How much does college cost (and why it is still worth the price)

Cost of University Education

Typical costs vary significantly depending on the type of institution. According to the College Board, the average cost of tuition and fees (which may include library fees, on-campus transportation, student government, and athletic facilities) for the 2021-2022 academic year was $38,070 at private colleges, $10,740 for in-state students at public colleges, and $27,560 for out-of-state students attending public universities.

These figures do not include housing, food, books, and school supplies, which can easily add between $10,000 and $18,000 annually. Multiply these numbers by four years of college, and you’ll find yourself staring at a hefty college bill. It’s no surprise that student debt levels surpassed $1.6 trillion in 2022.

Why a College Degree is Still Worth the Price

Affording college can be difficult when you look around and see many graduates struggling to find work. However, data overwhelmingly supports the idea that college will be worth the cost for most students.

Wage Gap: According to the Bureau of Labor Statistics, the wage gap between individuals with a four-year bachelor’s degree and those with only a high school diploma remains significant. Weekly earnings for those with a bachelor’s degree average $1,334, while employees with a high school diploma earn an average of $809. The gap widens even further when comparing workers with doctoral degrees to those with some college or no degree.

Wage gap and unemployment rate by education level:

• Less than high school: $626 weekly, unemployment rate 8.3%
• High school diploma: $809 weekly, unemployment rate 6.2%
• Some college, no degree: $899 weekly, unemployment rate 5.5%
• Associate degree: $963 weekly, unemployment rate 4.6%
• Bachelor’s degree: $1,334 weekly, unemployment rate 3.5%
• Master’s degree: $1,574 weekly, unemployment rate 2.6%
• Professional degree: $1,924 weekly, unemployment rate 1.8%
• Doctoral degree: $1,909 weekly, unemployment rate 1.5%

Lifetime wage gap: This gap widens based on the fact that the lower your degree, the more likely you are to be unemployed. Given the higher unemployment rates and annual wages, it’s not surprising that these figures lead to significant long-term differences. In fact, not attending college after finishing high school can cost you $1.6 million in lifetime wages, according to a 2021 Georgetown University study.

Lifetime earnings by education level:

• Less than high school: $1.2 million
• High school diploma: $1.6 million
• Some college: $1.9 million
• Associate degree: $2 million
• Bachelor’s degree: $2.8 million
• Master’s degree: $3.2 million
• Doctoral degree: $4 million
• Professional degree: $4.7 million

The Impact of Your Major on Earnings

It’s not just about whether you attend college or not. The degree you choose has a significant impact on earnings over the long term. The same Georgetown study revealed a wage gap of $1.8 million in lifetime earnings between the highest- and lowest-earning majors. High-earning majors include architecture and engineering; computer science, statistics, and mathematics; and business. On the other hand, lower-paying majors include education, psychology, social work, and the arts.

Lifetime earnings by bachelor’s degree major:

• Architecture and engineering: $3.8 million
• Computer science, statistics, and mathematics: $3.6 million
• Business: $3 million
• Natural sciences: $2.9 million
• Health: $2.9 million
• Social sciences: $2.8 million
• Arts: [Incomplete]

Life and Biological Sciences: $2.8 million

Communications and Journalism: $2.7 million

Agriculture and Natural Resources: $2.6 million

Law and Public Policy: $2.6 million

Industrial Arts and Consumer Services and Entertainment: $2.5 million

Humanities and Liberal Arts: $2.4 million

Arts: $2.3 million

Psychology and Social Work: $2.2 million

Education: $2 million

Of course, there are plenty of options and a wide variety of potential salaries for each degree. Our economy needs teachers and engineers. We need social workers just as much as we need accountants. It’s easy to focus on the major that can bring you the most money, but it’s more important to find something you enjoy in a field where you can excel.

In today’s digital economy, the future of work is changing rapidly, and one thing that is becoming clear is that despite the core specialties and fields to learn, some areas overlap. The candidate who competes is the one who has a curiosity for learning, and that may mean the intersection of technology with finance, business with social studies, mathematics with psychology. A lot of success happens at these intersections.

Conclusion

Before you decide that the cost of college is too high, make sure to look at what the statistics show. The financial benefits of a college degree, on average, far outweigh the immediate costs. Compare college costs against post-secondary work as well before making any decisions. If you’re worried about saving for college, check in with a financial advisor to discuss a college savings strategy.

Frequently Asked Questions

Why is college so expensive? There are several reasons why college is so expensive, including decreased government funding, increased university benefits to attract students, and the availability of widespread student loans, which means universities don’t have much incentive to lower prices.

What are the primary college expenses? The biggest expenses in college are tuition, housing, food, books, and school supplies. Commuting can also be a significant expense, depending on how you get to campus and whether you spend a lot traveling to see family on weekends and holidays.

Source: https://www.thebalancemoney.com/how-much-college-costs-1289838