Is College a Good Investment

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College has become one of the biggest expenses facing families. In 2010 the National Center for Education Statistics estimated that the tuition and room and board required for a four year degree from the average college cost about $32,000. This was the average state or private school elite institutions cost far more. 

 

Not surprisingly many people are wondering if college is actually worth it or not. After all successful people such as cooking diva Rachelle Ray and actress Halle Berry never went to college at all. Bill Gates, Steven Spielberg, Larry Ellison, Mark Zuckerburg and Michael Dell are all billionaires and they dropped out of college. Simply getting a four degree is not necessarily a key to success or happiness.

 

Many people ask this question because going to college or sending kids there increasingly involves a lot of debt. It now takes many graduates longer than four years to pay off their college loans. These loans are one of the few kinds of debt that cannot be included in bankruptcy so they have to be paid. So is college really worth the investment or not?

 

College can Pay Off

On the surface it seems like it is the Christian Science Monitor reported that people with just a high school diploma were three more likely to live in poverty and eight times more likely to be on welfare than college grads. This was probably because college graduates were more likely to have a job than high school grads.

 

The average college graduate also earns three times more than the average high school grad. In 2008 it was estimated that the average American college graduate made around $55,700 a year compared to around $33,700 a year for the average high school graduate. So in financial terms a four degree will pay off the average person.

 

College graduates were also healthier because they were less likely to smoke and more likely to eat right and exercise. College grads also did a better job of raising their children.

 

When College is not a Good Investment

This being said there are cases when a stint at a university may not be the best of parents’ money or a child’s time. There are many people who would be better off leaving the money in the bank and pursuing other options.

 

Highly intelligent and creative people with an entrepreneurial bent might be better off going straight into the workforce. Many of them actually get bored by traditional education and feel constrained by it. Persons interested in technology might be better off studying at a trade or technology school.

 

Those interested in art or music or a profession such as acting might be better off moving to the big city to pursue their dreams. A person that’s interested in writing or painting might be better off traveling. Many younger people would be better off staying at home or getting their own place and looking into cheaper alternatives to traditional schools.

 

Trade school, night schools, community colleges and commuter colleges can all be good alternatives to traditional universities. These can give a person some education at a lower cost. Trade school could be a good alternative because it will give the child a marketable skill he can use to support himself while he’s pursuing his dreams. Something to remember is that a person can always go back to school later on if they want a more advanced degree.

 

Finally there are a lot of people who would be better off putting off college for a few years and working or concentrating on other pursuits for awhile. College is a poor investment for someone who is not interested in it.