WASHINGTON – Despite stagnant incomes and steadily rising tuitions, more students are pursuing college degrees because the return on investment has never been greater. In addition, it’s a good use of time during a down economy.
That’s what the lead researcher of two reports on economic trends in higher education said Tuesday during a conference to discuss the reports, which are being released today.
“Of course, college doesn’t pay off for everyone,” said Dr. Sandy Baum, an independent policy analyst for the College Board and Professor of Economics Emerita at Skidmore College. “But people understand that, if they want to have good prospects throughout their lives, it’s worth it to ake the sacrifice now and go to college to get the long-run benefits.”
“What else are you going to do with yourself?” Baum said, referring to job prospects during a bleak economy. “People can’t find good opportunities in the labor market and therefore decide to go back to school.”
Baum made her remarks to provide context and perspective on the 2011 versions of the College Board’s annual companion reports, titled “Trends in College Pricing” and “Trends in Student Aid.”
The pricing report shows that tuition at public four-year universities rose 8.3 percent for the 2011-12 school year, or jumped $631 to $8,244. However, it notes that much of the increase is attributable to the 21-percent tuition hikes in California, which enrolls about one-tenth of the nation’s full-time public four-year college students. Without California, the report states, the increase for public four-year colleges would be 7 percent.
Similarly, the report found, the increase for public two-year institutions was 8.7 percent including California, and 7.4 percent without California, for an average of $2,963, up $236 from last year.
