There’s no one-size-fits-all way to plan for your academic or professional future. While some people feel naturally drawn to certain career fields or college programs, many require significant reflection—including a deep dive into personal goals, interests, challenges, and much more. Chances are, however, you will eventually consider your earning potential and how a college education might lead to higher wages.
Though there are no guarantees, but plenty of research confirms that, from a purely financial standpoint, college remains highly beneficial. College graduates earn more and enjoy access to a broader range of job opportunities. These benefits continue to increase with additional degrees, making graduate-level education especially compelling.
Still, there is much to consider, including, of course, the upfront investment. If you’re worried about covering the cost of tuition or committing several years of your life to intense study, you may need extra reassurance that all this effort will pay off. Eventually, you are bound to wonder, “Is college worth it?”
To clarify the value of a college degree, we will discuss: How can college benefit you financially, and how can college benefit you personally? Both considerations are key and go a long way toward determining the long-term college return on investment. Read on to discover the many benefits of going to college.
Is College Worth It?
From higher earnings to improved civic engagement and even better mental health, college provides numerous advantages, which are backed by a wealth of evidence. Studies consistently show a strong link between educational attainment and both longevity and quality of life. This suggests that, in most situations, the answer to the question, “Is college worth it?” is a definitive yes, regardless of eventual earnings.
While the advantages of a college degree are considerable, this discussion remains quite nuanced; college can be a considerable investment, after all, requiring not only tuition payments but also a major time commitment. As such, substantial gains must be realized to convince graduates that they have made the right choice—and to convince potential students to enroll.
Earnings Over a Lifetime
Multiple studies confirm the long-term benefits of a college degree, but few are as eye-opening as the insights from the Georgetown University Center on Education and the Workforce (CEW). According to a recent version of the CEW report The College Payoff, those who earn their bachelor’s degree can expect to also earn a median of $2.8 million over the course of their career. Meanwhile, those who complete master’s programs reach median lifetime earnings of $3.2 million. With a high school diploma, median lifetime earnings reach $1.6 million.
The Impact of Inflation and Economic Trends
While the general value of a college degree has remained notable through the years, the types of degrees that prove most valuable may change according to economic and market trends. For example, certain tech-oriented degrees have increased substantially in value due to heightened demand among employers. Other programs, while still important from a societal perspective, may prove less financially valuable than in the past because wages have not kept up with inflation.
Inflation can also impact the cost of getting a degree, which has increased considerably through the years. However, this varies greatly between colleges, and many students are still able to realize the long-term financial benefits of a degree while leveraging financial aid or affordable programs to keep the initial investment manageable.
How Can College Benefit You Personally?
Although there is a clear economic advantage to attending college—typically taking the form of higher wages—personal benefits also matter. Research confirms that people with a college degree tend to enjoy better health and a higher quality of life. While these may stem from college-related earnings, benefits such as improved health literacy or communication skills must be considered as well. Non-financial advantages may include:
Skill Development
College programs provide a structured approach to skill development, going above and beyond what most people are able to accomplish through self-study. These programs offer valuable guidance and accountability to keep students on track, along with exposure to accomplished professionals from numerous fields. As a result, students can develop not only technical, clinical, or analytical skills that help them secure top jobs but also many skills that can be beneficial in other capacities.
Empathy, for example, is frequently cited as professionally advantageous, but it also helps people relate to loved ones and become more civically engaged. Creativity can aid in self-expression and provide a sense of fulfillment. Time management and organization can reduce stress, while cultural awareness can broaden horizons and even make travel more fulfilling. These skills are all heavily promoted within comprehensive college programs.
Personal Growth
It’s important not to discount the intrinsic value of learning. Regardless of the specific skills gained along the way, the act of learning fosters personal growth and increased confidence. It is truly satisfying to discover something new—an excitement for learning that is achievable when enrolled in engaging and immersive courses.
Personal growth stems from the connections developed while pursuing a degree too, which, while professionally advantageous, are also personally meaningful. College can lead to friendships and mentorships that last a lifetime.
Networking Opportunities
Credentials are crucial, but they will not go nearly as far if graduates fail to back them up with personal connections and a robust network. Professionals from all backgrounds continually point to networking as a part of their success, mentioning that this exposes them to new job opportunities and can also contribute to skill development. A survey from the women’s professional network Chief, for example, reveals that 80% of women working at the management level rely on networking for career advancement.
Though networking takes many forms, college remains one of the most valuable opportunities for connecting with other professionals (or future professionals). Every class provides a wealth of opportunities to connect with like-minded individuals, with strong relationships built during class discussions and group projects. Additionally, extracurricular activities deepen these relationships and bring extra joy to the networking process. Experiential opportunities (such as clinicals or internships) up the ante, providing exposure to higher-level professionals.
Comparing an Undergraduate Degree vs. Graduate Degree
Many aspiring college students intuitively understand that they are committed to higher education but may be uncertain how much time they should dedicate to their education — specifically, whether their academic pursuits should end after they earn undergraduate or graduate-level degrees.
- Earnings potential – We have touched on the lifetime earnings for undergraduate and graduate degrees, but immediate differences in wages also matter. Pew Research offers insights into immediate earnings increases, suggesting that young men with a college degree achieve median annual earnings of $77,000, while college-educated young women can expect median annual wages of $65,000. Meanwhile, earnings without a high school diploma reached a median of $45,000 for young men and $36,000 for young women.
- Time and financial investment – One of the greatest barriers to a graduate education is the time commitment, which goes above and beyond the four (or more) years required to earn an undergraduate degree. While some graduate degree programs can be completed in under two years, other graduate pursuits (such as the elite PhD) may require up to seven additional years.
- Career fields benefiting from graduate degrees – Graduate degrees can be helpful across many fields but are not always outright necessary to secure desired positions. These are more important in highly technical roles or leadership positions, where a master’s may be deemed the minimum barrier to entry. Similarly, some certifications (necessary for securing the best jobs) may be impossible to secure with a relevant master’s or doctorate degree. This is essential for some higher-level clinical roles as well. Examples abound: Clinical psychology, pharmacy, and law require graduate degrees, which are also highly advisable in accounting, data science, and business management.
College Degree ROI Calculator
Still looking to pinpoint the exact bachelor’s or master’s degree ROI? Because this is industry-specific, stats from NCES may not be entirely relevant to your situation. This is where an ROI calculator can prove useful. Enter financial details like the cost of your preferred program and expected wages; you’ll uncover a metric revealing whether potential increases in earnings justify the cost of tuition.
If desired, you can calculate the ROI of a degree on your own. The formula is simple: ROI = Net income ÷ Cost of investment x 100
A return over 100% will indicate a net gain—but higher is better. An ROI of 150%, for instance, suggests you will have earned 50% more with a degree than without.
Bachelor’s Degree ROI
Even without a calculator tailored to your degree or career field, you can rest assured knowing that the ROI of a bachelor’s degree is impressive. As mentioned, this degree yields a median lifetime earnings of $2.8 million. Shortly after earning a degree, the median annual earnings exceed those associated with a high school diploma by more than $15,000 per year. Based on these stats, it could be possible to recoup the cost of a degree within a few years.
Beyond these numbers, however, it’s crucial to consider that many employers simply will not hire applicants who lack college credentials. Additional NCES insights suggest an unemployment rate of just 3% among those with their bachelor’s, compared to 7% for those with a high school diploma.
Master’s Degree ROI
A bachelor’s degree can promote strong wage growth, but a master’s goes above and beyond, producing significant increases in both annual wages and lifetime earnings. Graduate education can also provide the chance to move into senior roles, which, in turn, can yield even higher increases in earnings over time.
Offering substantial benefits in specialized fields, a master’s can open the door to passion-driven roles that many professionals find compelling. Furthermore, research highlighted by the Office of Disease Prevention and Health Promotion indicates personal benefits achieved with higher levels of education, including better self-reported health.
4 Factors Influencing the ROI of a College Degree
The research highlighted above can provide valuable insight into the general value of a degree, but differences between programs and career paths must be taken into account. These can have a major influence on long-term earnings, with certain degrees and professions making it possible to earn far beyond the averages referenced above.
Also influential: the amount invested in the educational process. While discussions about ROI tend to focus on long-term gains, these may be more difficult to realize if the initial investment feels out of reach. Factors worth considering include:
1. Choice of Major and Industry
Though exceptions exist, technical fields (including STEM positions) tend to produce higher pay, as do many management roles. While no major can guarantee a high income, career-driven degrees may be strongly recommended or outright required to enter some potentially lucrative fields. Research market trends to get a sense of expected earnings in your potential industry—and determine how necessary certain majors may be for entering the field in question.
2. Institution Selection
College selection can shape both sides of the ROI equation. A well-regarded school (especially one with accreditation and a powerful reputation) can provide a competitive edge following graduation, potentially increasing earnings prospects.
Institution selection also determines the cost of tuition along with the ability to save time (or money) by taking courses online. If possible, opt for a program that provides both advantages: the chance to save on tuition while still attending a well-regarded program that will attract the attention of prospective employers.
3. Scholarships and Financial Aid
Perhaps you anticipate that a particular program will help you score an excellent job and high earnings—but you’re worried about paying for tuition. While it’s worth your while to examine tuition rates, don’t assume that a desirable program is out of reach simply because the initial price tag seems higher. Depending on the program, you may enjoy access to a wealth of scholarship opportunities. Be mindful of other financial aid options, such as grants or college-specific programs designed to reduce the cost of tuition.
4. Economic Conditions
It’s natural to focus on your unique circumstances, yet the bigger picture also warrants consideration. Think carefully about current trends and the anticipated job outlook in your field of choice. If rapid growth is expected, you may find it easier to secure a job after graduation—and that demand could promote strong wage growth.
Strategies to Maximize the Benefits of a College Degree
You have more control over realizing the ROI than you may initially assume. A lot depends on how you use your degree and what you do outside of your coursework to improve your professional prospects. These suggestions could help you make the most of your degree:
Internships and Work Experience
Regardless of degree, employers are more likely to hire job candidates with applicable professional experience. However, this presents a conundrum for hardworking students: It is difficult to score the right job without experience, but it is also challenging to acquire necessary experience without a job. Internships provide the ultimate solution—the chance to get involved in the field (and build a solid professional network) without the need for years of prior experience.
Lifelong Learning and Career Development
While some students may complete their formal education upon graduating with a bachelor’s or a master’s, learning and growing will always remain important. There are numerous ways to continue to learn, with graduates often taking advantage of programs offered through professional associations. Some fields even require continuing education credit, which, although primarily used to satisfy licensing requirements, can provide insight into industry trends and developments.
Career Services and Support
Many colleges offer robust career service opportunities, available not only while enrolled but also accessible to alumni. Career services can assist with everything from drafting resumes to finding internships. College can also provide excellent opportunities to find mentors, who can provide ongoing support as you navigate a complex career field.
Learn More About Baker College
As you plan for the future, look to Baker College for support and encouragement. We are proud to offer many accredited and highly regarded programs that could help you develop in-demand skills and a strong professional network. You’ll emerge with an enhanced resume and the confidence needed to make your mark in your field of choice. Reach out to learn more about our degree programs and our financial aid opportunities.