Is College Worth It? 5 Factors to Consider

As the cost of higher education continues to rise and student debt reaches unprecedented levels, many are reassessing the traditional path of pursuing a four-year degree – asking “Is college worth it?”.

While college has long been viewed as a ticket to better job prospects and higher earnings, changing workforce dynamics and the emergence of alternative career paths have led to a growing debate about the true value of a college education.

Considering the latest research and insights, let’s dive into the analysis on whether college is still worth it.

The rising cost of a college education 

The cost of college has increased by more than double over the last forty years. Today, it’s estimated that the average cost of college in the United States is $38,270 per student per year, including books, supplies, and daily living expenses.

Closer analysis reveals that, taking it account student loan interest and loss of income, investing in a bachelor’s degree can ultimately cost over $500,000. That’s a huge sum of money that could be put towards a down payment on a home or starting a business.

Changing perspectives on whether a college degree is worth it

For generations, parents have encouraged their children to pursue higher education, viewing it as the golden ticket to financial stability, career advancement, and social mobility.

This deeply ingrained belief has led millions of students to flock to universities each year, often without questioning whether this path aligns with their individual goals and circumstances. But as the landscape of work and education evolves, it’s crucial to examine whether this one-size-fits-all approach still holds true for everyone.

According to a recent Pew Research Center survey, public sentiment is now mixed on the value of a college degree. Roughly 49% of respondents said it’s less important to have a four-year college degree today in order to get a well-paying job than it was 20 years ago. And only 22% say the cost of getting a four-year college degree today is worth it even if someone has to take out loans.

At the same time, new research is emerging to show that young adults who didn’t go to college are actually doing better in some key areas than they have in the past. One study even demonstrates that the earnings of young men without a college degree have seen a slight uptick over the past 10 years.

That said, there is still overwhelming research to show that those with a bachelor’s degree, tend to generally earn more on than those without a four-year college degree and face lower levels of unemployment.

It’s important to understand that generalizations aren’t true for everyone. And just because someone doesn’t hold a college degree doesn’t mean they won’t earn more money than someone with a higher educational attainment.

There are plenty of examples out there of people who go to trade schools and earn a comfortable living. Many can even become successful by starting their own businesses. On the other hand, there’s no shortage of examples of college graduates working minimum-wage jobs, drowning in debt, and being unable to afford a home.

The key to answering whether college is worth is determining if college is right for you. Consider your career goals, budget, skills, and ultimately, what you hope to gain from a higher education.

Recommended: 24 Legit Jobs That Pay $50K a Year in 2024 (Without a Degree)

Is going to college worth it? 5 factors to consider

You should view college degrees as an investment. As with any investment, there are risks involved. We’ve broken down some of the major questions you should consider before taking on the risk of a college education and all the potential cons of going to college.

1. Is your major valuable?

If you think about college as an investment, then you need to consider the potential payoff. Look into your major and at the career path of people with the same major as you. For starters, what are the salary projections? And would it be worth the student loan debt?

It’s wise to do your research and be on the lookout for some of the most profitable majors.

With the rise in AI and other technologies, it can be hard to predict the future. Nevertheless, you’ll want to consider college degrees in industries that show future potential and also have the prospects to pay off. This can be computer science, engineering, science, and mathematics.

2. Could you afford college without loans?

Student loans are not the only way to finance college. It may seem like an easy choice at the moment, but pursuing other ways to fund your tuition may help lower debt and increase the overall return on investment of your college degree.

Many states offer grants and scholarships to attend in-state schools. You can also save money by attending community college for the first two years and then transferring to a four-year university. 

It may also be worthwhile to explore options to work while you’re in college or get a side hustle to help save money. If you have ever considered the military, the GI Bill often covers many forms of college and trade schools. 

3. How many years will it take to pay off your loans?

Once you have an idea of your career path, then you can get a sense of how much money you will make. You can develop a budget, and from there, you should get a sense of how long it should take to pay off the loans.

You can find a student loan calculator here. Be sure that you are comfortable with this length of time before committing to student loans. 

4. Only take out loans you can afford to pay

Are loans, grants, and scholarships not an option? Only take out loans that you can afford to pay. A college degree is only worth the debt if you can manage to pay off the loans. Look for alternative ways to pay for your degree. Another option is to go to school slowly and pay as you go. 

5. It’s worthwhile exploring alternative paths

Explore options like trade schools, vocational training, or apprenticeships. These paths can lead to fulfilling careers without the hefty price tag of college. Consider fields like skilled trades, healthcare, or technology, where hands-on training and certifications can quickly translate into in-demand jobs with competitive salaries.

What to consider before taking out student loans

Some jobs require a degree and can help open doors in your career that may be closed to someone without one. However, you may be stuck paying for your degree if you can’t get a job. You should weigh the financial and academic risks and decide if the degree is worth the risk. Here are a few things to consider before getting a student loan.

1. Borrow the minimum

We know college can be tough, and it might feel nice in the moment to have a little more money. But ideally, you want to borrow the minimum on your loan to avoid needless debt and excessive interest charges.

It’s best to graduate with the least amount of debt possible because this will minimize your financial risk later.

2. Consider federal student loans over private student loans

If possible, it’s best to opt for federal student loans over private student loans. Federal student loans generally offer more borrower protections and flexible repayment options than private student loans.

Federal student loans often have lower interest rates and may qualify for income-driven repayment plans or loan forgiveness programs. Private loans typically require a credit check, have higher interest rates, and may lack the same level of borrower benefits.

There are several options when it comes to federal student loans and financial aid options. Make sure to visit the official government’s website FederalStudentAid for more information on the different types of student loans available and how to apply.

3. Talk to an academic advisor 

Academic advisors know the ins and outs of the financial aid game. They can coach you through the academic and financial risks. They also know about grants, scholarships, and other financial programs that may help you finance your education.

It’s worthwhile visiting your school’s academic advisor to discuss your college and career prospects.

Is college worth it for you? How to decide

Ultimately, the decision of whether college is worth it is a deeply personal one. There’s no one-size-fits-all answer. Weighing factors like career goals, financial implications, and personal growth is crucial.

It can be helpful to talk to academic advisors, individuals in your aspirational field, and even financial advisors to understand the pros and cons of going to college for a specific degree.

Remember, college isn’t the only path to success. It’s worthwhile to explore all your options, including trade schools, vocational training, or apprenticeships. By carefully considering your individual circumstances and aspirations, you can make an informed decision that sets you up for a prosperous future.

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