When is going to college not worth the money?

The debate over the value of a college education continues to rage on, with rising tuition costs and student loan debt causing many to question whether obtaining a degree is truly worth it. A recent analysis by economists at the Federal Reserve Bank of New York sheds light on this issue, revealing that for some college graduates, the return on investment may not be as high as expected.

While the typical college graduate with a bachelor’s degree earns around $80,000 annually, compared to $47,000 for those with only a high school diploma, there are still factors that can diminish the value of a college degree. The study found that about 25% of college graduates see little return on their investment, making only slightly more than the median income of a high school graduate.

One of the key factors that can impact the ROI of a college degree is the cost of attending. Students who pay more out-of-pocket expenses, especially those who choose to live on campus or miss out on financial aid, may see a lower return on their investment. Additionally, the length of time it takes to complete a degree can also affect the overall cost of college. Graduating in five or six years instead of the typical four can significantly increase the total cost of education and lower the ROI.

Another important consideration is the student’s choice of major. STEM majors tend to earn the highest salaries, with fields like engineering, business, and health sciences offering the best returns on investment. On the other hand, majors in fine arts, liberal arts, and education often result in lower earnings.

Ultimately, the decision to pursue a college degree is a significant financial investment that requires careful consideration. While education can be its own reward, it’s important for students to weigh the costs and potential returns before making a decision. By choosing a high-earning major, minimizing out-of-pocket expenses, and completing their degree in a timely manner, students can increase their chances of seeing a positive return on their investment in higher education.