Is College Still Worthwhile?

Language is a living construct. New words are continually added, older words fall out of general usage, and some words change their meanings along the way. On the latter front, some of my younger colleagues use "adult" as a verb. Responsible, necessary but dull activities like paying bills and repairing our homes qualify as adulting.

Every June, hundreds of thousands of university graduates make the transition from studying to adulting. Most will now need to focus on finding steady work, living independently and budgeting, with student loan payments occupying a large portion of newly-formed household budgets. As the bills pile up on those young adults, they may be left pondering a difficult question: was my degree worth pursuing?

Not long ago, the question would have sounded absurd. For nearly as along as the data have been tracked, degree holders could expect better employment prospects, higher wages and an all-around higher quality of life for themselves and their future children. Getting a degree was well worth the delayed entry to the working world.

Unemployment Rate by Educational Attainment and Avg Balence per Borrower

Today, bachelor's degrees are coming at a high cost. The lowest yearly expenses - at public universities for in-state students - now average $20,000. Elite private institutions are approaching $100,000 per year. In practice, scholarships help many students avoid paying sticker prices, but very few get a full ride. As a result, the average graduate in 2023 started their earning years with debt of $33,500.

Not every enrollment ends with a diploma. Whether the student faced health troubles or simply wasn't ready, an estimated 25% of first-time bachelor's degree seekers leave without finishing a degree. Those students are left with the worst possible outcome: educational debt, no credentials and years of foregone wages and on-the-job experience. Those students are most likely to end up in default, and may be left living with impaired credit scores.