Is Plunging into College Worth it? Apparently, Not Everyone Thinks So As Fees Rocket and Non-Graduate Pocketbooks Grow Fat
Ever found yourself pondering the age-old question “should I empty my piggy bank for a college degree”? Well, you’re not alone. With tuition fees skyrocketing to stratospheric levels and a trend seeing non-graduates raking in the dough, who wouldn’t have doubts?
A somewhat intimidating survey from our buddies over at the Pew Research Center puts into sharp focus this growing unease about the cost versus benefits of college education. Apparently, only 22% of adult Americans believe that getting roped into student loans to secure a college degree is worth it. That’s a lean slice of the pie, right?
Almost half (47% to be precise), those who still swear by the old school ‘get a degree’ mantra, holler that it’s only worth it if you can make it to the finish line — graduation, without a mountain of debt hanging over your head. Then there’s the 29% who boldly state that college is just not worth the Benjamins, loans, or no loans.
College Diploma: Losing Its Charm?
The once revered college diploma seems to be under scrutiny. Pew’s research claims that 49% of folks consider a degree much less essential for landing a well-paying job than it was like 20 years ago. Contrastingly, a mere 32% believe that college degrees have become more pivotal for success compared to two decades ago, and then there are the 17% staunch believers who reckon the significance of a degree remains unchanged.
[Sponsored: Compare student loan providers and find the best rates for your college costs today.]
WHY AMERICANS ARE STARTING TO GIVE COLLEGE A SIDE-EYE
Sources like Pew’s are humming the same tune we’ve been hearing from various corners — the price tag on college education is a hard pill to swallow for many. With tuition fees morphing into financial beasts and student debts thicker than textbooks, the skepticism is no surprise.
Looking at the harsh reality? Well, from 2000, the average listed tuition and fees have soared 46% at private universities and a jaw-dropping 81% at public four-year colleges, courtesy of data from the College Board. Yikes!
Plus, the rise of alternative career routes that don’t require university degrees seem to be enticing many, presenting a lucrative option we might not have considered seriously in the past.
As per the Pew report, “After decades of stagnating wages, young American workers (ages 25 to 34) sans bachelor’s degrees have seen a significant income boost over the last decade. And we’re talking more than just chump change. Their wealth has grown, and fewer are living below the poverty line.”
However, all is not lost for degree holders, friends! They are also buttering their bread on both sides. This reflects a widening wealth gap between those with degrees and those without. Pew data throws light on the fact that median earnings for young chaps with just a high school diploma earning their livelihood full time have grown by nearly $5,700 (from 2014 to present, in real terms), while those university-educated lads have seen a growth of $9,500 over the same period.
The pattern mirrors in the case of women too. Life’s looking pretty green for the ladies with high school diplomas, who saw their earnings swell by roughly $5,100 during the past decade. Meanwhile, it’s rainbows and unicorns for those with degrees, who saw a spike of nearly $10,000.
The impact on household wealth shouldn’t be overlooked. Among high school graduates, median wealth of household heads has sprung from $12,700 in 2013 to $30,700 in 2022. Peachy, ain’t it? Except, it’s dwarfed when you compare it to households led by college grads, whose net worth surged from $46,600 to a whopping $120,200 during the same period.
[Sponsored: See the top student loan lenders and compare interest rates and repayment options to help finance your education.]
A Great Debate: Is College Worth it?
So, the million-dollar question — is college worth it? As tuition fees continue their upward climb and earnings projections teeter, the answer increasingly lies in your personal money matters and career aspirations. A riddle that only you can solve.