Is a College Degree Still Worth the Cost for 2013

Is a College Degree Still Worth the Cost for 2013 - Much has been written lately concerning the rising

During the last generation, college costs increased 6.8 percent annually, while medical costs increased by a much more criticized 4.9 percent per year.

Also, state governments require families to pay a higher proportion of the total cost at state universities than they did for the previous generation.

Many students used to get grants for much of their college costs. Now, scholarships are less generous, and students must borrow much more. College graduates in Kentucky now start out with an average student loan debt of $23,000.

If you are in high school, you (and your parents) may be asking, “Is college really worth it?”

Yes, it is worth it.

Something has to give regarding the increasing cost of college education. But this is a separate issue from whether or not you should go. It is sad that you may graduate with the equivalent of an expensive auto loan and not have the car.

But in the long run, a college education is the smartest investment you can make.

Consider:

• A bachelor’s degree is the best “anti-poverty insurance” you can buy. Fewer than 4 percent of college graduates are poor. Kentucky’s overall poverty rate is 19 percent.

• It may not be as expensive as you think because most colleges still offer some financial aid. www.Collegecost.ed.gov can tell you what your true cost will be at any college once you deduct what you are likely to receive in scholarships.

Furthermore:

• The unemployment rate for people with a college degree is 4.2 percent vs. 9.1 percent for people without a college degree.(see HERE)

• 4.7 percent of college graduates do not have health insurance coverage, but 15.5 percent of those with just high school degrees are uninsured.

• The median annual income for someone with a bachelor’s degree is $50,360, compared to $29,423 for one with only a high school diploma.

• Of people with an annual income above $150,000, 82 percent have a bachelor’s degree; just 6.5 percent have no more than a high school diploma.

• You will probably earn twice as much money over your lifetime if you get a bachelor’s degree.

It is especially valuable to have a college degree in a recession.

You will be much less likely to be laid off or suffer a significant cut in pay. College graduates during tough economic times are much more competitive in the job market.

Remember, recessions come and go, but you will probably work for at least 40 years after getting your bachelor’s degree.

After graduation, you will eventually get a job that pays at least $30,000 a year. Entry-level jobs for your high school counterparts, at best, are going to be paying in the $11 an hour range, or less than $23,000 per year.

Your salary will increase faster because of your degree. Even in low-paying professions such as teaching or social work, you will eventually earn an annual salary in excess of $50,000.

Without a college degree, you are not likely to earn this kind of money, unless you get an associate’s degree in a lucrative field or complete an apprenticeship in a skilled trade. Both alternatives are worth consideration. Of course, the quality of your life, not only the amount you earn, will be enhanced significantly should you enter an intellectual environment for the next few years. (see HERE)


cost of college, student debt, and the impending bursting of the education bubble. The Enquirer carried a major piece last month laying out the financial reality.
Source : http://news.cincinnati.com/

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