Do Americans Still Value A College Degree?

For those who choose to pursue higher education, years are likely put into earning a degree. Students can create lifelong friends, academic resources are widely available, and there’s a class dedicated to almost any niche topic students wish to explore

But how does the public perceive the value of college? In a new study, CollegeFinance.com asked more than 1,000 college and high school graduates to see if Americans value a college education.

Importance of an Education

According to the study, 68% of those surveyed believed a college degree is a good investment, only 15% disagreed, while 17% remained unsure. In addition to being a good investment, more than 3 in 4 respondents felt a college degree gives people more career opportunities. Nearly 7 in 10 believed those with a degree would receive better work benefits, and 65% said it is a good investment for the future.

Those who graduated from college were 22 percentage points more likely to be satisfied with their educational decisions than respondents who solely graduated from high school. Almost half (44%) of the college graduates in the study admitted it is worth borrowing money in the form of student loans but only if job prospects exist.

Nearly 9 in 10 (89%) participants agreed that college is too expensive, but nearly 3 in 4 said they would do it again. Of those with a high school diploma, only 39% felt a college degree is necessary, but 63% of those surveyed with a graduate degree believed graduating college is imperative for a good career.

College ROI

How long did it take college and high school graduates to secure their first job after walking across the stage? The study revealed more high school graduates (48%) earned their jobs less than a month after finishing school, compared to those who finished college (33%). But after three to five months, college graduates were almost twice as likely to obtain a new position.

People found their new job in a few different ways. Those with a college degree were 11 percentage points more likely than those with a high school diploma to find a job using an online platform. Nearly 1 in 3 college graduates earned their position by networking, while just 1 in 4 high school graduates landed their new job this way.

The study broke down the difference in income between the two types of graduates, and those with a college degree earned an average of $12,800 more than high school graduates. Half of the college graduates surveyed agreed that their college degree helped them land a higher-ranking position compared to previous jobs held.

Student Loan Knowledge

While those who had to take out student loans (73%) were more likely to understand how they work, almost half (45%) who did not borrow money said they understood the complexities of that specific type of loan.

Overall, 80% of those surveyed knew what interest was, 73% understood the term fixed interest rate, and 69% knew what the word principal meant in regard to student loans. Moreover, 3 in 4 college graduates admitted student loans were the primary reason they were able to attend college. More than 1 in 3 were happy they borrowed the money, and 34% had formulated a plan to pay off their student loan debt even before receiving the funds.

Payoff Goals

How long are people paying their loans? More than 1 in 3 respondents in their 40s are still paying on their school loans. More than 6 in 10 college graduates in their 30s are still paying, and 79% of people in their 20s still owe money toward their schooling.

The younger the borrower was, the higher their average monthly payment seemed to be and the more money they owed. People in their 20s had an average loan balance of $28,700 with a mean payment of $318 monthly, while people in their 40s owed $25,100 and had an average bill of $223.

Almost 8 in 10 college graduates with a bachelor’s degree said they made the minimum monthly payments, but 30% said they pay more than the minimum each month. Nearly 1 in 5 college graduates reported undertaking freelance work to pay off their student loans.

While sometimes it can be challenging to see the benefits of a college degree when so much money may have to be borrowed just to attend, with the right planning, anyone can pay back their loans. The study noted the National Center for Education Statistics projects an increase in college attendance over the next nine years. This statistic likely indicates one thing for sure: Americans continue to place value on a college education.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes