How Much is a College Degree Worth?

How Much Is Your Degree Really Worth? A practical breakdown of the cost/benefit analysis of going to college Opportunity Cost: In the four years it takes to earn a Bachelor's degree, you could get a full time $301,389 job and start earning money. So when all is said and done, exactly how much are those 'best years of your life' setting you back? $28,880 How much are you passing up? High school graduates earn an average of $31,300 per year, but average cost of living will eat up $24,080 of those earnings. $37,761 Forgone net earnings $214,998 $16,856 Potential earnings $125,200 $28,880 Loan interest Net earnings $19,246 School expenses $28,880 $16,856 $121,572 Cost of Tuition cost living $54,696 $96,320 Public university: Private university: No university: Time to Break Even: Financing the cost of your college education can rack up a significant amount of debt in a very short period. Many feel that the higher earn- ing potential of a college graduate will pay this off quickly and easily. However, the time to break even is growing, as tuition costs increase and the income gap between high school and college graduates shrinks. 1990 2000 2010 Income Difference $110,000 $100,000 $90,000 Private $80,000 Tuition $70,000 $60.000 $50,000 $40,000 $30,000 Public Tuition $20,000 $10,000 $0 1 year 2 years 3 years 4 years 5 years 6 years 7 years Lifetime Earning Potential: The difference in lifetime earnings between high school and college gradu- DIGR ates has been regularly quoted between $800,000 and $1,000,000. However, Bachelor's Degree: $1,189,836 this number is based on outdated income levels and does not take inflation into account. Though seemingly large Lifetime Difference In Earnings: $451,227 still, the actual difference is much less. High School Diploma: $738,609 Sources: College Board National Center for Education Statistics Minnesota Office of Higher Education