The lifetime financial rate of return on a college degree has long been very high in the U.S. – much higher than the financial rate of return on other investments available (stock market, real estate, bonds, etc.).
And, of course, many of the best things about a college education and experience can’t be measured in dollars.
There has been some recent concern that rising college costs, rising debt levels for students and a changing job market are reducing the financial returns from college. But, in the current recession, college graduates have an unemployment rate about half that of the non-college educated workforce.
And, a new study reported in The Wall Street Journal shows that the financial returns to a college investment remain high – about 10 percent on average.
The study, using some great, self-reported compensation data from graduates, also shows costs and earnings by specific institutions. The top rates of return tend to come from top engineering schools and elite universities, but in-state tuition at good state schools remains an excellent investment.
As state higher education funding in Colorado continues to plummet, and as tuition increases more and more, these figures are worth keeping in mind.
Popularity: 2% [?]