How Much Is That College Degree Really Worth?

$$$

I have no degree yet make 61k/year. Wife makes 32k/year with no degree. I make more money than the DA and my wife makes 75% of what he makes. It is all about what you are willing to do. If you work hard at a goal you can get there. You just have to WORK HARD. Nothing is free and a hand-out is not gonna be there. The sooner you realize this the sooner you will do better for yourself. We are not rich but we have always been able to make it on sheer determination. If we have to be "cheap" then so be it. You will always reap what you sew.

Having a degree is a requirement in many cases.

I am a recruiter and alot of clients won't even consider an applicant without a degree. Most of these jobs are 80-150k a year. You can't be a professional in any capacity without a degree (doctor, lawyer, nurse). Does it mean you can't make a decent living? Absolutely not. However a college degree comes down to reading roughly 60 books or more. Many people do not read. You can educate yourself and be intelligent, all of which provide value. Hands down in a rough economy I guarantee those who know people AND have degrees will get jobs first, THEN all those who have a good networks, THEN anyone with a degree. Everyone else will get whatever is left.

$300,000??

I'll sell mine for that right now. I'll make a small profit, not including my own time and effort.

I think Smart People make more money....

And, most smart people finish College. I didn't finish college, but I live in the rural South and make about 80Gs a year, I can't complain. My wife is a Nurse and makes about 35Gs go figure... I dropped out of college after 3 years with no major even selected... my wife spent 5 years obtaining her degree in a specified field and makes less than half of what I do. I'm just smart, set goals with $ involved. Applied for jobs with good pay, nice insurance, worked hard, used my mind and I'm okay. Not THAT well off... but, okay.. Smart people make more money...

Flawed Numbers

Don't you consider the lost income from investing college money versus spending it on a degree?

"Add that up over a 40-year working life"

"cost of a college degree—about $30,000 in tuition and books"

What about that $30,000 invested over 40 years?

What if you put that $30,000 "college investment" into a money market account instead of a college degree? At 5% interest, compounded over 40 years (using the same "40-year working life" calculation), yields: $211,199.

At 10% interest (a number that stock market proponents like to use for long term returns) on that $30,000 college money yields: $1,357,777.

Note that you could well become a millionaire without working at all, investing that "college investment" in a brokerage account instead of slaving away 40 years of your life to recoup your college cost.

And, nearly half of all college students never graduate. If the risk of the "college investment" failure is around 50%, then doesn't that significantly reduce the value of a degree? If you invested in a stock that 50% of the time gave you $300,000 and 50% of the time defaulted, would you value that investment at $300,000? Why should a college degree be valued at $300,000 if half of entering students never graduate?

Are you a fool to "invest" in college?

Are the author's calculations absurdly flawed?

Isn't it ironic that the "economist" seems to miss basic principles of investment in calculating college costs versus returns?

The Worth of a College Degree

I see a lot of comments about not going to college and making more than those who did. I didn't do well academically in high school and didn't have a bright economic future in 1968. After spending 8 yrs in the Marine Corps and a tour in Vietnam, sitting in a class room listening to lectures became much more appealing. I graduated from University in 1980 and earned my Masters degree in 2003 at 52 yrs in age. The value of my degree was the education it provided me and the opportunity of doors being open because of my education. You still have to have the drive and determination to accomplish your goals.

This was a very good article for a parent discussing higher education with their children.

B.S.

The degree is worthless unless you go to an alleged top school. If I had to do it all over again, I would have never got a degree. It would have been better to take courses in medical fields

College Degree.

I didnt even go to college. I kind of saw this coming. I earn a higher salary than my partner who has earned a 4 year degree. I am also not saddled with a choking student loan payment, as he is. I am faring much better than most of my friends that have graduated with degrees, and are unable to find work in their field. They struggle with paying for an education that they cannot use. I am happy with my choice not to go. So many others are out there dissilusioned by the college experience and what was really gained with it. People in their 50's and 60's retiring had an economy going for them.

all of our high paying jobs are now in India, China, Mexico.

its not a good time to be a worker in the US. College educated or not. To each their own. Im glad I did not waste my time or money.

College Degree

This article is typical of articles on the benefits of a college degree in that it fails to understand cause and effect. Simply saying that people with a degree make more, are healthier etc. does not prove that the degree is the sole cause of this better life. People who get into college and stay are more likely to be from families with ample income and better class status and they are more likely to have above average intelligence. Apparently college boosters have not had courses in logic.

Collegle

The choice of whether or not to attend college depends on what your goals are. If your goal is to make money, raise a family and contribute to the community, then you might not need a college degree. I wanted to be a scientist and professor and obviously needed a PhD (Engineering). At the moment I don't get paid as much as many people without college degrees. For me the value of the degree is that I get to do what I love, namely research. I get paid to indulge my curiosity and creativity. Even if I don't become a millionaire, I have achieved a tremendous amount of satisfaction at an early age. For me, this is the key.