Is College Worth It? Consider These Factors Before Enrolling (2024)

For decades in the U.S., a four-year degree has been seen as a ticket to a better life, associated with higher wages, better health and access to homeownership, to name a few benefits. But rising costs, mounting student debt, changing job requirements in some industries and new higher education alternatives have altered the equation, leaving many high schoolers and their parents wondering: Is college worth it?

College graduates still earn higher wages and have lower unemployment rates than workers with only a high school diploma. However, industries that don’t require a bachelor’s degree, like manufacturing, construction and hospitality, often pay well and see steady economic demand. Plus, many companies and even government organizations no longer require job candidates to hold college degrees.

Though some researchers claim the economic benefits of a college degree are diminishing, higher education is still undeniably valuable. But is college right for you? That depends on your financial priorities and professional goals. Read on to learn more about the pros and cons of going to college.

How To Determine Whether College Is Worth It

College is a great way to discover yourself: what you’re good at, what drives you, what you want to spend your life doing. Higher learning can provide opportunities to travel, research, build a professional network and connect with peers and mentors. But the cost is immense—often more than $100,000 for a four-year degree, depending on the institution.

If you’re on the fence about college, take the considerations discussed below into account. Also, compare the potential benefits and drawbacks of a four-year degree to alternative higher ed options, such as bootcamps, professional certificate programs and trade schools.

Factors To Consider

When determining whether you should go to college, ask yourself the following questions:

• What are your career goals?
• Does the school you’re eyeing offer a strong program in your area of interest?
• How much would you pay for tuition and other expenses?

Next, assess what student loans and scholarships are available to you, and consider the level of debt you’ll face after graduation. If you’re not sure where to start, check out our rankings of the best private student loans, the best low-interest student loans and the best personal loans for students. We also list some of the best scholarship websites and search engines.

Finally, think about the salary you’ll likely earn in your desired profession and how quickly you’ll be able to repay your loans.

It might be wise to consider this decision as if you were your own life coach or mentor. How would you talk through this problem with someone in your shoes? College admission professionals, high school guidance counselors and mentors can also provide input to help you make an informed decision.

College Income and Wealth Premiums

Two key economic indicators to think about are income and wealth. “Income” here relates to your earnings from a job, while “wealth” refers to your net worth.

For decades, college graduates enjoyed higher earnings and greater wealth than individuals who did not graduate from college, creating so-called “college premiums” on both income and wealth. Though these premiums still exist, they’ve declined for recent graduates, according to economic research published by the Federal Reserve Bank of St. Louis.

The college wealth premium is trending downward faster than the income premium due in part to the high cost of college.

The Cost of College

To examine the cost of college, we can start by looking at the total cost of attendance as collected by the National Center for Education Statistics (NCES).

The total cost of attendance combines the cost of tuition, fees, books, supplies, room, board and other expenses. It does not account for scholarships or federal student aid awards such as grants, work-study programs and loans.

In 2022–23, the average total cost of attending a public, four-year institution was $27,100 for students living on campus. Attending a private, for-profit school averaged $33,600, or $58,600 for a private, nonprofit college. Bear in mind that tuition rates for public institutions were based on in-state enrollees; out-of-state students typically pay higher rates.

Tuition and Fees

Tuition and fees have risen over the past decade at private nonprofit colleges and universities. However, it may surprise you to learn that at the same time, college costs actually decreased at public institutions and private for-profit schools, when adjusted for inflation.

NCES reports that In 2012–13, the average price of tuition and fees at private colleges stood at $37,600 a year (in constant 2022–23 dollars), rising to $40,700 in the 2022–23 school year—an increase of 8%. At public higher education institutions during the same period, tuition and fees fell from $10,400 to $9,800, and tuition and fees at for-profit private schools dropped from $21,100 to $18,200.

Net Cost of Attendance

Net price is the total cost of college—including tuition, supplies, housing and other expenses—minus grant and scholarship aid.

In the 2021–22 academic year, the average net price of attending a four-year college for first-time undergraduates was $15,200 at public institutions, $29,700 at private nonprofit schools and $24,400 at private, for-profit institutions, according to NCES.

So for a four-year bachelor’s degree, the average net cost of attendance for students residing on campus was approximately:

• $60,800 at public schools
• $97,600 at private, for-profit schools
• $118,800 at private, nonprofit schools

In other words, the cost of college can be steep even with financial aid taken into account.

Student Loans

The percentage of first-year undergraduates who take out student loans has decreased since 2010, according to NCES. Thirty-eight percent of first-time, full-time college students were awarded loans in 2020–21, compared with 50% in 2010–11. NCES noted a decrease across all controls for both two-year and four-year higher education institutions.

The average loan amount awarded has also decreased over the past decade. First-time, degree-seeking students received an average of $7,700 in 2020–21, compared to $8,400 in 2010–11, a decrease of 8%. Although borrowing rates have declined, student debt in the United States now totals around $1.75 trillion, according to the Federal Reserve.

In the 2021–22 academic year, 49% of students earning bachelor’s degrees from public, four-year institutions graduated with federal student loan debt, according to research from College Board. The average amount of debt per student was $20,700. Another 9% graduated with private loan debt averaging $34,600 per borrower.

At private institutions, degree seekers tend to borrow more; College Board found that among bachelor’s grads from private schools the average student loan debt was $22,200 for federal loan borrowers. For those who took out private loans and attended private schools, the average loan balance at graduation was $44,600.

To understand how effective students are at paying back their loans, NCES examined the class of 2015-16 four years after graduation, finding that the average federal student borrower still owed 78% of their original loan amount. The average percentage owed was particularly high among Pell Grant recipients: 85% of the original borrowed amount.

The Potential College Payoff

We’ve determined that college is expensive and student debt can be a heavy burden. So what’s the return on an investment in higher education? Let’s take a look at potential payoffs for college grads.

Higher Earnings

College graduates still enjoy higher earnings than the average U.S. worker. The U.S. Bureau of Labor Statistics (BLS) reports that in 2023, bachelor’s degree holders took home a median wage of $1,493 per week, while workers with just a high school diploma earned only $899. That’s a difference of 66%.

But how much you earn depends on several factors, including the industry you work in and your age, gender and location. A 2021 report from the Georgetown University Center on Education and Workforce found that 16% of high school graduates and 28% of associate degree holders earn higher wages than half of bachelor’s degree graduates.

On average, bachelor’s degree holders don’t start to see returns on their college investment until they’ve worked full time for 15 years. It’s the lowest return on investment (ROI) of all postsecondary degrees, according to the Education Data Initiative.

However, ROI for bachelor’s degrees can differ significantly depending on the major. The most cost-effective majors are in the computer and information sciences. Other areas with high returns include business finance, business accounting and electrical engineering. Majors with low ROI include fine art, liberal arts, general studies and education.

Lower Unemployment Rates

In 2022, bachelor’s degree grads faced an unemployment rate of 2.2%, while the rate for all workers was 3%, according to the BLS. By comparison, 4% of workers with only a high school diploma were unemployed.

Despite national conversation questioning the value of a college degree, a 2023 survey by the National Association of Colleges and Employers found that many employers still see higher ed as valuable, with three-quarters of respondents viewing college credentials as high-quality.

Recession Resiliency

Having a four-year college degree may help you stay afloat during the next economic downturn. According to a report by the Public Policy Institute of California, less-educated workers suffered higher unemployment losses during the past few recessions. For example, at the height of the Covid-19 recession, workers with no college education experienced an unemployment rate of 18%, compared to 10% for workers with bachelor’s degrees.

The Pros and Cons of Going to College

Whether going to college is worth it really depends on your situation. Some career aspirations require a four-year degree, while plenty of others don’t. Certain academic interests make more sense to pursue in a formal campus environment. Others lend themselves to self-study.

Your financial situation is an important factor in determining the value of college. You’ll want to ask yourself if higher wages and more career options in the long run are worth years of student loan payments.

Pros

• Higher wages on average
• More career options
• Opportunities to gain further credentials and earn more money
• Alumni networks
• Recession resilience
• Personal growth
• Better health
• Higher likelihood of homeownership and being partnered (married or cohabiting)
• Lower risk of becoming delinquent on debt obligations

Cons

• High cost
• Years of student loan debt
• Not necessary for some jobs
• Many alternatives to a four-year college degree, like apprenticeships and associate degrees, may provide similar benefits
• “Opportunity loss” due to time in college spent not working in profession

If you’re unsure about whether college would pay off for you, check out the below resources to learn about alternative options for higher education and professional credentials:

• Best Coding Bootcamps
• Best Online Trade Schools
• Can You Get a Bachelor’s Degree at a Community College? Here’s What To Know
• How Much Do Coding Bootcamps Cost? What To Know
• How To Get an Apprenticeship: Tips and Resources
• Tech Bootcamps With Job Guarantees: What To Know
• These 8 Universities Offer Business Certificates Online
• What Is a Graduate Certificate? Everything You Need To Know
• What Is a Skilled Trade? Top-Paying Trades To Conside

Public Opinion on the Value of College

A 2023 Gallup poll found that Americans’ confidence in higher education has diminished since the mid-2010s, particularly in regard to four-year institutions. In 2015, the polling organization reports, 57% of Americans expressed “a great deal” or “quite a lot” of confidence in the U.S. higher education system. However, that percentage dropped to 36% by 2023.

Gallup’s analysis points to criticisms that college education has become too expensive and that colleges are perceived as failing to teach useful skills. Additionally, many poll respondents reported a lack of confidence stemming from a belief that U.S. higher education institutions do not align with their personal political views.

Meanwhile, a study from the Pew Research Center, also conducted in 2023, notes that 49% of Americans believe that having a college education is less essential to getting a well-paying job today than it was 20 years ago.

However, confidence in the importance of a college education rises among young adults and college graduates; 44% of Americans between the ages of 18 and 29 believe it’s more critical now than it was 20 years ago to have a college degree in order to get a job that pays well. Among people with bachelor’s degrees or higher, 58% said that their education was “very useful” or “extremely useful” in preparing them for well-paying jobs.

The cost of college and the burden of student loans were also major concerns for respondents of the Pew Center survey. Among all respondents, 47% said that college was worth it, but only if students can avoid taking out loans. Twenty-two percent said that college was worth it even with student loans, and 29% said that college was not worth it at all.

As public opinion shifts regarding the importance of higher education, and Americans begin to question the assumption that going to college is the only viable route to a comfortable life and career, each student must assess their own goals, values and priorities to decide whether college is worth it for them.

Forbes Advisor editor, Ilana Hamilton, also contributed to this article.

Frequently Asked Questions (FAQs) About Whether College Is Worth It