Archive for the ‘Federal Reserve Bank of St. Louis’ Category

Is a College Cap and Gown a Financial Ball and Chain?

September 1, 2011 Comments off

Is a College Cap and Gown a Financial Ball and Chain? (PDF)
Source: Federal Reserve Bank of St. Louis

The cost of a four-year college education has risen roughly 150 percent since 1980. 1 For this and other reasons, more and more students must take out student loans to finance their education. Upon graduation, many find they have accrued a sizable debt. Given the significant expense, some question the value of earning a college degree. However, along with the rising cost, the lifetime earnings difference between college and high school graduates has widened. The increased earnings potential of a bachelor’s degree allows a college graduate to recover the cost of college over time and eventually surpass the earnings of those with only a high school diploma.

Includes bibliography of related articles and data sources.


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