to now have TA’s actually teaching classes at big universities. Additionally, a reason for the increase in price of college now is the amenities that schools are providing for students such as suite style living, fitness centers, and many other things that were not previously provided. I think that college is worth the money because I know it will help me to get the job I want, but it most definitely is going to be very pricey.

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  7. As thousands of people do not attend college today to “save money” they are not earning as much in return. In your blog post I agree with the idea that college is worth the amount of tuition and fees because it not only provides new skills for the students to bring into the workforce but it also let’s the college students experience life on their own and the transition process into becoming an adult. Without the experiences from college students don’t get to learn what it’s like to get out and do something (meet new people, join a club, discover a career you may pursuit later, etc.) which in turn gives the students more memories to grow from. With all this in mind, college (even as expensive as it is) is worth the cost for the better opportunities and pathways in which it will guide us (the students) too.

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  8. The reason that colleges have such high prices is because they can keep raising the prices to whatever they want and people will still go to college. In today's world, businesses always look for people that have a degree, but two or three decades ago you could get a higher paying job much easier without needing to go to college. It is also socially expected of you to go to college. People often think lesser of people who don’t go to college, and that is just a problem with the philosophy of people today. There are plenty of good jobs that don’t necessarily need a degree.

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  9. Agastya Asthana,

    I agree that going to college has high benefits, but jobs look at your skill set at your particular job, not whether or not you can find x. Colleges prepare you by teaching you advanced materials but how much of that material has to do with your skill set. I personally will go to the college but I will go to one that provides me with the skills that I need and not overload on information that will will remain just information. Colleges, however, give you a brand name to associate with. For example many people buy an iPhone not because it is the best, but because it is from Apple, which has a good reputation. Likewise, a reputable college can add a great brand name to your name. Overall going to college will be expensive but at the end of the day it will be worth the effort.

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  10. While there are a lot of economic benefits to attending college in the long run, it’s not enjoyable when you are doing it. Not only are you spending tens of thousands of dollars, you are also spending most of your time studying for your classes, which takes away time that you could be working and earning money to pay for said classes. This leads many to skip college altogether and start working after high school or, as many do, drop out after a few months of college because they can no longer afford to keep paying for it.

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  11. The price of attending college is definitely relevant to all the seniors currently applying to college. It makes many of us question if attending school for 4 years at the high cost is worth it. Especially if we factor in the opportunity cost of possible money that we could have made working that we will be giving up by attending college. However most jobs that we hope to get in the future require at least a bachelors degree almost forcing us to attend and spend the money. Then of course we want to attend prestigious private schools which usually cost more to set us apart from others entering the job force. It can definitely make you question if it is all worth it or not.

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  12. I can agree with you that going to college can have huge benefits for your future, but there are also many other ways to earn a good paying job without having to attend a four year college. For example, a welder could go to WCTC and get their education in half the time and obtain a job that pays more. Also, the cost of college is extremely less and gives you the opportunity to cut your cost on housing by commuting from home. On the other hand while you are off at a 4 year college your loans are accruing and keep increasing in interest until you completely pay it off.

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  13. As you stated, “the inflation rate of college education has risen 500%,” and I feel as though this could be the result of a few determinants that weren’t mentioned. The first is the rising demand for a college education, which means that college tuition can increase and people will still want to attend college. Secondly, based on the definition of collusion, one could make a compelling case as to why colleges are guilty of this. Collusion may only exist in oligopolies, but the cost of going to college is crazy expensive across the board. Of course there are two-year schools or smaller colleges that don’t require such a large fee, but then a student may be trading a better education for a cheaper price.

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  14. The opportunity cost of going to college is huge. So if I get a bachelor's degree it will be in something that makes a good amount of money. Considering the thousands of dollars in debt that I will be in while not being able to work full time in college. For a lot of Pewaukee children the cost isnt really a big deal because a lot of the parents at this school district cover their kids tuition for college. But for lower income areas and people at this school who's parents don't have the money. The burden lands on the students shoulders. And it is very difficult like I said to pay for it all on your own when you don't have a full time job.

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  15. Today, I feel as if more and more students are being pressured into applying to a college because they are following what their peers are choosing to do. Because certain schools have certain reputations, and the ones that are "better" are more expensive, people are deciding to go to a college for recognition rather than what they want to major in, without considering the cost; and because of this, I think colleges have the ability to keep raising the prices, because the demand will almost always be there. There are benefits in choosing to opt out of college, for example, you can work and start earning an income earlier in life. However, as you mentioned in your post, the opportunity of not going to college is receiving a higher education that gives you the option to have a more specialized and higher paying job in the future. So, in all, I feel like people need to stop jumping on the bandwagon, and start making choices that make sense for them, not their best friend because there is economic value for either of the two choices you choose between.

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  16. A lot of the discussion regarding opportunities costs and pursuing higher education depends a lot on demand; with the recent recession, many graduates who may have had what would've been more possibly useful degrees found these to not be as beneficial as they hoped, especially for those with degrees in the liberal arts and whatnot. Presently, demand for employees with these kinds of degrees have increased to an extent and are expected to increase dramatically in the coming decades with the larger amounts of people pursuing STEM degrees, meaning that opportunity costs of education can change not only with majors, but with time and the current state of the economy as a whole.

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  17. I agree that higher education leads to better and more efficient economies for the reasons you described; additionally, also considering the increase in wages that a college graduate could expect, everything points to college being the right choice economically. This is what I think has caused such a high inflation in college prices; the demand for a college diploma, and employees who have one, has been steadily increasing over the past few decades, and the demand for this type education is potentially inelastic as well. Thus, students are willing to pay these higher costs. However, for potential students I think it is still important to consider the opportunity cost of attending college in general as well as specific types colleges; for example, comparing the opportunity costs of attending a two versus four year college for their desired degree or career path.

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  18. Nowadays college tuitions have become excessively expensive, which leads to a greater opportunity cost of both attending and not. You raise an interesting point about how college may not be worth it, as heading straight to the work force eliminates the opportunity cost of all of the extra money that would be spent, yet still has an opportunity cost of missing out on the college experience and higher level education. These increases in tuition prices represent a change in price, which would ultimately lead to a decrease in demand. This would be an interesting change, due to the fact that there would then be a larger amount of students going directly to the work force, overall increasing the amount of young workers and decreasing college students. However, even though colleges are increasing their tuitions, they provide a service that many think is relatively inelastic and will continue to utilize even if the price increases.

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  19. I definitely agree that the economic value of going to college outweigh the reasons not to go to college (this comes from a girl who has been preparing for college literally her entire life). I think that it will be interesting to look at the opportunity cost - i.e. going into the workforce directly - and see how much a person contributes to the economy in those couple of years compared to their entire life after college. I still think going to college will overall contribute more to the economy and ultimately, I think that the higher price of education is driving our world's economy higher. Also, with higher education costs, there are more opportunities for grants and scholarships to reduce this cost. Some companies even pay students to attend college.

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  20. I definitely believe that there is value to college. However, will the value will slowly decrease over time? Right now college graduates get paid more because they have something of value, knowledge and certification. However, at the current trend of our nation, more and more people are going to college and getting degrees. With the supply of college grads increasing, will the value of college grads decrease? Additionally, due to such a large number of colleges now, will a disparity in the value of a similar degree increase based on which college was attended? Now that more people are going to colleges, prestigious schools can be more selective. This will eventually make graduates who attended prestigious school's worth more in the job market. That makes degrees from mediocre schools worth less and therefore the graduate worse off than if they would've gone to college 50 years ago. I think the job market will switch to center on where you went to school and what degree you have because those are the few things that allow you to be differentiated in a largely college educated population.

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