Higher education has been shown to provide substantial returns on investment for both individuals and society as a whole. Multiple economic studies have demonstrated that college graduates earn significantly higher incomes over their lifetimes compared to those without college degrees. In addition to higher earnings potential, investing in higher education also leads to lower unemployment rates, improved health outcomes, and greater civic participation among college-educated populations. However, some have argued that the rising costs of college tuition make higher education less affordable and may not be worthwhile for some students. Overall, the evidence suggests that increased public and private investment in higher education access and affordability can maximize the positive economic and social returns for both individuals and communities.
College graduates earn much higher incomes over their careers
As shown in the research cited in the provided articles, individuals with college degrees typically earn substantially higher incomes over the course of their working lives compared to those without degrees. For example, one study by Federal Reserve economists found the average annual return on investment for a four-year college degree to be between 9% and 16% per year when accounting for tuition costs, lost earnings from time in school, and increased lifetime earnings. The income premium for college graduates exists across nearly all fields of study. While outliers certainly exist, such as welders who can earn more than some college grads, the return on investment for the vast majority of college students is unambiguously positive from a financial perspective.
Investing in college leads to positive spillover effects
In addition to boosting incomes for graduates, research shows that increasing rates of college attainment provides significant positive spillover effects for society as a whole. For example, areas with higher percentages of college graduates have been linked to better public health outcomes, lower crime rates, and higher rates of civic participation and community volunteerism. College graduates are also significantly less likely to rely on publicly-funded programs. As such, even taxpayers without college degrees ultimately benefit from expanded access to higher education through savings on social services and incarceration costs. In short, public investments to improve college access and completion rates provide a high societal return.
Concerns exist about college affordability and value
Despite the demonstrated returns on investment from earning a college degree, there are reasonable concerns about affordability and whether college remains a worthwhile investment for all students in light of rising tuition prices and student loan burdens. Critics argue that taxpayers should not subsidize college for students unlikely to complete their degrees or find jobs that provide a return on investment commensurate with degree costs. And institutions of higher learning must continue innovating to provide quality, cost-effective credentials aligned with student and workforce needs. However, the aggregate evidence still suggests that increased public and private investment to expand access to quality higher education provides substantial net benefits.
Strategic investments in higher education access and affordability can maximize positive returns
Given both the clear economic and societal benefits of college completion as well as understandable concerns about costs and affordability, policymakers should develop coordinated strategies at national, state, and local levels to facilitate college access and completion. This includes funding to mitigate tuition burdens for low-income students, partnerships between universities and employers, improved availability of vocational training and certifications, counseling to improve student outcomes, and innovative online delivery models to contain costs and meet diverse learning needs. With thoughtful policies and sustained investments, the positive returns from higher education can be shared more broadly and equitably.
In closing, substantial evidence shows that increased public and private investment in higher education access and completion has significant net positive impacts for both individuals and communities via higher lifetime earnings, lower unemployment, improved health indicators, and spillover economic growth from a more educated populace.