Is college worth it? Here’s how to do the math

Before buying any item, it’s standard to ask yourself whether it’s worth it by comparing prices and reading reviews. College shouldn’t be any different. Many high school graduates often find it difficult to decide whether they should continue with their education or join the workforce.

This is because college can be an expensive investment, and most middle-class families can’t keep up with the tuition and living costs in universities. Additionally, the rising student loan debt in the US is a cause of alarm for students that want to take out federal student loans to pay for college.

However, attending college is worth it, and here’s why.

1. More pay

Statistics show that earnings generally increase with a higher level of education. For instance, in 2017, the weekly earnings for an individual with a high school diploma were $712 compared to $1170 for those with a bachelor’s degree. Moreover, people with a master’s degree had weekly earnings of $1401.

2. Better benefits

According to a 2016 College Board report, college graduates are more likely to have employment benefits such as retirement plans and health insurance. 

3. Steadier employment

College graduates have better job opportunities due to their vast knowledge and skills acquired while in school. Therefore, it’s easy to build a successful career as a college degree holder compared to a high school graduate. The unemployment rate is also higher for high school dropouts.

4. College debt

If you plan to take out a student loan to finance your college education, you need to be able to afford the debt you take on. For instance, don’t apply for hefty student loans that will take 15 years to pay once you graduate.

Manageable debt for any college student shouldn’t exceed 10% of your projected after-tax monthly income after school. This estimate is built for students that don’t expect their income to increase dramatically once they enter the workforce. 

Alternatively, try looking for other ways to pay for college so that you don’t have to borrow as much. For example, apply for scholarships, grants, or get a part-time job. Contact StudentLoanify today for help with your student loan applications.