Is college worth it?

Is college worth it?

By Adam Rauscher

Poll

Does it make economic sense to go to college?

• Yes

• No

Does it make economic sense

to go to college?

Money facts about college:

• The average high school graduate earns $35,000 per year. 

• The average salary for a college graduate is about $59,000 per year. 

• Predicted costs of attending a university in Michigan and living at home is almost $20,000 per year.

• A bachelor’s degree usually takes 4 years.

Open Ended

Opportunity cost is what you sacrifice in your choice. It is the value of your next best choice which you give up by making your choice. The opportunity cost of going to college is what you would gained doing your second choice to college.

What is the most common thing people do with their four years instead of going to college?

Most people who don't go to college will begin working right out of high school

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​Work

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So, how much would you earn if you did not go to college?

Average pay for a high school graduate is $35,000 per year. College is typically 4 years. Multiply them. How much would you make in those 4 years?

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The average tuition for a college in Michigan is nearly $20,000 per year. If you attend for 4 years, what is your out of pocket cost?

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So how much money in total do you sacrifice to go to college?

Multiple Choice

$80,000 for tuition + $140,000 in lost wages = $220,000

Which of those numbers represents the opportunity cost?

• $80,000

• $140,000

• $220,000

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The next big question is how long will it take before college starts paying off on the investment. We found that high school graduates make, on average, $35,000 per year. College graduates make, on average, $59,000 per year. So how much money is a college degree make you each year?

Opportunity Cost

cost of the next-best alternative use of money, time, or resources when making a choice.

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You must subtract the opportunity cost from what you gain from your top choice.​

Subject | Subject

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If college ultimately costs $220,000 and a college degree earns you $24,000 per year over a high school degree, about how many years will it take for a college degree to be worth it?

Open Ended

Is that worth it? Would going to college pay off in the long run?

Start by asking how much more do you make over your lifetime with a college degree?

You need to figure out your solution and it requires three steps in math. You need to know the average age people retire at is 64 and that most people graduate from college at 22. It takes 9 years for a college degree to start paying off. College graduates earn $24,000 more per year than high school graduates.

How much do college graduates earn over there lifetime?

On average, a college degree earns you $800,000 more.

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$800,000