A College Education: The Best Investment You’ll Ever Make
The price of a college education has been rising faster than inflation for years causing many higher education critics to harp on the worth of a college degree. Some have even argued that higher education will be the next bubble to burst. For those critics, and those personally questioning the value a college degree will have in their lives, we offer this bit of evidence.
As you can see, the gap in unemployment between those with only a high school degree and college graduates is widening, making a college degree more essential than ever.
But there’s more, and it should make anyone who’s ever pondered why they’re getting a degree happy: A college education can add close to $20,000 per year in extra earnings over the course of a lifetime compared to just a high school diploma. That’s an incredibly high rate of return on an investment.
In a recent study, two investors took the average cost of a college degree, $102,000, and invested that money in real estate, the stock market, bonds and a college degree. Guess which investment had the highest rate of return? It was a college degree with a 15 percent return rate, double the rate of the stock market. The study found that over a lifetime, a college graduate will earn $600,000 more than someone with a high school diploma.
As for rising education costs, let’s face it, not everyone is eligible for a scholarship. But there are efficient steps students can take to cut costs. Students could consider going to a two-year community college, or getting certified in a particular subject. They could also take a college credit exam for subjects they already have a working knowledge of.
The real value of a college degree is that graduates are more likely to be employed. Yes, there are increasingly high costs involved, but recent data has shown that the monetary benefits of a college degree over a long period of time far outweigh all costs.