A College Degree Is a Great Investment

By Tom Horgan, president and CEO of the New Hampshire College and University Council

Since the economic downturn, a growing number of columns and op-eds have questioned the value of a college education. While most are not as vitriolic as the one published in my hometown newspaper last month, they make arguments that are not only inaccurate, but mislead consumers and unfairly represent the hard work going on at public and private not-for-profit colleges and universities.

While no one suggests that college is for everyone, the truth is that for those who take their education seriously, going to college offers a truly life-changing and enriching experience.

Unquestionably, college today is a major investment, and tuition rates are a real concern for students, families and higher education leaders. Finding ways to reduce costs, improve educational quality and increase access needs to be addressed with thoughtful solutions, not outrageous and unsubstantiated claims.

Despite the statements of critics, there is no denying that a college degree remains one of the best investments you can make. College graduates on average earn more, advance in their careers more quickly and hold better jobs. They also are more engaged in their communities, are more likely to vote in elections and typically utilize far fewer and costly social services.

Recently, the College Board released Education Pays, a report full of interesting data about the value of a college education. Here are a few compelling findings:

• The median earnings for women between the ages of 25 to 34 who hold a bachelor's degree were 79 percent higher than for female high school graduates, up from 60 percent a decade ago.

• For those with some college, but no degree, they still earned 17 percent more than high school graduates.

• Lifetime earnings, over a 40-year work life, are 66 percent higher for a college degree holder than for a high school graduate.

• As for educational debt, the report states that "the typical four-year college graduate who enrolled at age 18 has earned enough by age 33 to compensate for being out of the labor force for four years and for borrowing the full amount required to pay tuition and fees without any grant assistance."

• Regarding community involvement, in 2009, 43 percent of bachelor's degree recipients participated in community service activities, compared to only 19 percent of high school graduates.

• And there was a gap of 30 or more percentage points between the voting rates of four-year college graduates and high school graduates in 2008.

In July, the Bureau of Labor Statistics released unemployment rates by educational attainment. The report found unemployment for high school graduates was more than 10 percent. For those holding a college degree, it was only 4.5 percent.

Perhaps the reason my home state of New Hampshire is experiencing relatively low unemployment, and our citizens are so engaged in their communities, has something to do with the fact we are the seventh most highly educated state in the nation.

For those interested in fully participating in the best of the 21st century, a college degree is increasingly important. But we should never forget that getting a good job isn't the only reason for going to college. Learning to appreciate the arts, the importance of democratic principles and the diversity of the world's cultures are arguably even more important than training for a specific job.

Indeed, the very health of our American democracy depends on a well-educated citizenry, men and women with the skill to discern the difference between an argument founded on truth and one founded on ignorance or prejudice, or a desire to mislead. We should all hope that our future leaders are acquiring this fundamental skill by studying hard in college today.

America's colleges and universities, and not just our most elite institutions, remain the envy of the world and dominate global rankings. The preservation of this status is vital to maintaining our competitive advantage, which is built on innovation and fueled by strong and diverse public and private higher-education institutions.

As New Hampshire recovers from the economic downturn, our highly educated population will undoubtedly serve us well. If New Hampshire and the nation are to be prepared to compete in a new global future, we should do all we can to encourage students to be as well prepared and, yes, as highly educated as they can possibly be.

Advising a student that pursuing a college degree is a bad economic decision is not only inaccurate, it's frankly just wrong.

Adapted from an op-ed originally published in the New Hampshire Union Leader on November 27, 2010.