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Wednesday, October 24, 2012

College IS Worth the Cost

Last year I made this post about the importance of attending college.  Since then, there continues to be a debate in the media about whether college is worth the cost and reiterating ongoing concerns about the about the difficulty graduates have getting out from under the student loan debt, or that too many college kids study non-practical courses, or that it's all one big party, etc... 

As I said last year, helping our clients save and invest for the education expenses of their children or grandchildren is one of the most important things we do as financial planners.  We firmly believe that a college education is well worth the cost for most people.  This is a link to a recent report from the Brookings Institute that the makes the case better than I can.

The report's conclusion is:

"In this month’s analysis, The Hamilton Project confirms its previous findings that the returns to college attendance are much higher than other investments, such as stocks, bonds, and real estate. We also find that the returns to college have been largely constant over the last 35 years, indicating that the rising tuition costs have been offset by the increased earnings premium for college graduates."

And here are two graphs from the report that make the case: