The Economic Benefit of Postsecondary Degrees

By National Center for Higher Education Man and National Center for Higher Education Management Systems

In response to the declining international ranking in the percentage of young adults with a postsecondary credential, President Obama, philanthropic and policy organizations, and states have set bold goals essentially to double the number of postsecondary degrees and certificates produced in the next 8 to 13 years. Behind this commitment to increased attainment is a value proposition for policymakers and the general public that achieving these goals will lead to social and economic benefits for individuals, states, and the nation.The movement to increase the percentage of U.S. citizens with a high quality postsecondary degree or credential has proceeded alongside a prolonged economic downturn in which state appropriations have fallen below enrollment growth and inflation. Nationally, state and local support per student is down 12.5 percent in constant dollars from FY 2006 to FY 2011. Meanwhile, despite substantial annual tuition increases in most states, between FY 2006 and FY 2011, student full time enrollment increased an average of 16.9 percent nationally. And bachelor's degree production during the period of this study, FY 2005 to FY 2010, grew by 12.7 percent.Increases in both the demand for and the cost of higher education have resulted in a growing number of students relying on student loans to finance postsecondary education. In academic year 2010-11, the percentage of undergraduates who took out federal Stafford loans reached 34 percent compared to 28 percent ten years earlier. This trend, along with higher unemployment rates for recent college graduates4, has led some to question the value of a college degree. The media have reported stories of Americans struggling to find jobs and to pay off their student debt after graduation. Other stories cite a few high profile examples of entrepreneurs who are not college graduates; one entrepreneur has even offered "fellowships" for students to drop out of college and pursue start-up ideas.Despite such skepticism, the evidence clearly demonstrates the value of a college education. According to our analysis of U.S. Census data, those who obtain a bachelor's degree have a median income of $50,360 compared to a median of $29,423 for people with only a high school diploma. An associate's degree leads to a median income of $38,607, more than $9,000 higher than a high school diploma. Those with a graduate degree have a median income of $68,064, 35.2 percent more than those with a bachelor's degree.Additionally, The College Advantage: Weathering the Economic Storm, from the Georgetown University's Center on Education and the Workforce, shows that workers without a college degree have been significantly worse off in the recent economic downturn than those who have attended college. Four out of every five jobs lost in the recession were held by workers with no postsecondary education experience. Although the unemployment rate for recent college graduates is higher than for older workers with comparable education levels, their unemployment rate of 6.8 percent is still more than 17 points lower than for new high school graduates, which is at 24 percent.

• Format: Paperback
• Language: English
• ISBN: 1503333620
• ISBN13: 9781503333628
• Release Date: November 2014
• Publisher: Createspace Independent Publishing Platform
• Length: 42 Pages
• Weight: 0.27 lbs.
• Dimensions: 0.1" x 8.5" x 11.0"