Is College Still a Good Investment?

The average student graduates from college with $20,000 in college related debt. If it takes 20 years to pay that loan, at current interest rates, that loan will cost the student $36,600. It would be difficult to calculate an average cost of tuition since far less students attend schools like Princeton but in order to calculate the total cost of a college education, $36,600 would have to added to the total college cost.

Now that we have an idea of the total investment, what do the numbers on the other side look like? The average salary that a college graduate can expect is $46,000 per year compared to a non-college graduate who earns an average of 25% less. Possibly the most disturbing statistic is the unemployment rate. While the national unemployment rate is above 9%, the unemployment rate for recent college graduates is only 1% lower. Unlike a decade ago, there is no guarantee that a college degree with lead to a job and, in fact, a large amount of college graduates are either unemployed or in positions that are unskilled or don’t require a college degree.

Looking at all of the statistics, is a private ivy league school going to attract a higher paying job after four years compared to an in-state school? Is attending a high priced school for a degree that produces relatively low income a good return on investment?

Education majors who intend to pursue a career as a public school teacher will receive no extra money because they paid more for their degree while a lawyer may be more attractive to a law firm if they have a Harvard Law Degree on their resume. These are only a few of the questions that families have to consider in this economy more than in pre-2008 economy.

Regardless of current trends, a college education is still the best investment to make in yourself or your child. Although it may take 5 or more years to begin making a profit on your education costs, the investment quickly becomes profitable. Don’t let cost detour you from attending college.

Article First Appeared @: http://www.bargaineering.com/articles/college-good-investment.html

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