It is no secret that college tuition in America is on the rise, and at a much faster rate than average inflation. In fact, according to an article that appeared in Forbes, “College costs have been rising roughly at a rate of 7% per year for decades. Since 1985, the overall consumer price index has risen 115% while the college education inflation rate has risen nearly 500%.”

This has left hordes of recent college graduates wondering, was my degree worth it? Student loan debt in the U.S. is upwards of $1.4 trillion, and the average debt for individual students is $37,000 and growing. In spite of nearly annual tuition bumps across the country, millions of students continue to enroll. This suggests that, for many, college still seems worth it.

So how can we quantify if college is “worth it”? Let’s look at an example provided to us by John Green on his popular YouTube channel.

On average, college tuition in the U.S. ranges from around $10,000 to about $30,000 per year. (Luckily, in Utah, that number is often much lower!) If you’ve taken out some student loans to help pay for that tuition, you will pay interest. So let’s say your total college tuition cost is somewhere around $120,000. You then have to factor in the opportunity cost of going to classes instead of working, and include room and board, transportation, food, club fees, etc. In all, to make college “worth it”, you may have to make $175,000 more once you enter the workforce than you would have made had you not attended a four-year college.

If you work for 50 years, you would have to make $1.75 more in per-hour earnings to make your degree “worth it.” This means that in most cases, college will still be financially worth it in the end. But human life is not purely economic. Beyond the monetary advantage it can give you, college can benefit your life in a myriad of ways.

• Jobs that require college degrees tend to have better benefits. This includes benefits like health and dental insurance, retirement investment, travel, and other perks.
• It can lead to higher job satisfaction. Not every job is created equal, and you may be able to find more satisfaction and happiness in your work if that work is doing something you’re passionate about. College can help you get those jobs.
• People with college degrees tend to live healthier lives. This is because they make healthier lifestyle choices such as exercising and avoiding smoking. Building healthy habits can lead to longer, happier lives.
• College fosters independence. It gives you a chance to spread your wings and gain confidence and grit.
• It allows opportunities to make friends and network. This can help lead to success later in life. You will meet all kinds of different people, who may have similar interests and goals.
• Helps improve communication skills. All those papers and presentations may seem pointless, but you will graduate college with a better idea of how to present yourself and your ideas to others.

Access to education, albeit very expensive education, is still a good option and a great opportunity. If you need a student loan, USU Credit Union is here to help. We are offering student loans with a rate of 1.99% to Utah State students for 2017 summer and fall semesters. Call, come in, or visit our website to learn more.

Sources:
www.rasmussen.edu
www.forbes.com
www.cnbc.com
www.census.gov
www.debt.org
www.youtube.com