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The expected income and wealth boost from earning a college degree has slowly been shrinking while the cost of college and student debt burden has been rising, according to a report from the Economic Policy Institute (EPI).
At the same time, degree holders still believe college attainment leads to future financial comfort.
"Financial well-being was higher for those who attended college, and even more so among those who completed at least an associate degree," the Federal Reserve Board's eighth annual Survey of Household Economics and Decisionmaking (SHED), which surveyed more than 11,000 adults in November 2020, stated. "In contrast to associate degrees, certificates and technical degrees were associated with only modest increases in well-being over those reporting a high school degree."
And while research and recessions consistently show that higher education attainment generally leads to better financial outcomes, the actual value of the college premium is being revisited.
“We’ve been telling everyone college is the golden ticket,” ‘Making College Pay’ author Beth Akers told Yahoo Finance Live (video above). “Not really. It’s an investment, and like any other investment you need to make critical decisions and use economics to make sure that you’re making a choice that’s going to pay off for you.”
At the same time, degree holders still believe college attainment leads to future financial comfort.
"Financial well-being was higher for those who attended college, and even more so among those who completed at least an associate degree," the Federal Reserve Board's eighth annual Survey of Household Economics and Decisionmaking (SHED), which surveyed more than 11,000 adults in November 2020, stated. "In contrast to associate degrees, certificates and technical degrees were associated with only modest increases in well-being over those reporting a high school degree."
And while research and recessions consistently show that higher education attainment generally leads to better financial outcomes, the actual value of the college premium is being revisited.
“We’ve been telling everyone college is the golden ticket,” ‘Making College Pay’ author Beth Akers told Yahoo Finance Live (video above). “Not really. It’s an investment, and like any other investment you need to make critical decisions and use economics to make sure that you’re making a choice that’s going to pay off for you.”
Data highlights the difference in perceived and actual value of a college degree in America
No thanks to the rising cost of college and the need to take on student debt, the boost in income and wealth from earning a postsecondary degree — known as the "college premium" — has slowly been shrinking.
finance.yahoo.com