Although the initial investment is steep, a college degree from a four-year public university will start to pay off financially by the age of 33, according to a recent study by the College Board.
 
In the study, authors took the average incomes over time for people who got a job right after high school compared to those who entered the work force four years later with a bachelor’s degree. The study also factored in average tuition and fee payments funded fully by student loans.
 
According to the study, after 11 years of working after college, those with bachelor’s degrees will start making more money than high school graduates and people with associate degrees.
 
Kaj Gittings, assistant economics professor, said the decision to attend college involves weighing the costs with future benefits.
 
“It’s a cost-benefit analysis,” Gittings said. “Not only do you have to pay for college, but you also have to forgo earnings while in school.”
But Gittings said college is like an investment and the end results can make up for the initial costs.
 
“The whole point of college is to change your lifetime earnings potential,” he said. “Presumably, earnings will grow at a faster rate.”
 
According to the study, the difference between the unemployment rates for high school graduates and bachelor’s degree recipients increased from 2.3 percent in 2006 to 5.1 percent in 2009, with degree recipients having the lower unemployment rate of 4.6 percent and high school graduates at 9.7 percent.
 
Gittings said the demand for lower-educated workers is more easily substituted over time, especially in light of the current economy.
 
Another benefit to a college degree is an improved quality of life, Gittings said.
 
“You can get a job doing something you enjoy,” he said.
 
In determining when a bachelor’s degree will pay off, the study factored in paying back student loans to cover the entire cost of education at a four-year college.
 
The University currently has 19,910 students on some type of federal, state, athletic or institutional aid, and the University distributed $51,949,579 in student Stafford and Perkins loans last year, The Daily Reveille reported Sept. 7.
 
Emily Burris, coordinator of the Student Financial Management Center, said it’s important for students to be aware of their finances.
“I have had students coming toward graduation who weren’t sure what their repayment was going to look like,” Burris said.
 
Burris said students should use caution when taking out student loans and should consider the monthly and long-term interest.
 
“It’s about only taking out exactly what you need and not more than that,” she said.
 
 
 
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Contact Sarah Eddington at [email protected]