No. They are not.
But their perceptions are not unreasonable.
The opinion about the value of a college degree is based on a survey from the Pew Research Center. The data from Illinois State University (ISU) shows the economic returns to a college degree are quite high.
Looking at median wages, a typical ISU graduate can expect to earn approximately $900,000 more over their lifetime compared to a high school graduate. Analyzing the data by average instead of median results in a difference of over $1,000,000 (million). There is variability by major.
Even if the gap has narrowed slightly in recent years, it’s still significant.
Concerns about the economic value of college are not unreasonable
The primary driver behind the perception that college is not worth the investment are costs. As the chart above shows, returns accrue to college graduates over the course of a lifetime. For many parents and new students, 20 years after graduation is a long time. And the future is uncertain. It can seem like a significant gamble.
Many institutions only post salaries for a graduate’s first year or two. The returns to a college degree accrue over the course of a lifetime. As the chart above shows, the difference between a college and high school graduate’s wages widen over the time.
Another issue is sticker price. State and federal policies incentive institutions to adopt a quasi-market based “sticker price” approach to pricing. Government grants, like the federal Pell or the Illinois MAP, are basically vouchers that can be used at any institution. Many college students have their tuition reduced through scholarships, grants, and other discounts. So the sticker price may distort the actual cost of college.
Despite these not unreasonable concerns, the benefits to a college graduate over the course of their lifetime are still high enough to justify the costs for a majority of students.
Earnings are not the only outcomes of college. And college is not the only path.
Higher education is associated with all kinds of non-economic benefits to individuals and society. These include health and wellness, the environment, human rights, and democratic engagement, to name a few. Walter McMahon has covered these benefits extensively.
A four-year degree is not the only path. Two-year colleges play a significant role in benefiting society economically and non-economically. As do vocational and technical training programs, union training, workplace training, and other pathways.
