From time to time you may have people attempt to convince you that you don’t really earn that much more by attending college. People love telling stories about “that guy (or gal)” that attended college only to end up serving coffee to them. No doubt this happens. Due to recent economic issues, it is happening more now than it should be. Yet, despite what you may hear from time to time, people who attend college have much higher earnings than those who stop their education after high school.
While college graduates may initially have trouble breaking into the job market, they usually do find jobs. Once they are hired something interesting happens. Even with a college degree that isn’t viewed as being particularly valuable, they are able to get promotions within companies that are only available to those with college degrees. This factor dramatically alters their earning profile throughout their working years. So while someone might be laughing at the college graduate working at a coffee shop, realize that eventually that he or she will likely land a job within a company and move up through the ranks.
In fact, research by the US Census Bureau has shown that having a college diploma will double your earnings. This study showed that a college degree has a substantial amount of value.
An additional point worth considering is that once you’ve attended college, it is far easier and quicker to go to graduate school. Now keep in mind that those who attend graduate school earn even more than their college graduate counterparts. Pursuing an MBA or a law degree is a much faster option for you to consider if you already hold an undergraduate degree.
The facts overwhelmingly support the fact that those who attend college will earn more. With all of this stated, there is no doubt that there are some recent issues that threaten to jeopardize these points to an extent. College tuition is rising at a truly alarming and perplexing rate that far outstrips the rate of inflation. No one seems to be clear as to why this is the case. This issue translates to higher tuition rates for new students, which has ramifications when it comes to selecting a career. In the future, it may be necessary for high school seniors and college freshmen to be much more concerned about their degree program and their earning prospects once they graduate.
Currently, a very large number of students are saddled with large student loan debts that they can’t pay. The overwhelming majority of these students took out loans assuming that there would be jobs available for them, as recent history dictated that this would be the case. Their assumptions were reasonable, but the reality of the situation has proved different.
While the future may be murky, it is quite likely that out of control college costs will be put under control for a variety of reasons. The odds are that those who attend college will still earn far more than their counterparts. When one looks at the lifetime earnings of college graduates, the debt that they incurred seems modest. However, if something isn’t done to bring college cost under control, this situation may change in the years to come.
It’s true that technically, you don’t need to choose a major until your third year of college. But there are a lot of advantages to selecting your concentration before you even set foot on campus, while you’re still in high school. Choosing early gives you the chance to take relevant AP courses and SAT subject tests that will let you test out of lower-level prerequisites, saving thousands of dollars on course tuition. You can also take the opportunity to find relevant internships early in the game, which will make you look more attractive to employers when you’re ready to find a full-time job.