Average Cost of Tuition
Typical costs vary widely by type of institution. According to the College Board, the average cost of college tuition and fees (which may include the library, campus transportation, student government, and athletic facilities) for the 2021-2022 school year was $38,070 at private colleges, $10,740 for state residents at public colleges, and $27,560 for out-of-state residents attending public universities. These numbers do not include housing, meals, textbooks, or school supplies which could easily tack on another $10,000 to $18,000 a year. Multiply those numbers by four years of college, and you are looking at a hefty college bill. It’s no wonder that student debt levels topped $1.6 trillion in 2022.
The Pay Gap
According to the Bureau of Labor Statistics, the pay gap between individuals with a four-year degree and those with a high school degree is still significant. Those with a four-year college degree earn a median weekly salary of $1,334, whereas employees with a high school degree earn a median $809. The difference is even higher when comparing employees with doctoral degrees to those with some or no college degree.
How Your College Major Affects Earnings
It’s not just about going to college or not, though. The degree you choose also has a significant long-term financial impact. The same Georgetown study revealed a gap of $1.8 million in lifetime earnings between the highest- and lowest-earning majors. The top-paying majors unsurprisingly include architecture and engineering; computers, statistics, and math; and business. The majors with the lowest median earnings are in education, psychology and social work, and the arts. In the current digital economy, the future of work is changing fast and one thing that emerges is that despite specialties and core areas of learning, some fields are fusing. A competitive candidate is one who is curious to learn, and that may mean intersecting technology with finance, business with social studies, and math with psychology. A lot of success happens in these intersections.
The Bottom Line
Before you decide that the price tag on college is too high, be sure to look at what the statistics show. The financial benefits of college, on average, far outweigh the immediate costs. Compare the costs of college vs. work after high school, too, before making any decisions. If you are concerned about saving for college, check with a financial advisor to discuss a college savings strategy.
