Is College Worth Dear Price of Getting Admitted - Research Paper Example

College is worth Over the recent years, there has been a raging debate about the worth of a college degree especially in the current hard economic times. This has mostly been carried out by policy makers and the media in general. One major particular issue that has received a considerable amount of attention from a wide spectrum is the increasing cost of college education. In fact, college tuition has risen by over 50% in the last 3 decades, something that has prompted some individuals to question whether college is still worth the dear price of getting admitted. Inspite of all this college education is a worthy investment since it is viewed not only as a challenge that changes one’s life but also an endeavor in today’s society. It is a well known fact that college graduates earn much more money than high school graduates. A research finding by The Hamilton Project in October 2012 confirmed that the gains from college education are much higher than of any other investment such as real estate, bonds and stocks. It was also found out that the returns from college have largely been steady over the past thirty five years, clearly demonstrating that the increasing cost of tuition has been offset by the amplified earning premium for degree holders. Thus in most respects, college education has never been more important. College graduates have always earned more money and find it easier in finding employment than their counterparts who are high school graduates. What however may be less instinctive is the fact that these gaps have been increasing recently. Thus for instance a youthful college graduate took home $4,000 more each year in the 1980s, inflation adjusted, than somebody of similar age who had no college education (this was an average across the whole population and not just those working).This figure has however climbed to $12,000 each year over the past 30 years(Greenstone,Looney,2012). Whereas there is evidence about the lifetime value of increased education, cynics are increasingly pointing to increasing tuition costs to argue that college is not as good of a venture as it once was. It is true that there has been nearly 50% increase in cost of college over the last 3 decades (calculations courtesy of National Center for Education Statistics) which could be overstated. Foremost this increase in tuition does not cater for recent financial aid increases. Therefore, whereas the sticker cost of college may have risen, it is not clear to what scope the cost to students as well as their parents has risen. In fact the actual cost of a 4 year degree has stayed reasonably constant over the past 15 years, courtesy of College Board. It is also misleading to entirely focus solely on the cost of college, regardless of the size of exact rise tuition since it gives only half the story .Specifically, there has been a dramatic increase in monetary benefits of college education over the past few decades. Graduates in the 1980s could expect to make around $260,000 more over their lifetimes as compared to their high school counterparts. In contrast, individuals beginning college in 2010 expected a lifetime increase in take home pay of over $450,000 as compared to their high school graduates. All these estimates are adjusted for inflation and the fact much of this extra return will come much later in the life of the graduate. Even when assumptions are made that all students in reality paid tuition at the quoted rates, the end result is: whereas college may be 50% more costly than 3 decades ago, the rise in lifetime take-home pay brought about by a college degree is 75% higher. Thus, even though the cost of college is rising, the benefits of a degree –and by extension, the price of not attending college –are rising even faster. The benefits of investing in college education thus are much higher. In their June 2011 release, the Hamilton Project projected that college investment in a 4 year period earns a return of over 15%.Even though this could be a decrease from almost 18% in the late 90s. Going to college still continues to be one of the best investments one can make (Greenstone, Looney, 2012). Thus earning a 4 year college degree still continues to be a valuable investment for the average individual. This is supported by statistics from US workers that show the advantages of college in regard to higher incomes far overshadow the expenses of a degree, calculated as tuition and earnings lost while in attendance of school. It has been found out that the average graduate incurring annual tuition fee of $20,000 can recover the expense of schooling by the time s/he is 40 years. Afterwards, the difference between incomes goes on such that the average graduate makes over $800,000 more than the high school peer by age of retirement (Daly, Bengali, 2014). The earnings from college, is more than twice the average return over the past six decades experienced in the stocks(6.8%), and over 5 times(2.9%) the earnings from investments in corporate bonds, gold(2.3%),government bonds(2.2%) or )0.4% for housing. Thus the argument that college education is no longer a good investment isn’t rooted in fact. This therefore means that if going to college in the ‘80s was a brilliant idea, then it still is a brilliant idea even today. Apart from higher pay, higher degrees provide more and better job opportunity. Disparities in rates of employment amongst college graduates and non-graduates have not confirmed as clear of a development over this period, with one major exception. Recently, especially in the outcome of the Great Recession-college education has turned out to be an increasingly significant determinant of an individual’s employment status. A college graduate is today almost 20% points more expected to get employed than somebody armed with only a diploma from high school. This “employment gap” existing between high school and college graduates is the biggest in America’s history. Bureau of Labor Statistics data indicates that graduates from high school constantly face high unemployment rates sometimes around twice as high as those faced by college graduates. Workers who have got lesser levels of education are the ones who suffer most during economic down times when the labor market takes a dip such as in recessions. (Hoynes, Miller, Schaller, 2012).This therefore clearly indicates that in bad and good times, high school graduates face a probability of low employment as compared to college graduates. Currently there is a high demand for various jobs and employers have got a wide variety of applicants to choose from. Employers will always go after those who have a college degree, and this is where having a BA wins in a big way. It gets an individual in the door guaranteeing a competitive edge against other candidates. The more educated an individual becomes, the more likely it is that s/he will always be employed in a good job. According to one particular estimate, there will be 19 million more jobs for workers who are educated than there are skilled people to fill up them by the year 2028.Currently most well to do jobs need more than a high school diploma. Companies want to employ individuals who are capable of thinking and solving problems. Education past high school provides an individual with plenty of other benefits that comprises of meeting and interacting with new people from diverse backgrounds and cultures, participating in new opportunities so as to explore one’s interests and at the same time savoring as well as experiencing success. Current and future trends in the employment sector state that pursuing higher education is one of the best employment decisions one can make. High unemployment rate has left several Americans wondering whether the rising cost of college makes it a good bargain for modern day young adults, aged 25 -32 and also called the millennial generation. However there is solid evidence showing that in fact a 4 year degree really pays off. According to new data released by Pew Research on 11th February 2014, the gap in take home pay amongst college and high school graduates has never been bigger especially in the modern era. When asked by Pew Researchers whether a college degree is worth the effort, time and money, many millenials gave a resounding yes.9 out of 10 having at least a college degree answered that college education had already paid off and if not will most likely do it in future. Moreover in the employment sector, several employers see a 4 year degree as a fundamental requirement and a must even for such lowly jobs as clerical. Thus even if there may arise doubts about the worth of college education-several millennials in the survey done by Pew claimed that lack of a college degree was much worse. Thus the future quite bright for the college educated and the picture is constantly bleaker for the workers with less education (Don, 2014). A recent study released April 2014 by CareerBuilder projects a positive image where 57% of employers said they plan to employ new graduates from college, up from 53% in 2013 and significantly up from 44% in 2010.In a survey done in February and March, the National Association of Colleges and Employers announced their projections in April 2014 showing that employers plan to recruit 8.6% more college graduates from 2014 class for their operations in the US than they did from last year’s class. Thus a college degree has always been a safe bet and one can never go wrong as long as you are determined and constantly searching for jobs. Employers are also continuously searching for fresh blood and minds to fill in various emerging departments in their companies, which can only be tapped from college educated individuals (Susan, 2014). Attending college provides young adults with an opportunity to learn interpersonal skills. It is only in an environment like that of college where students have got the chance to interact and intermingle with other students as well as faculty, join various student clubs and organizations, participate in debates and discussions. Developing interpersonal relationships that are mature is among the 7 stages that students advance through as they go to college, thus claims Arthur Chickering in Seven Vectors. In a survey done in 1994, featuring some 11,000 college students rated “interpersonal skills” as being the most significant skill applied in their daily living. Technology entrepreneur, MBA, entrepreneur and academician Vivek Wadhawa says that, “American kids usually party (of course in college).But you know something else, by partying, they learn social skills .They learn how to interact with one another….They build up skills which make them inventive as well as innovative. Americans are thus the most innovative people globally due to the education system.”Thus apart from coursework, students are able to learn so much more such as interacting and intermingling with diverse cultures, races, backgrounds and personalities which not only develops in them problem solving skills but also interpersonal skills, which are so crucial for surviving in the modern day world. Learning is always worthwhile. Learning has never hurt anyone and as staff writer for the New Yorker, Rebecca Mead, states, college trains students” to nurture critical thought; to expose people to the signal achievements of mankind; to develop in them a capability not just to actively listen but also intelligently respond, “all of which “are mind habits…from which a carrier of letter, no less than college professor, may derive self-worth sense.” (Rebecca, 2010). 74% of students in 2011 stated college assisted them grow intellectually and 69% claimed college assisted them grow up and mature as individuals .Visiting Professor (Eastern Nazarene College) Jonathan D. Fitzgerald, MA argues that the importance of a liberal arts education at college, to a student and employers is that a student was forced to spend 4 years in an area where one was compelled to consider new concepts, meet new persons, ask new questions and above all learn to socialize, to imagine, to think. Thus apart from the degree one gets, college experience completely changes an individual from what they were before college. However, not everybody has been in support of college and skeptics think that college education is very expensive and guarantees nothing after students graduate. They claim the fact that the cost of college education has increased by nearly 5 times the inflation rate since 1983,not forgetting that salaries for graduates have been flat for much of the past 10 years. Student loans have risen so much that it hinders many young graduates from having children, starting businesses or buying houses. Students who were loaned for a bachelor’s degree awarded in 2012 owe on average $29,400.A non-profit by the name of The Project on Student Debt, states that 15% of borrowers fail to pay within 3 years of starting repayment. The rate is 22% for at for-profit colleges. Author of “The Higher Education Bubble”, Glenn Reynolds who is a law professor writes of college graduates “who may end up living in their parents’ basements till they are old enough to collect Social Security.” Even though there are instances of individuals who dropped out of college and accomplished great financial breakthrough and success, for majority of Americans, the highway to a brighter future and more wages involves a 4 year college education. In America, college is basically a rite of passage. The worth of a college degree remains quite high, making it possible for the average college graduate to recover the expense of college education in just less than 20 years. After paying off the investment, it goes on to yield dividends throughout the remaining bit of worker’s life. This leaves the college graduates with considerably higher lifetime income than their counterparts with no college degree. It is these findings that suggest the notion of increasing the efforts to make college education more reachable would not only be money but also time well spent. References Daly C Mary, Bengali Leila. "Is It Still Worth Going to College?" FRBSF Economic Letter (2014): pp 1-5. Don, Lee. "Is college still worth it?Pew research says yes." Los Angeles Times (2014): np. Economist, The. "Higher Education:Is colege worth it?" The Economist (2014): np. Greenstone Michael, Looney Adam. "Regardless of the Cost,College Still Matters." The Hamilton Post (2012): N.p. Hoynes Hilary, Miller Douglas,Schaller Jessamyn. ""Who Suffers During Recessions?"." Journal of Economic Perspectives 26(3) (2012): pp 27-48. Rebecca, Mead. "Learning By Degrees." The New Yorker (2010): np. Susan, Ricker. "Colege Graduates Have Great Hiring Prospects This Year(2014)." CareerBuilder (2014): np. Read More