College Price is Rising While the Return on College Degrees is Decreasing
Oh College…. for generations a college degree has been touted as the guaranteed path to success. For example, a study by the Georgetown University Center on Education the Workforce found that adults with a bachelor’s degree earn on average $1.6 million more than their non-degree-holding counterparts.
Recent critics have colored a college degree as useless or even harmful, recommending a path towards the trades instead of taking on debt and 4 years of education at college.
They might have a point when you look at the average debt of recent college graduates. According to a federal reserve report, the median student debt for all borrowers in 2021 was between $20,000 and $24,9999.
Ivy League Tuition now pushing $90,000 a year, per Bloomberg.
The historic institutions, a breeding ground for word class professionals, now ask that their students pay an alarming $360,000 for a four-year education. Should your children even make it through the brutal admissions process, you are up for a considerable payment.
Parents Spending $750,000 to Get Their Children Into Ivies
Part of the process in getting children enrolled in Ivy League schools in the first place has been reported to cost around $750,000. From elite sports, tutors, and college prep schools parents are spending excessive amounts of cash to put their children in the most competitive position.
Average Amount Saved for College Far Too Low
In 2022, Sallie Mae and Ipsos surveyed nearly 2,000 college undergraduates and their parents about how they paid for college. The survey found: 33% of families used college savings plans (such as a 529) to help pay for college. The average college savings plan amount they used to help pay for college was $6,872.
42% of people with college degrees said it didn’t end up being worth it, per WSJ.
When you look at the data we mentioned earlier about over half of college graduates being in debt, it’s not hard to believe that 42% of people don’t think college was worth it for them.