Right now, there’s a bit of a debate surrounding college. As college costs rise and student loan debt weighs on more graduates, some are starting to ask this question: “Is college worth it?”

However, like so many things in life, there’s no one answer. It’s not cut and dry. In fact, there are several factors that determine whether a college education is worth the money.

Depending on how you approach your education, you can either see a great return on your investment or lose out over time.

Is It Really Worth It to Go to College?

For the most part, a college grad makes more money than a high school grad. According to the Association of Public & Land-Grant Universities, the typical college grad will earn about $1.2 million more over their lifetime than a high school grad.

Those earnings are nothing to sneeze at. Just going to college could potentially mean almost $1 million more for you than if you didn’t complete a degree program.

On top of the financial gains, many students think college is worth it because it gives them a chance to build memories and learn skills. Attending university gives you the chance to forge lifelong connections — including building networks that can help you further your career.

Plus, learning how to learn can be valuable itself. Even if you don’t end up doing work strictly related to your college degree, the skills and habits you gain during your time at university can be translated to other areas of your life.

Don’t underestimate the intangible benefits of going to college, as well as acknowledging the financial and career possibilities.

However, Douglas Webber warns in his study of the value of college that the benefits aren’t assured. There are some caveats to consider as you answer the question, “Is a college education worth the money?”

Is College Worth the Cost: Pros and Cons

Before committing to a school or course of study, it’s important to figure out if your specific action is going to be worth the cost. Here are some of the factors that go into the final worth of your college degree:

When do you graduate?

First of all, if you don’t finish your degree, there’s a chance your college education won’t be worth the money. Webber found no advantage in having college experience without an accompanying degree.

Additionally, the worth of your education might be reduced if you don’t finish within the allotted time. If it takes you longer to finish a four-year degree, you’re missing out on time in the workforce. That opportunity cost can catch up with you down the road, reducing the value of your education.

How much does it cost?

While Webber’s research found that the typical college grad comes out ahead — to the tune of nearly $1 million — the reality is that the value of your degree, and whether college is worth it, also depends on what you pay.

Among the students who pay $50,000 a year for college, only about 56% of college grads will make at least $500,000 more than a typical high school graduate.

That’s still better than having only a high school degree, but paying a too steep of a price for school erodes the value of your degree.

What major did you choose?

Another consideration is the major you choose. When you choose a STEM field or graduate with a business degree, there’s a higher chance your degree will pay off in the long run.

If you get an arts or humanities degree from a private school, you’re looking at 50/50 odds of a positive return on your education, assuming an average cost of attendance.

So even if you pay more for your degree in a STEM field, you might still come out ahead in the long run. However, if you end up with high education costs as a humanities student, there’s a reasonably high chance that college won’t pay off over time.

When deciding how much to spend on school, education expert Mark Kantrowitz suggests that your total debt upon graduation should be no more than your expected starting salary. So if the average salary for your degree is $35,000 a year, you don’t want more than that in student loans when you finish four years of school.

Although, as a doctor or engineer, you have more leeway with this rule of thumb, since you can expect a higher starting salary.

Bottom Line: Why Is College Worth It?

As you consider your options after high school, pay attention to what you hope to get out of college. Don’t forget to factor in the cost of attending — and what you can get in scholarships.

Free money can significantly reduce your cost to attend school, making the return on your education that much higher. Research colleges more generous with merit aid, apply for scholarships, consider your educational path, and plan ahead.

With the right approach, you can get a great return on your educational investment — possibly even seeing a $1.2 million benefit over your lifetime.

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Use R2C Insights to help find merit aid and schools that fit the criteria most important to your student. You’ll not only save precious time, but your student will avoid the heartache of applying to schools they aren’t likely to get into or can’t afford to attend.  

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