“TO BE SUCCESSFUL AND MAKE GOOD MONEY, YOU MUST HAVE A COLLEGE DEGREE.”

You’ve probably heard some version of that declaration since you were old enough to understand words. So, you grew up figuring you’d go to college.

But now that you’re grown up and it’s time to start looking at which university or college you’ll attend after graduation, you realize that higher education can be very expensive. Haven’t we all heard the stories—which might be starting to seem scarier than a horror flick—about college graduates whose good jobs might as well be minimum wage gigs because most of their paychecks go toward paying off student loans—for a decade?

In addition, you’ve probably heard that some very popular employers—Apple, Google and Netflix, to name a few—have stopped requiring a degree to get in the door.

So, you could be forgiven for wondering if you really need a college degree. Well, stop wondering! It turns out that earning a college degree really, truly does pay off. And not just in your eventual paycheck, but in less visible ways that benefit those around you, from your local community to the world at large.

And then there’s the question of whether to save some money by going to a community college for the first two years and transferring to a four-year university. Is it really a better value? The statistics might surprise you.

Here are some real-world numbers and facts to ponder as you consider what your next move should be once you have your high school diploma in hand.

ALL THE NUMBERS

• • College graduates earn an average of $78,000, while those with a high school diploma alone earn $45,000. That’s an annual wage premium of $33,000.
  • Take a look at the financial advantage of a college degree in this Bureau of Labor Statistics breakdown of median weekly earnings by education level:
    • $712 with a high school diploma
    • $774 with some college, but no degree
    • $836 with an associate degree
    • $1,173 with a bachelor’s degree
  • Those who earn a four-year degree will earn an average of nearly $2.3 million in their lifetimes—84% more than those with a high school diploma only.
  • A college graduate is 177 times more likely than a high school graduate to earn $4 million or more during his or her lifetime.
  • Millennial workers with a high school diploma can expect to earn only 62% of what the typical college graduate earns.

  A 50-year-old college graduate earns an average yearly salary of $56,000, while a 50-year-old high school-only graduate earns an average yearly salary of $29,000.

JOB SECURITY

• Workers who hold a bachelor’s degree are half as likely to be unemployed as workers with just a high school degree.
• When unemployment was at its highest in 2010 (during the Great Recession), the unemployment rate for recent college graduates was 6.9%, compared with 15.8% for all young workers.
• Today’s jobless rate for those with a bachelor’s degree is 5%.
• 99% of jobs created since the Great Recession went to people with at least some post-high school education.
• Bachelor’s degree holders are 5 times less likely to fall into poverty as those who hold a high school diploma.

QUALITY OF LIFE

• If you have a bachelor’s degree, you’re 47% more likely to have health insurance through your job—and your employer will contribute 74% more to your health care.
• Studies suggest that those who attend at least some college could live seven years longer than those with no post-high school education.
• College graduates are more likely to own homes; three-quarters of bachelor’s degree holders are homeowners, compared to 64% of those with high school diplomas.
• In a time when pension plans are mostly history, college graduates are more likely to contribute to a 401(k)-type retirement plan. Even when high school graduates and college graduates had similar plan access and incomes, the college grads contributed 26% more to their retirement plans.
• Since companies tend to cast a wider recruiting net for high-skilled jobs, college graduates are more likely to have the opportunity to move to find work than those with a high school-only education.
• Over a lifetime, the average bachelor’s degree holder will contribute $278,000 more into their local economy than workers with only a high school diploma. They’ll also contribute $44,000 more in state and local taxes, and $771 more in annual charitable donations.
• Workers who earn a four-year degree can lift wages for other workers. It’s been found that a 1% increase in the college-educated workforce increased wages:
  • 2% for those who did not complete high school
  • 3% for high school graduates
  • 2% for those who completed some college
• Bachelor’s degree holders average $1,304 per year in charitable donations, compared to the $533 contributed by those with a high school diploma—a good example of how a degree can help you have a more positive impact on your local community/economy.
• 3% of bachelor’s degree holders volunteer for local causes and organizations, compared with 17.4% of high school graduates and 28% of those with some college.

START OFF RIGHT

Some students decide to start off attending a two-year community college to save some money, with the intention of transferring to a four-year university. But this strategy might not be the best idea – or the best value. Did you know that only 30% of students who attend community college and plan to earn their bachelor’s degree actually transfer to a four-year institution?

By comparison, the 2020 Completing College report from the National Student Clearinghouse Research Center (NSCRC) found that over 67% of students who begin their studies at four-year public schools complete their degrees, and nearly 77% of students beginning at a private, non-profit four-university earn their degree within six years!

Not only do students who begin their education at a four-year institution have higher graduation rates, they also have more resources and an improved student life. Four-year universities offer more “bang for your buck,” with competitive sports teams, a variety of student clubs, a broader choice of degrees, and residential opportunities. Most students find that it’s easier to make friends and participate in student life at a four-year university. And, because four-year universities offer more financial aid options, the difference in cost can be much lower than you think.

Of course, statistics don’t tell the whole story. College is where you go to find yourself – and more often than not, the you who comes out with your degree, ready to take on the world, is not the same you who went in four years earlier. During those years, you’ll find friends, mentors, knowledge, and inspiration that will help you lay the foundation for a happy, secure and fulfilling future.

And trust us, there’s nothing more priceless than that.

Sources:

“How Much Is a College Degree Worth?” by Alison Doyle, thebalancecareers.com, June 25, 2019.

“How does a college degree improve graduates’ employment and earnings potential?” by the Association of Public & Land-Grant Universities, aplu.org, undated.

“Pay gap between college grads and everyone else at a record,” by Christopher S. Rugaber, usatoday.com, January 12, 2017.

“The Economic Impact of College Degrees,” by Abi Tupa, collegepossible.org, August 23, 2018.

“Is College Worth It? Going Beyond Averages,” by Douglas Webber, PhD, thirdway.org, September 18, 2018.

“New York Fed Says College is ‘Worth It’ Albeit With Caveats,” by Shelly Hagan, Bloomberg.com, June 11, 2019.

“Going to college is one of the best investments you can make—even if it doesn’t feel like it,” by Andy Kiersz, businessinsider.com, June 6, 2019.

“Nearly half of indebted millennials say college wasn’t worth it, and the reason why is obvious,” by Hillary Hoffower, businessinsider.com, April 11, 2019.

“College grads still earn more than workers with no university degree. This map shows the states with the widest salary gaps,” by Allana Akhtar and Andy Kiersz, businessinsider.com, July 15, 2019.

“20 jobs you can get with a high school diploma,” by CareerBuilder, careerbuilder.com, June 23, 2017.