In general, the economic advantages of a college education still prevails over the high cost. However, the college does not bear fruit for everyone, according to a new study Federal Bank of the New York Reserve.
Many factors, including how much financial assistance is offered and how much students must pay from their pocket, as well as the choice of the potential for major future benefits and how long it takes to obtain his diploma, determine the real return on investment, according to the researchers of the Fed.
Overall, “the majors who offer technical training – that is to say quantitative and analytical skills – gain the highest yield, including engineering, mathematics and computers”, wrote the Researchers of the Fed in the blog April 16.
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“While expensive schools and life on campus may seem to make college a risky bet, our estimates suggest that even a relatively high university education tends to give a healthy return to the typical graduate,” said Fed researchers.
“Taking five or six years to finish a diploma is also generally paid. However, until a quarter of university graduates seem to be in relatively unpaid jobs, and for them, a university diploma may not be worth it, at least in terms of economic reimbursement”, according to Fed researchers.
“The college continues to become more expensive”
Meanwhile, studies systematically demonstrate that college costs continue to increase faster than growth in financial aid. This means that families and students have a larger share of the financial burden on higher education.
College’s tuition fees have indeed increased significantly, making an average of 5.6% annual increase since 1983, exceeding inflation and other household expenditure. And families now support 48% of college spending with their income and investments, compared to 38% ten years ago, according to a report JP Morgan Asset Management.
“The college continues to become more expensive and even if we have made the help more accessible by making FAFSA (free demand for students' assistance) shorter and more digestible, it is not enough,” said Tricia Scarlata, responsible for education savings at JP Morgan Asset Management. (The new Free request for assistance to federal students had to improve access by widening the eligibility for help.)
In fact, these days, more students undress. According to a recent report in the third consecutive year in 2023-24 National Center for Students' Compensation Students.
“Today's students wish short -term and lower -cost references that lead to faster employment possibilities,” said Doug Shapiro, executive director of the National Student Clearinghouse Research Center in a press release.
“These are certificate programs, not partners or baccalaureate diplomas, which attract students to colleges today,” added Shapiro.
