1

Costly Education, is it worth it?

Christopher R Shupert

Ottawa University

LAS 13525
Costly Education 2

Abstract

The average salary for a new graduate is $50,556 (Poppick, 2015), but this number is skewed in

that it varies widely among degrees. Newly graduated engineers make on average $64,891 their

first year and educators make $34,891on average the year after graduating college (Poppick,

2015). That being said, the average price for a four-year degree is $21,728 per year, with private

institutions charging $37,424 per year and public schools charging $16,188 per year (National

Center for Education Statistics, 2015). Being that the average student is taking six years to

graduate that's putting them at $131,000 to $97,000 in debt before receiving their first paycheck.

Is it worth it? Maybe, depending on your degree and graduation plan.

Costly Education 3

Costly Education, is it worth it?

As of today, I am still a college student, I couldnt be happier to receive a new piece of

knowledge daily and even more proud of my accomplishments and graduating this year with a

bachelors degree in business. The average business graduate is making $52,236 upon

graduating and that is music to my ears, especially since Im a 32-year-old student that's been

breaking his back trying to make a decent living wage. The most amazing aspect of this

experience is Im one of the few people that gets to receive a free education. I am a veteran and

use what most people call the G.I. Bill. If I didnt receive these benefits I highly doubt I would

have returned to school in fear of putting myself in debt for the remainder of my life.

The Cost of Education

Research has been done for years on the cost of education, from a traditional four-year

degree to a two-year degree or professional certificates. But between what type of program is

being researched you also have to account to where the education is coming from. Is it at a

public university or a private university, both for profit and non-profit? All these factors can

cause significant price changes.

The average cost of all universities for a four-year degree is a whopping $21,728 per

academic year, compared the average price thirty years ago, at $10,210 per academic year.

These stats include both private and public universities, breaking it down to each sector the

private universities are on average charging $37,424 and public universities on average charge

$16,188 per academic year.

Another major factor in accrued debt is the time spent at school. Traditionally speaking,

universities are called four year degrees because it use to only take four years on average to

complete a degree program but today the average student isnt graduating in four years, it is
Costly Education 4

closer to six years. Many factors can be contributing to this but a large majority believe it's

because of the Pell Grant and students wanting to do bare minimum for maximum benefit. It

only takes twelve credit hours a semester to be eligible to receive full benefits and with simple

math, eight times twelve does not equal 120 or greater, the average credits needed to graduate

with a degree. With students spending close to six years to graduate school with a bachelors

degree, that can but a student in debt of $131,000 to $97,000 depending if theyre going to a

private university or public one.

Salaries of the graduated

With students started in such high debt that degree must be worth it. Yes, it is, for some

and not so much for others, in a clear financial standpoint. Education can be seen as priceless

and I would agree but without a sufficient income you can stay in debt for life and always have

that looming over your head. But you can also be a college graduate with this amazing education

you received but still make less than your neighbor that graduated high school and never thought

twice about going to another day of school.

So, who is making the money straight out of school? As most could guess it is the

science based degrees. Engineers are the highest paid students after graduating with them

making on average $64,891 in salary the year after graduating with Computer Science coming in

second at $61,321 starting average salary. Rounding of the top five degrees is Math and

Sciences degrees, $55,087, Business degrees, $52,236, and Agriculture/Natural Resources

degrees, $48,729. In retrospect, the bottom five degrees in aspect of starting salary are

Education/Teaching $34,891, Advertising, $35,700, Music/Drama $35,700, Public Relations

$36,200, and Psychology $36,300 (Adams, 2015). In comparison electricians as a journeyman, a

beginner, can make a salary range of $29,679 $80,787 a year depending on certificates and
Costly Education 5

other training received and demographics but without the price or time consumption a traditional

four year schools. Police officers make salaries ranging from $30,757 $81,485 without any

secondary education, but possibly having to graduate from a police academy (Medley, 2015). As

you can see there are options, more than these two of course, but maybe the traditional route is

not the feasible route anymore.

The other possible options are getting two year degrees or going to a vocational school

to learn a specific trade skill such as plumbing, welding, electrician, etc. On average these

alternative routes are much cheaper and quicker to graduate from. The average price to graduate

from a trade school cost, from start to finish, $33,000. That can be a cost savings of $98,000 of

student debt.

Statistically speaking college graduates with a four year degree still make more than

the non-graduating population and make more than two year recipients and trade school

graduates. Im not opposed to a four-year degree and nobody should. But with how dynamic the

countries economics are, it is no longer feasible or necessary for everyone to get a traditional

degree. Student debt is at an all-time high, approaching $1.4 trillion spread out among

approximately 44 million people (Student Loan Hero, 2016). As I finish up my four-year degree

and continue to find the right career for me and my family, I see that these young children need

more direction and need to hear their options. We no longer live in a society of only a few

holding all the knowledge and cards, we live in a society full of choices. Why cant secondary

education have more of a choice in our society? When is too much debt too much?
Costly Education 6

References

(2015). Retrieved from National Center for Education Statistics:

https://nces.ed.gov/fastfcts/display.asp?id=76

(2017, January 01). Retrieved from United States Department of Labor:

https://www.dol.gov/whd/minwage/america.htm

Adams, S. (2015, October 09). Retrieved from Forbes:

https://www.forbes.com/sites/susanadams/2015/10/09/bachelors-degrees-with-the-lowest-

starting-salaries-in-2016/#62748baa3155

Hamm, T. (2016, July 20). Retrieved from The Simple Dollar:

http://www.thesimpledollar.com/why-you-should-consider-trade-school-instead-of-

college/

Medley, D. (2015, July 09). Retrieved from Fox Business :

http://www.foxbusiness.com/features/2015/07/09/average-salaries-for-americans-median-

salaries-for-common-jobs.html

Poppick, S. (2015, April 22). Retrieved from Time: http://time.com/money/collection-

post/3829776/heres-what-the-average-grad-makes-right-out-of-college/

Student Loan Hero. (2016, March 10). Retrieved from https://studentoanhero.com/student-loan-

debt-statistics/