Is College a Good Investment?

Many of this year’s graduating high school seniors already have their eyes set on a specific university, but others wonder if pursuing a postsecondary degree is really worth the time and cost. The public continues to debate whether college is a good investment, but in a review of the latest research, Future of Children authors Philip Oreopoulos and Uros Petronijevic find truth somewhere in the middle. They suggest that college can be a good investment if students prepare well and plan their studies and occupational pursuits carefully.

About 19 percent of 2011 high school graduates who took the ACT and were considered academically ready never enrolled in college or didn’t return to college after the first year. Some of these students may have had better alternatives, but many may have been unprepared in nonacademic ways, such as lacking information about college expenses and financial aid. Andrea Venezia and Laura Jaeger write that many students may not know enough about themselves or their future goals to know which college would be best. In addition, students from low-income and disadvantaged backgrounds may feel obliged to attend a less-selective program that is closer to home, even though they qualify academically for more selective institutions. Evidence suggests that such students are less likely to graduate.

In helping students prepare for postsecondary education, educators and policymakers should move beyond an academic focus. Precollege programs across the country have begun to emphasize guiding students through the decision making process and other nonacademic preparation. College is a better investment when students are well informed about the expenses and financial aid options associated with specific programs at specific schools. For more on this topic, check out the Future of Children issue on Postsecondary Education in the United States.

1 thought on “Is College a Good Investment?

  1. Flex

    I really do think the emphasis should be taken away from whether education “is worth it.” In so many ways, it really is commodifying a process which was intended to do the complete opposite.

    To me, education is a sacred place to develop ways of thinking that can address issues that will influence the world 10, 20, and even 30 years from now. The issue should not be “whether it is worth it” but rather, how do we incorporate this developmental process in a way which is not crippling (in the economic sense).

    In other words, focusing on a “return” in the economic sense (although necessary because of student debts), is really not what I think higher education was designed to look like.

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