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The Value of a College Degree

The escalating cost of higher education is causing many to question the value of continuing education beyond high school. Many wonder whether the high cost of tuition, the opportunity cost of choosing college over full-time employment, and the accumulation of thousands of dollars of debt is, in the long run, worth the investment. The risk is especially large for low-income families who have a difficult time making ends meet without the additional burden of college tuition and fees. 

In order to determine whether higher education is worth the investment, it is useful to examine what is known about the value of higher education and the rates of return on investment to both the individual and to society.

THE ECONOMIC VALUE OF HIGHER EDUCATION 
There is considerable support for the notion that the rate of return on investment in higher education is high enough to warrant the financial burden associated with pursuing a college degree. Though the earnings differential between college and high school graduates varies over time, college graduates, on average, earn more than high school graduates. According to the Census Bureau, over an adult's working life, high school graduates earn an average of $1.2 million; associate's degree holders earn about $1.6 million; and bachelor's degree holders earn about $2.1 million (Day and Newburger, 2002). 

These sizeable differences in lifetime earnings put the costs of college study in realistic perspective. Most students today-- about 80 percent of all students--enroll either in public 4-year colleges or in public 2-year colleges. According to the U.S. Department of Education report, Think College Early, a full-time student at a public 4-year college pays an average of $8,655 for in-state tuition, room and board (U.S. Dept. of Education, 2002). A full-time student in a public 2-year college pays an average of $1,359 per year in tuition (U.S. Dept. of Education, 2002). 

These statistics support the contention that, though the cost of higher education is significant, given the earnings disparity that exists between those who earn a bachelor's degree and those who do not, the individual rate of return on investment in higher education is sufficiently high to warrant the cost.

OTHER BENEFITS OF HIGHER EDUCATION 
College graduates also enjoy benefits beyond increased income. A 1998 report published by the Institute for Higher Education Policy reviews the individual benefits that college graduates enjoy, including higher levels of saving, increased personal/professional mobility, improved quality of life for their offspring, better consumer decision making, and more hobbies and leisure activities (Institute for Higher Education Policy, 1998). According to a report published by the Carnegie Foundation, non-monetary individual benefits of higher education include the tendency for postsecondary students to become more open-minded, more cultured, more rational, more consistent and less authoritarian; these benefits are also passed along to succeeding generations (Rowley and Hurtado, 2002). Additionally, college attendance has been shown to "decrease prejudice, enhance knowledge of world affairs and enhance social status" while increasing economic and job security for those who earn bachelor's degrees (Ibid.) 

Research has also consistently shown a positive correlation between completion of higher education and good health, not only for oneself, but also for one's children. In fact, "parental schooling levels (after controlling for differences in earnings) are positively correlated with the health status of their children" and "increased schooling (and higher relative income) are correlated with lower mortality rates for given age brackets" (Cohn and Geske, 1992).

THE SOCIAL VALUE OF HIGHER EDUCA5ION 
A number of studies have shown a high correlation between higher education and cultural and family values, and economic growth. According to Elchanan Cohn and Terry Geske (1992), there is the tendency for more highly educated women to spend more time with their children; these women tend to use this time to better prepare their children for the future. Cohn and Geske (1992) report that "college graduates appear to have a more optimistic view of their past and future personal progress." 

Public benefits of attending college include increased tax revenues, greater workplace productivity, increased consumption, increased workforce flexibility, and decreased reliance on government financial support (Institute for Higher Education Policy, 1998).

COLLEGE ATTENDANCE VERSUS COLLEGE COMPLETION 

In their report, College for All? Is There Too Much Emphasis on Getting a 4-Year College Degree? Boesel and Fredland estimate that around 600,000 students leave 4-year colleges annually without graduating. These noncompleters earn less than college graduates because they get fewer years of education. More surprising, they tend to earn less than or the same amount as 2-year college students who have as much education.

Are distance learning institutions accredited differently than "brick and mortar"? 
The answer is yes and no. Both the regional and national accrediting agencies, that are responsible for all accreditation including programs offered at a distance, hold distance learning institutions to the same high standards as other colleges and universities. At the same time, they have recognized specific standards that are applied to "brick and mortar" institutions need to be adapted for distance learning to ensure that they continue to promote high quality education. For example, one of the fundamental distance learning standards looks at faculty support and whether they have the resources, facilities and equipment needed to engage in effective instruction at a distance. More on the specifics of the new standards can be read in the CHEA Monograph Series 2002, number 1, Accreditation and Assuring Quality in Distance Learning.