Is a college degree worth it? Data-backed response to the Wall Street Journal (2023)

"A four-year college education isn't worth it because people often graduate without specific job skills and have a lot of debt to pay off."

The results of the survey follow a well-established trend: the perceived value of a four-year degree has changed over time. factors such asexorbitant tuition feesand student debt, as well as an uncertain economy and changing labor market demands, have called into question the value of a university degree.

In such a climate, making informed decisions about education andprioritizing universities and programs with a proven positive return on investment (ROI) is more important than ever. Unfortunately, most university rankings do not provide.

Return on investment (ROI) of universities and school rankings

Perhaps you've heard ofrecent reviewsuniversities that include giants in the so-calledUS news.US newsbegan classifying colleges for the first time in 1983. It was a different world back then: the first Mario Bros. arcade game had just come out, and college wascheaper.

U.S. News ratings were and still are based on factors such as "student selectivity", "alumni endowments" and "teacher salaries". Prestigious and expensive universities are at the top of their list, and a university's ROI is not a ranking factor. It's an outdated ranking model and that's why it's under attack.

Students can no longer afford to go to college based on the vague promise of future success; they need to know that the money they invest in studies will really pay off.

A lot has changed since 1983. Students can no longer afford to go to college based on some vague promise of future success - they need to know that the money they put into college will really pay off, but traditional college rankings don't deliver that. type of information

OurROI approach to university rankingsis based on data from the Department of Education. To help prospective students and parents decide if a (particular) university is worth the money, we look at factors such as:

1. the cost of tuition after taking into account scholarships and scholarships
2. how quickly students graduate
3. How much do college graduates earn

Is it worth going to college? depends on the university

According to our data, for most people, college is worth it, unless you choosebad school. Within 3 years of completing one of theTop 100 public universitiesaverage student:

• Earn at least twice the average high school graduate salary, and in many cases well above the national median wage of $45,760.
• You got back what you invested in the universitywith the extra money they earned compared to a high school graduate.

We will refer to these 2 factors as the return on investment in the university. While college return on investment varies greatly depending on the school you choose, your field of study can play an even bigger role.

ROI of the university and the choice of specialization

The WSJ article presenting the results of the College Value Survey includes several "case studies" involving people who regret having graduated from college. One example is a woman who earned a bachelor's degree in horse science from a private liberal arts school in 2003. He graduated with $85,000 in student loan debt and few career prospects. Twenty years later, she earns $36,000 a year as a dialysis technician and her student debt has increased to $145,000.

While the WSJ journalists chose a sensational example to show, it proves right. Hismain collegehas a big impact on the "real" ROI of a title.

Your field of study has a large impact on the "real" ROI of your degree.

The reality is that some careers pay much less than others, and unfortunately salaries do not always match the importance or importance of the profession.

• With a bachelor's degree in pedagogy, you will earn an average of $37,414 three years after college and about $61,000 long term if you become a teacher.
• With an engineering degree, you will earn an average of $70,786 three years after graduation and over $80,000 as a long-term engineer.

Does this mean you shouldn't consider a career in teaching and that we should all flock to STEM studies? Absolutely not.

But that means you needcarefully consider your options and assess your risks before taking out a student loan. In the next section, we'll show you how.

The paradoxical value of a university diploma

Let's go back to 1983. (cues"Total Eclipse of the Heart by Bonnie Tyler.) Apart from the cost of studying, something else was completely different back then. You could do most of the workwithout a college degree. If you had a title, you stood out from the competition. Today, about half of all jobsrequire a bachelor's degreeand having it became much more common. This gives you one more degreeimportant(more likely to need it) but less sovaluable(do not tick if you have).

Is getting even more education the answer? Sometimes yes. Does your employer subsidize all or part of your MBA studies? Sounds like a good deal. But getting a master's degree or even a bachelor's degree without understanding the economic outcomes? Maybe not so smart.

Should I go to college? Questions to help you decide

Here are some key things to think about to help you decide if college is worth it and maximize the return on your degree investment.

What job do you want after graduation?

Talk to friends and family and a career counselor andtry a personality assessmentto help you decide. At this early stage, you don't need to focus on salaries. Instead, think about what makes you happy and what you're good at. To find out if there is a high demand for a job you are interested in, you can browseBureau of Labor Statisticswebsite.

Do I need a university degree to do this job?

If you don't need a degree to get your dream job, it might be a good idea to get into a major first and then consider studying later on, if at all.

Let's say you want to work with horses like the unlucky guy in the WSJ article. One of the best paying careers you can choose isbecome a veterinarian. It will take him about 8 years as he needs a PhD and will need to be good at math and science to get into veterinary school.

If all you care about is being around horses, you can become a ranch worker earning around$14 per hour. Should you get a bachelor's degree in farm animal services to become a ranch worker? Probably not. You can only do this with a high school diploma or GED, and a bachelor's degree would cost you around $84,816. The return on investment would also take 19.3 years (the average for all undergraduate degrees is 3.8 years).

Do you need a 4 year degree?

If not, consider a degree orTrade school. These programs are typically offered at a fraction of the cost and time investment of a 4-year degree. There are several well-paying and demanding jobs you can pursue with a 2-year degree or a trade school diploma, includingEngineering technicianand dental hygienistlegal assistant. You always cantransfer credits to a bachelor's degreeif you decide to develop your career.

Do you need a specific specialization?

Some specializations are "professional" and are needed for certain jobs. win this titleneedyou get a jobto wantIt will almost always pay off in the long run if you choose a high value school.

For example, to become a social worker you needBSc in social work accredited by CSWE. Choosea social work program with a high return on investmentand you'll be well on your way to a stable career. It may take a little longer for your degree to "pay off" than, say, an engineering degree, but social workers earn above the national average after a few years of career and are always in demand.

If you don't need a specific degree, you have a few options:

1. Choose a university with a high ROIthat meets your other criteria (for example, located in your state or offersgood financial help) and don't worry too much about what you specialize in.
2. Choose a high ROI program that aligns with your interests. let's say you wantbecome a psychologist. A psychology degree costs approximately $35,412 three years after graduation. Instead, you can do a bachelor's degree in cognitive science or human resources (both pay around $47,000). Then, if you still want to become a psychologist, you can get a PhD (iyou won't need a bachelor's degree in psychologyTo do this). Or you can enter the workforce and probably earn much more than someone with a degree in psychology.

Choose the best university for your chosen program. Let's say you want to do that psychology degree anyway. Knowing that this is a fairly low ROI title makes choosing a high value school even more important. To wearevaluation of our programto help you see which schools have a high return on investment in your chosen major.

Students need tools, not scaremongers

In today's United States, college is a major financial decision. Unfortunately, it is not always treated with the seriousness it deserves. A Wall Street Journal study reveals a disturbing reality: many people went to college without a clear vision of their future or knowing if they could earn enough to pay off their student loans.

But since most professions require a 4-year degree,dropping out of college is not a viable option for many people. Instead of instilling fear, prospective students need effective tools to help them determine if college is the right choice for them andwhich schools and programs are really "worth".