SouthernWorldwide.com – As the cost of higher education continues to rise and public doubt about its value grows, many Americans are questioning the long-term financial viability of obtaining a bachelor’s degree.
A recent study analyzing students from Texas public colleges indicates that, in general, graduates earn significantly more than individuals without a degree, even those who majored in liberal arts.
This analysis, conducted by the Postsecondary Commission, a non-profit organization focused on education, followed approximately 29,000 students who began their bachelor’s degree programs in the 2008-2009 academic year. The researchers then tracked the graduates’ “cumulative net value-added earnings” over the subsequent 15 years.
This metric was calculated by comparing the total earnings of graduates over a specific timeframe against those of individuals who did not pursue a bachelor’s degree. It also factored in educational expenses, such as tuition, housing, and the income forgone while attending college.
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On average, college graduates earned nearly $87,000 more than high school graduates over this 15-year period, even after deducting the costs associated with their education.
Majors in engineering and architecture yielded the highest financial returns. However, even liberal arts graduates, whose degrees are sometimes associated with lower earning potential, demonstrated an advantage of about $35,000 compared to their peers who did not complete a bachelor’s degree, according to the study.
“Individuals pursuing a bachelor’s degree, irrespective of their chosen field, are likely making a sound investment,” Michael Itzkowitz, president of the higher education consulting firm HEA Group, commented to CBS News regarding the study’s findings. “This represents a financial benefit that is expected to increase further over time as these individuals advance in their careers.”
It is important to note that the Postsecondary Commission’s study is specifically focused on students in Texas, and outcomes may differ in other states. Regional economic variations can influence the specific employment training required, as Itzkowitz pointed out. Nevertheless, the analysis suggests that even fields of study with lower average salaries tend to offer economic advantages for college graduates.
“This study is remarkably thorough because it incorporates opportunity costs, which means it accounts for the financial implications of spending time in college compared to those who enter the workforce immediately after high school,” he added.
Additional Degrees Also Boost Earnings
Earning a bachelor’s degree is not the sole pathway to increased earnings. The analysis also evaluated the long-term earnings enhancement for students who obtained associate’s degrees and various certificates.
The majority of associate’s degrees resulted in positive financial returns. The construction trades offered the most substantial payoff, generating approximately $72,000 over 15 years after completing the credential.
In contrast, certain two-year programs, such as culinary services and logistics, led to net financial losses of around $13,000 and $15,000, respectively.
Certificates also presented a mixed bag of results. Certificates in the construction trades provided the highest return, estimated at about $48,000 over the 15-year period. However, seven certificate fields, including social sciences and information technology, experienced net losses during the same timeframe.
