Here's How Long It Takes To Recoup The Cost Of A College Degree

Business Insider ^ | 09/02/2014 | Rob Wile

[SeekAndFind]

College starts today for students across the country.

With tuition costs surging, we can't help but ask, "What are they thinking?"

In a new note, the New York Fed's Jaison R. Abel and Richard Deitz write that, looked at one way, these young people are making a sound investment as it now takes fewer years than ever for graduates to recoup their investment.

While you used to have to work nearly 25 years to earn back what you'd fronted for your degree, only about 10 years on average are now required.  

"Despite the challenges facing today’s college graduates, the value of a college degree has remained near its all-time high, while the time required to recoup the costs of the degree has remained near its all-time low," they write. 

However, that 10-year time-frame has not really budged since the late '90s.

New York Fed

Similarly, the value of a college degree has not increased since 2000, and has actually been decreasing of late.

"We estimate that the value of a college degree fell from about $120,000 in the early 1970s to about $80,000 in the early 1980s, before more than tripling to nearly $300,000 by the late 1990s, where it has remained, more or less, ever since," they write. 

New York Fed

That value of college has stayed near all-time highs despite rising tuition costs and falling wages for graduates actually has more to do with plummeting wages among high school graduates.

[longtermmemmory]

perhaps we need a list of “useless degrees”

many of the social political correct degrees end up in human resources divisions.

[Billthedrill]

I think the breakdown of that by Major would present a different and far better picture for some, more dismal for others.

Yes, I believe so. We're not talking entry level positions, we're talking careers, and while not everybody with a degree in Electrical Engineering makes more than anybody with a degree in Sociology, it's the way to bet.

[longtermmemmory]

Public universities are not what they used to be. Public universities have degenerated to make work projects for the unemployable.

Look at what has happed with the insane expansions of law school creations. There is no competition due to student loan non-dischargability. there are public universities that serve no function in present economics. They abandoned true advanced education loooong ago.

[woodbutcher1963]

When I was at Syracuse in the 1980’s the most popular degree for many of the JAPs from Long Island was Husband Finding 101.

[longtermmemmory]

in the ancient days they called that the M.R.S. degree.

That said, all kidding aside, a woman with a college education used to be classically trained in all the educational facets that made a person a well rounded individual. This allowed for an intelligent and worthwhile wife.

Today, the proliferation of fringe degrees created vitriol, anger, and an inability to actually think or even carry an intelligent conversation.