As the cost of college increases, doubts of how important it is to study a bachelor’s degree raises as well, it is time to assess if it’s still the right investment for your future.
The cost of college has been rising steadily for decades, and many people are wondering if it is still a good investment. After all, college graduates are now facing a significant amount of student loan debt. If you’re looking into getting a student, you should also review your options, check out this article to get a better idea of them.
According to SavingForCollege.com, people enrolling in college in 2023, can expect your four-year undergraduate degree to cost between $110,000 and around $240,000.
However, college is still a good investment despite the rising costs. According to Forbes Media, college graduates earn significantly more money than people with only a high school diploma.
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The median earnings of a worker with only a high school diploma was $730 a week, while those with a bachelor’s degree earned $1,200, according to the US Bureau of Labor Statistics (BLS).
Also bear in mind that the cost of tuition can vary from school to school. For instance, the cost of a college degree will be lower with an in-state school versus an out-of-state private school.
Over a lifetime, the increase in salary can make a significant impact on the overall financial wealth of an individual. In many cases the difference between a high school degree and a college degree can be in the hundreds of thousands of dollars.
Benefits of a College Degree
Let’s take a look at the benefits of a college degree:
- A high median salary - You can make about $1,200 a week more versus a high school graduate.
- More wealth - You can make hundreds of thousands to millions more with a college degree.
- Better job stability - Those with college degrees are less likely to be laid off or made redundant.
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The median amount of money earned in a year by college graduates is about $18k more than those who didn’t graduate according to data from the American Community Survey, carried out by the U.S. Census Bureau and the BLS.
While the median college graduate worker makes $52k, the high school graduate worker makes $34k, some college graduates make more than double, up to $70k (inside the 25-75 percentile range).
Choosing the Right Degree for Best Return on Investment
Be wise to choose what to study, find a formula of what you are good at, what you like, the most demanded job positions and the best paying jobs.
When you waive your options, take in mind that your career will have a development from when you graduate through your professional life as well as ascending positions or changing companies therefore you should take in consideration today’s labor demand, its salary as well as the future of the positions that will require the major you chose
For instance, degrees in STEM (science, technology, engineering, and mathematics) are expected to grow 10.5% over the next eight years, according to BLS, compared to a 7.5% increase expected for non-STEM occupations.
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U.S. News & World Report publishes an annual list of the best paying jobs in America, which can give you a good idea about of what you can study, in the other hand BestCollegeReviews.Org has a list of the best career paths you can take, based over the most demanded job positions, that can also be of help.
According to The Labor Market for Recent College Graduates, a study made by the Federal Reserve Bank of New York based on data from the American Community Survey, with an interactive web feature you should check out, we have these takeaways for you to consider.
There's a big salary gap between good jobs and low-wage jobs . According to the study, good non-college jobs are those with a full-time average annual wage of roughly $45,000 or more, while low-wage jobs are those that tend to pay around $25,000 or less.
The study includes a chart of majors that includes unemployment and underemployment rates, as well as median wages for early graduated and mid-career employees, that can be give you a good idea of what degrees to consider before you go to college:
|
Best paying careers (early and mid-career) |
||||
| Major | Unemployment Rate | Underemployment Rate | Average of Median Wage Early and Mid Career | Share with Graduate Degree |
| Chemical Engineering | 4.1 | 19.6 | 97,500 | 47.4 |
| Computer Engineering | 3.7 | 17.8 | 94,000 | 40.0 |
| Aerospace Engineering | 6.6 | 27.7 | 92,000 | 49.4 |
| Electrical Engineering | 3.2 | 15.4 | 89,500 | 47.7 |
| Computer Science | 4.8 | 19.1 | 89,000 | 31.8 |
|
Least paid careers (average of early and mid-career) |
||||
| Major | Unemployment Rate | Underemployment Rate | Average of Median Wage Early and Mid Career | Share with Graduate Degree |
| Early Childhood Education | 3.1 | 24.5 | 41,500 | 40.8 |
| Elementary Education | 1.8 | 15.2 | 44,000 | 49.0 |
| Theology and Religion | 3.6 | 35.5 | 44,000 | 44.9 |
| Social Services | 3.0 | 27.7 | 44,500 | 52.4 |
| General Education | 1.8 | 22.9 | 45,600 | 50.1 |
|
Careers with Lowest unemployment rates |
||||
| Major | Unemployment Rate | Underemployment Rate | Average of Median Wage Early and Mid Career | Share with Graduate Degree |
| Miscellaneous Education | 0.6 | 16.7 |
48,000 |
56.6 |
| Nursing | 1.3 | 10.1 | 65,000 | 29.3 |
| Construction Services | 1.4 | 17.7 | 80,000 | 9.9 |
| Elementary Education | 1.8 | 15.2 | 44,000 | 49.0 |
| General Education | 1.8 | 22.9 | 45,600 | 50.1 |
|
Careers with the highest unemployment rates |
||||
| Major | Unemployment Rate | Underemployment Rate | Average of Median Wage Early and Mid Career | Share with Graduate Degree |
| Fine Arts | 12.1 | 55.4 |
52,500 |
23.2 |
| Philosophy | 9.1 | 57.1 | 55,000 | 56.5 |
| Sociology | 9.0 | 51.3 | 50,500 | 38.3 |
| Family and Consumer Sciences | 8.9 | 47.9 | 48,500 | 32.9 |
| Mass Media | 8.4 | 51.7 | 57,500 | 21.2 |
|
Careers with the lowest underemployment rates |
||||
| Major | Unemployment Rate | Underemployment Rate | Average of Median Wage Early and Mid Career | Share with Graduate Degree |
| Nursing | 1.3 | 10.1 |
65,500 |
29.3 |
| Pharmacy | 4.8 | 14.7 | 77,500 | 65.1 |
| Civil Engineering | 3.4 | 15.1 | 82,500 | 38.6 |
| Elementary Education | 1.8 | 15.2 | 44,000 | 49.0 |
| Electrical Engineering | 3.2 | 15.4 | 89,500 | 47.7 |
|
Careers with the highest underemployment rates |
||||
| Major | Unemployment Rate | Underemployment Rate | Average of Median Wage Early and Mid Career | Share with Graduate Degree |
| Criminal Justice | 4.5 | 71.3 |
56,950 |
24.1 |
| Performing Arts | 7.6 | 64.0 | 50,500 | 38.5 |
| Medical Technicians | 5.8 | 59.5 | 61,000 | 24.6 |
| Leisure and Hospitality | 5.3 | 58.6 | 49,000 | 34.1 |
| Philosophy | 9.1 | 57.1 | 55,000 | 56.5 |
What to Consider If You Decide to Go to College
When choosing the right school, there are some important considerations you should review. Perhaps the most important factor to consider is whether the school is accredited. This ensures that your degree will be taken seriously by an employer.
Also, consider what the school offers beyond its curriculum. For instance, some schools are excellent at offering career counseling, financial aid, and academic support.
Finally, it is up to you to make the most of your college education. Get good grades and master your coursework in order to get the most attractive job offers.
A great tool you can use to decide what schools to apply for is the Best National University Rankings made by the U.S. News & World Report, which includes a list of universities qualified by 17 academic indicators based on 10 distinct overall rankings to determine each school's overall score.
The bottom line: Is college a good investment? Yes.
Sure, the cost of a four-year college education is going up. However, there will always be a high demand for those who receive a degree in the right field. You simply have to be more selective about your coursework.
Making the Most of a College Degree
Let’s take a look at some tips to help you make the most of your college degree:
- Carefully consider the tuition cost of several different schools.
- Make use of all of the school’s resources.
- Work as hard as you can and get the best possible grades.
College Can Be a Great Investment If You Take the Right Steps
If you choose to go to college, be sure to choose the right program with in-demand work and a high starting salary. Also, take advantage of any grants and scholarship programs.
With the right preparation, you can make the most of your college investment.
