Peter Stokes
Because of this, many people are beginning to question the viability of obtaining a higher education. I sat down with Peter Stokes, Vice President for Global Strategy and Business Development at Northeastern University, to find out if they have a legitimate argument.
More than half of college graduates are unemployed or underemployed. On top of that, many are bogged down with massive amounts of student loan debt. Because of this, many people are beginning to question the viability of obtaining a higher education. In this day and age, is college worth it?
According to the Bureau of Labor Statistics (BLS), in April of 2013 the unemployment rate for individuals aged 25 and older with a bachelor’s degree was 3.9 percent, compared to an overall unemployment rate of 7.5 percent. That ought to be viewed as good news for those pursuing a college degree. The situation for recent college graduates, of course, is not as rosy. As Anthony Carnevale of the Georgetown Public Policy Institute’s Center on Education and Workforce points out in his May 2013 report “Hard Times,” the unemployment rate for recent college grads is 7.9 percent – not good, but not dramatically worse than the case for the population overall. However, Carnevale also notes that unemployment rates for recent college grads vary significantly by major, with nursing majors facing a 4.8 percent unemployment rate at the low end, and with information systems majors facing a 14.7 percent unemployment rate at the high end. Likewise, naturally, earnings vary considerably by major, on average, and this affects graduates’ ability to manage their debts. Whether college is worth it depends on a number of factors, including the debt required to finance college and the career earnings one can reasonably expect subsequent to attaining a degree, among other matters.
Many also cite the high cost of attending American colleges as a hindrance to attendance. Is this concern justified, or just an excuse?
College pricing varies considerably, and potential debt levels will vary as well. Without question there are cases where individuals have paid significant sums, and incurred significant debt, to acquire a degree that lacks sufficient market currency to make managing that debt easy. And while college prices are rising faster than inflation, there’s little evidence yet to suggest that not going to college – any college – is a better economic decision than going to college for most prospective students.
Are there just some students who are not college material, and for their own sakes should be counseled to pursue other avenues, like vocational schools?
