On Average, People Who Obtain Degrees from Quarter of Colleges Never Recover Cost of Education
August 31st, 2015Via: The New Yorker:
These types of studies, and there are lots of them, usually find that the financial benefits of getting a college degree are much larger than the financial costs. But Cappelli points out that for parents and students the average figures may not mean much, because they disguise enormous differences in outcomes from school to school. He cites a survey, carried out by PayScale for Businessweek in 2012, that showed that students who attend M.I.T., Caltech, and Harvey Mudd College enjoy an annual return of more than ten per cent on their “investment.” But the survey also found almost two hundred colleges where students, on average, never fully recouped the costs of their education. “The big news about the payoff from college should be the incredible variation in it across colleges,” Cappelli writes. “Looking at the actual return on the costs of attending college, careful analyses suggest that the payoff from many college programs—as much as one in four—is actually negative. Incredibly, the schools seem to add nothing to the market value of the students.”
…
If almost everybody has a college degree, getting one doesn’t differentiate you from the pack. To get the job you want, you might have to go to a fancy (and expensive) college, or get a higher degree. Education turns into an arms race, which primarily benefits the arms manufacturers—in this case, colleges and universities.
Related: 7 Million People Haven’t Made A Single Student Loan Payment In At Least A Year
