College Costs...
But Neglecting College Costs Much More
"Educational attainment is the single most reliable indicator of
a person's income potential, attitudes and spending habits." According
to American Demographics (10/94), the gap between high school graduates
and college graduates is widening.
The Rewards of Higher Education
Level of Education and Full-Time Year-Round Workers
Median Annual Earnings Men 25 yrs. & Older Women 25 yrs. & Older
High School Graduates: men - $26,766 women - $18,648
Some College No Degree: men - $31,413 women - $21,987
Associates (2 yr) Degree: men - $32,349 women - $24,849
Bachelors (4 yr) Degree & Up: men - $43,855 women - $31,378
Just graduating from high school today is no guarantee of a decent standard
of living. Annual earnings of less than $23,00 are considered low-income.
For women, where equality in earnings still falls far short, a college education
is even more critical. Only with an associates degree or more, do women
move into middle-income earning levels.
Over a 40 year working career, the difference in income for a high school
graduate and a 4 yr. college graduate will total $635,560 for men and $509,200
for women. Subtracting the cost for 4 yrs. of public college (about $40,000)
still leaves a lifetime financial reward of half a million dollars for a
bachelors degree. For many students, much of college costs can be covered
by financial aid and scholarships reducing the cost of higher education
even further. Even if students must borrow to pay for college (the average
student borrows about $9,000 today), the return in lifetime earnings is
well worth the cost.
Few if any financial investments pay as great a return as a college education.
Any bank advertising a return of $16 for every $1 invested would be swamped
with investors, yet this is the rate of return on $40,000 in college costs
compared to the lifetime income for a college graduate. Can you afford NOT
to go to college?
