Is college worth it? Pros and cons

​With rising tuition rates and mounting student debt, many Americans are wondering whether a college education is still worth the cost. Only one in four adults in the U.S. say a four-year degree is extremely or very important for getting a well-paying job, according to a survey from the Pew Research Center. If student loans are needed to cover the cost, just 22% of adults say a bachelor’s degree is worth it. 

Despite changing opinions, a bachelor’s degree remains a pathway to higher earnings and net worth over time. That said, outcomes can vary depending on your major, school, and career path. Here’s how to determine whether going to college makes financial sense for you. 

Weighing the financial value of college

Despite growing skepticism about the value of college, a four-year degree still results in higher earnings and wealth premiums than a high school degree alone. Families headed by college graduates had a median income of $91,947 and total net worth of $290,904, according to research by the Federal Reserve Bank of St. Louis. By contrast, families headed by nongraduates had median earnings of $40,505 and a net worth of $53,502. 

However, the survey noted that the financial benefits of a four-year degree seem to be diminishing in recent years, likely due to rising tuition costs and high student debt levels. Plus, the economic benefits are not shared equally when broken down by other factors, such as race, gender, and socioeconomic status. 

How much does college cost today? 

The cost of college can vary greatly, depending on whether you attend a public or private four-year school. Plus, your net price could be significantly lower than the sticker price due to financial aid like grants and scholarships. 

College tuition and fees 2023-24

Here’s the average annual price of tuition and fees for full-time undergraduates students in the 2023-24 school year, according to College Board: 

• Public 4-year (in-state): $11,260
• Public 4-year (out-of-state): $29,150
• Private nonprofit 4-year: $41,540

Over four years, you could be looking at a sticker price of $45,040 at a public four-year school (in-state), $116,600 at a public four-year school (out-of-state), and $166,160 at a private college. 

Your school’s total cost of attendance

Your total cost of attendance will be higher than tuition and fees alone, as it also accounts for room, board, books, supplies, transportation, and living expenses. Here are College Board’s estimates for the average annual cost of attendance in the 2023-24 year: 

• Public 4-year (in-state): $28,840
• Public 4-year (out-of-state): $46,730
• Private nonprofit 4-year: $60,420

The cost of student loans 

Total student debt in the U.S. now stands at nearly $1.76 trillion. About half of college students (51%) take out student loans to pay for college. The average balance upon graduation is $29,400, and repayment terms may span anywhere from five to 25 years. 

The National Center for Education Statistics (NCES) found that the average federal student loan borrower in the Class of 2016 still owed 78% of their original loan amount four years after graduation. 

To lessen the financial burden of college, it’s a good idea to only borrow what’s necessary. Take advantage of aid that doesn’t need to be repaid first, such as grants, work-study opportunities, and scholarships.

When a college degree pays off

While going to college can be an expensive endeavor, it can also pay off in a number of ways. Here’s a look at the potential return on investment (ROI) for a college degree. 

Higher earnings

Having a college degree on your resume can lead to higher earnings. The median weekly wage for bachelor’s degree holders is $1,680 in 2024, according to the U.S. Bureau of Labor Statistics (BLS). For those with only a high school diploma, the average wage is lower at $901. 

However, the return on investment of your degree can vary depending on what you study. Computer science and engineering degrees, for instance, tend to have higher financial ROIs than arts, humanities, and education degrees. 

Lower unemployment rates

Employers often favor candidates with a college degree, since they see it as an indicator of skills and experience. In a survey by the National Association of Colleges and Employers, three in four employers said they looked favorably upon a college degree. The unemployment rate for bachelor’s degree graduates was about half that for high school graduates in 2022 (2.2% compared to 4%), according to the BLS. 

Recession resiliency

A college degree may also make you more resilient during a recession. The Public Policy Institute of California found that workers with a lower level of education face higher unemployment during economic downturns. During the COVID-19 pandemic, the unemployment rate for bachelor’s degree workers was 10%, lower than the 18% among workers who didn’t go to college. 

Trends in college enrollment 

College enrollment has been declining in recent years as income inequality has increased. Between fall 2019 and fall 2021, total undergraduate enrollment decreased by 6.6%, from 16.4 million to 15.4 million, according to College Board. The NCES found that between 2010 and 2021, undergraduate enrollment fell 15%, from 18.1 million to 15.4 million students.

Declining college enrollment may reflect broader economic challenges and shifting perspectives on the value of a traditional college education. 

What to consider before enrolling

Going to college can have a number of both tangible and intangible benefits, from accessing high-paying jobs to building a professional network to making lifelong friends. However, the cost can top $100,000 per year at some universities today, a sum that may make you think twice about attending. Here’s what to consider before investing in a college education: 

Your career goals

What career would you like to pursue in the future? Does it require a four-year or other advanced degree? Even if a four-year degree isn’t required, would earning one help propel you into the job you want? Use your career goals as a compass to evaluate the practicality of a college degree in achieving your goals. 

Quality of the program

Do some research on your school and program, particularly its reputation for success and post-graduation outcomes for students. A high employment rate among graduates is a good sign, while a high attrition (or drop-out) rate could be a red flag. Choosing a program with strong outcomes can help maximize your investment. 

Your school’s cost of attendance

Find out the cost of tuition, fees, supplies, and living expenses. Many schools offer a cost estimate on their website, but it's worth filling in your own figures based on your lifestyle. Consider reaching out to your school’s financial aid office to explore all your possible funding options. 

How you’ll pay for college

Once you have a sense of costs, come up with a plan for covering them. Will you be able to cover costs with grants, scholarships, and work-study? Or will you take out student loans to pay for school, and if so, how much will you have to borrow? Make sure your financial plan takes into account your long-term financial goals. 

Alternative education options

There are a growing number of alternative programs available today, such as coding bootcamps, trade schools, and professional certification programs. Depending on your interests and goals, one of these options could help you gain the skills you need with a potentially lower price tag. 

Personal readiness

Finally, consider whether you feel personally prepared for four years of schooling. According to a Jed Foundation survey, 60% of students said they wish they’d felt more emotionally prepared for the demands of college. You might decide that taking a gap year to work or travel would be the better option than going straight into college. 

Alternatives to 4-year colleges

Although you might feel pressured to go straight from high school to college, there are alternative paths you could take. Here are a few nontraditional alternatives to enrolling in a four-year college right away: 

• Start with community college: You could earn your associate degree while paying less in tuition than you would for a 4-year school. If you decide to continue on with your education, you could transfer to a 4-year college and finish up your last 2 years there. 
• Apply for trade or technical school: Trade and technical schools are another way to gain specialized skills. You can prepare for a specific career while spending less money and time in school. 
• Consider taking a gap year: A gap year between high school and college could give you time to travel, work, or do community service. You might use this time to earn money for college or clarify your future goals. 
• Gain experience volunteering: Volunteering is another way to gain experience and contribute to your community. You could volunteer with a local group or join a major organization like the Peace Corps. 
• Consider military service for career and educational benefits: Joining the military could make you eligible for various benefits, including tuition assistance, scholarships, and student loan forgiveness programs.