Is a College Degree Worth the Cost?

Is a college degree worth the cost?  Articles, studies and reports constantly highlight the high cost of a college education and the resulting debt with which so many college graduates find themselves encumbered. The question inevitably raised is whether the ends justify the means.  Do college graduates, despite their debt, find themselves better off than their peers who bypassed the college route?

While there are exceptions to every rule, statistics clearly show that, for most students, the more you learn the more you earn.  Analysis of U.S. Census data for 2019 indicated that, in every state, median weekly earnings was closely correlated with the level of the one’s education.  Nationwide, the median weekly salary of those with a high school diploma was $730, those with an associate’s degree was $862, those with a bachelor’s degree was $1,198, those with a master’s degree was $1,434, and those with a doctoral degree was $1,825 – two and half times the weekly salary of high school graduates with no further education.

College Internships May Be Key To Career Success

Some of the most intriguing companies to students preparing to enter the job market – Facebook, Amazon, Google and Microsoft – are offering internships with monthly salaries topping at $8,000. 

While it’s the experience, in the long run, that is the most valuable, it’s always a plus to students when they are paid for their internships and some companies are compensating students most generously.  The employment website Glassdoor recently listed the highest paying internships over the past year and found that tech companies comprised 44% of the list, with finance and consulting firms close behind.

The social media company, Facebook, paid interns at a median monthly rate of $8,000, while Amazon, Salesforce, Google, Microsoft, Uber, Bloomberg LP, and Capital One all paid at a median monthly rate varying between $7,725 and $7,000.

Understanding College “Yield” Can Have Big Rewards

Virginia Tech, a highly regarded university most popular for its engineering programs, did an amazing job this year of successfully identifying which applicants would enroll if accepted.  It did too good of a job, in fact.  Virginia Tech is experiencing a historically high “yield rate” – which is the percent of accepted students who actually enroll.   About 8,000 students accepted offers to enroll for the fall of 2019 while the university was targeting an enrollment between 6,600 and 6,700 students. 

Virginia Tech addressed the situation by sending an email to the accepted students last week offering financial incentives to those who would agree to postpone their enrollment date.  It offered funding for community college classes, internships, gap years, and summer sessions at Virginia Tech to accepted students who would delay their arrival on campus by a semester or a year.

College Job Can Result in Long Term Financial Gain

Students who work during their college years earn, on average, $20,000 more each year for their first 15 years after graduation than do students who did not hold a job while attending college. That’s the findings of a study recently published by the Education and Employment Research Center at the Rutgers School of Management and Labor Relations.  It reportedly didn’t matter whether the student had worked part time or full time.  

There are several reasons for the wage premium, according to the report.  Some employers value on-the-job experience more than a student’s major or GPA. Also, a job in college can provide students with valuable references and networking connections.  And students who learn early to successfully balance academic and work responsibilities often have valuable time management skills to bring to their professional career.