Is Our Students Earning? A new way of measuring how different colleges pay off in the long run.

Erin Dillon:

The college class of 2011 just graduated into one of the worst job markets in recent history. Twenty-four percent of 2011 grads had a job offer in hand by graduation, compared with 51 percent of students graduating in the prerecession year of 2007. As these recent college grads move back in with their parents, and as student loan bills come due, many will wonder--was college worth the money?

The short answer is: probably. While studies of past recessions suggest that the unlucky Great Recession grads will do less well economically than those graduating during better times, they are still likely to earn more and have better job prospects than their peers who lack college credentials. The June 2011 unemployment rate for those with only a high school diploma, for example, was 10 percent, as opposed to 4.4 percent for those with a college degree. And earnings for college graduates were 66 percent higher in 2010 than for high school graduates. Moreover, the benefits of a college degree are not just financial: college graduates tend to lead healthier lives, have lower divorce rates, and have children who are better prepared for school. On average, a college degree is a worthwhile, if increasingly expensive, investment.

Posted by Jim Zellmer at September 5, 2011 3:34 AM
Subscribe to this site via RSS/Atom: Newsletter signup | Send us your ideas