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Financial Services
Oklahoma Christian University
Tuesday, May 13, 2014

The Surprising Truth About The Rising Costs Of College

“The rising cost of college grabs endless headline attention. Yet too many are missing the reality that these costs don’t really outweigh the rising benefits,” The Motley Fool reports.

“First, it’s critical to see that, although the topline tuition number is rapidly rising, the actual cost of college hasn’t risen nearly as much. College Board reports that net tuition, which factors in financial aid, has risen 66% at public schools since 1991—just 2.2% a year. This is a far cry from the 160% growth seen in the published numbers.

The difference is even more striking at private schools, as the true cost is up by only 11% over two decades, from $11,270 in 1991 to $12,460 in 2014. …

Secondly, Pew Research Center found in its study ‘The Rising Cost of Not Going to College’ that the gap between what someone earns with a college degree versus someone without one has only widened over the years.
This salary gap between a high school diploma and a college diploma used to stand at just 24%, but it now sits at more than 60%.

Yet it doesn’t just stop there. The Federal Reserve also recently found the expected earnings from a college degree has risen in recent years. For those who graduated college in the 1990’s and 2000’s, they could expect to make $5,400 more in their first year than high school graduates. In 10 years, that ballooned to nearly $27,000.

Even with the rising costs, the Federal Reserve suggested ‘the benefits of college in terms of higher earnings far outweigh the costs of a degree,’ and ‘the average college graduate earns over $800,000 more than the average high school graduate by retirement age.’

It’s true the costs of college are rising, but it is vital to see the benefits are as well.”

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