Is 2086 the Year When a College Degree Will No Longer be Worth the Money?
Let’s face it, a college degree today is expensive. Students recognize the significance of the expense and today we see more students working part-time as full-time students to make ends meet. Employers also recognize the significance of a college degree. We’ve already reported findings that even liberal arts majors are better off because they have a degree that focuses on teaching students well-rounded behaviors and how to think critically. Liberal arts majors can make the same amount of money, if not more, than their counterparts earning professional degrees in business, medicine, science or journalism. For more on this, see our recent post, Your College Major Doesn’t Matter.
We have also seen that even though a college degree is expensive, students are finding that there is a large gap between the salaries of those with a degree and those without one. Simply, on average, a college degree will earn you a higher salary over your lifetime than an associate’s degree or just a high school diploma.
But, a new study by Hamilton Place Strategies has found the year that a college degree will no longer be worth your money. For now, we can make enough money with a college degree over time to make that degree worth it. But, in 2086, experts are predicting that this will no longer be the case. These findings were based on inflation, current education costs, and current salaries. A little scary right?
The good news is that a college degree is still worth your money. According to the article published by Hamilton Place Strategies, “the considerable time between now and when a college degree is no longer profitable speaks to how valuable higher education is in today’s economy.” Translated, this means that in 2014, and until 2086, a college degree will still be recognized and will still be the best investment possible for your career.
The bad news is that the cost of a college degree will not soon be decreasing or even moderating. There is currently a high demand for a college education because of the value of a degree, which means that costs will continue to rise. It is this demand and the career returns from a college education that are driving the costs of tuition higher.
How do we decrease the cost of a college education? Well there’s not an answer to that for now, but one option is to consider alternatives to the traditional four year degree such as online classes or for-profit education.
For the full results of the study, you’ll find the article from Hamilton Place Strategies.
Learn more about the author, Ashley Stott, on our Meet the Team Page.