Is College Really Worth It? What Does The Data Say?
Read this before deciding whether you should go or not
We all know how expensive college loans are these days. This leads many to ask whether college is still worth the investment. Added to that we have some people that make millions, or even billions, without even going to college.
What’s really going on behind the headlines?
Before I dig into the data I need to point out a few things that can distort the data. When deciding on whether to go to college you need to take other factors into account along with what the data shows.
You need to think carefully about what subject to study and whether that subject will lead to a better paying job in the future. Not all college degrees are worth having. Choose wisely.
You also need to consider your personal circumstances. You may be able to get a great job or build a business without the need for a degree.
I’ll go over the data for both income and net worth, comparing graduates with non-graduates.
This data is taken from the Federal Reserve’s Changes in U.S. Family Finances from 2016 to 2019.
The figures below are for 2019.
I mention both median and average figures below. To see an explanation of these terms, head over to this article.
Educational levels are split into categories — no high school diploma, high school diploma, some college, and college degree.
For the purposes of this article, it’s better to focus on median income and net worth, as the averages are skewed by some very high earners.
Income
No high school diploma
Median income: $30,800
Average income: $39,600
High school diploma
Median income: $45,800
Average income: $63,800
Some college
Median income: $51,200
Average income: $79,000
College degree
Median income: $95,700
Average income: $176,500
Looking at the income levels above it is obvious that getting a college degree gives you a much higher earning power. Does that mean that everyone should go to college? No.
What’s missing from this data is other information that may determine your income level. For example, someone like Mark Zuckerberg can drop out of college and go on to earn billions. It doesn’t follow that anyone can do that. Getting a college degree may not make any difference to someone like Mark Zuckerberg, but it can make a huge difference to the average person.
What’s also not mentioned above is the type of college that was attended and subjects taken. They can both make a huge difference to future income.
But it’s clear that overall there is a big benefit to getting a college degree. Only you can decide what will work for you. I hope these figures help in that decision.
Net Worth
No high school diploma
Median income: $20,500
Average income: $137,800
High school diploma
Median income: $74,000
Average income: $305,200
Some college
Median income: $88,800
Average income: $376,400
College degree
Median income: $308,200
Average income: $1,519,900
As with the income figures, the net worth figures also show that there appears to be a massive benefit to getting a college degree. All the comments made above concerning income also apply to the net worth figures.
I can also add some anecdotal evidence of my own. I know people from all the above groups and can confirm that what the above figures show is also true for the people I know. Those that have college degrees are doing much better in life. They have better-paying jobs and live in more expensive areas.
If you’re considering going to college, will the data above help with your decision?
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