COST BENEFIT ANALYSIS, COLLEGE EDUCATION

COST BENEFIT ANALYSIS, COLLEGE EDUCATION

            With college tuition increasing from one year to another, the question on whether it’s worth investing in it has remained a dilemma to many students. Many people still attribute college education with a successful future. Contrally, there are others who find it hard to justify the investment with what most people who have gone through the same system testify, however, no single path that has proved to work universally for all students. It is therefore important to critically evaluate the decision before making a choice.  No any simple answer in regard to whether college education is worthy investing in it, but there are various rational ways to think about it in order to come up with the right choice. Just like it is the case with any other investment, comparing the input towards college education (money, effort and time) and the expected output afterwards (education, income level, career and networking opportunities) is the first initial step. In a scenario where what is to be realized out of it is more than what is put in, it is considered to be a good investment. This paper gives a cost benefit analysis of college education just like any other investment to prove whether it’s worth or not.

Since mid-19th century, the world population in general is increasingly becoming educated, in other terms, more and more people are attaining bachelor’s degree level. For instance, a graph obtained from US Census Bureau of statistics in the year 2015 indicated that the percentage of the country’s population of people who attained a BA degree had increased from 4.5% to 32% between the year1940 to 2015:

There are different reasons which have been associated with such statistics in educational attainment over time, including:

• The decline in manufacturing job sector especially which requires unskilled workers.

• Most employers recruiting college graduates for certain jobs which initially did not require bachelor’s degree.

• The increased Government subsidy in higher education sector, making college education more affordable, which has in turn made its cost rise to meet the demand and therefore making it more expensive

Overall, the factors which influence how people view college education are many, right from financial to political factors. Currently, it’s considered very difficult to secure a good-paying job without a college degree. However, that does not mean that choosing to join college is the best choice always. It’s a hard decision that calls for critical thinking before it can be considered. In order to evaluate whether college is a worth investment to make, understanding the investments which must be made to have it and the possible benefits out of it is he first step.

The Cost of College

In order for college education to be attained, there are several sacrifices which must be made. And one of the factors which must be considered before investing in it is the extent to which such an investment will impact on one’s life in future. Generally, major investments which are made as far as college education is concerned are money, effort and time, and effort

Money

The amount spend for college education depends on several factors: the specific school, learners financial needs, learner’s academic strengths, potential of getting scholarships, etc. Investing in education is considered better if the amount of money spent to finance it is less just like any other investment. However, even in the scenarios where college education is very expensive it may also be worth if it pays back in the long run. Tuition fee has always been the obvious expense associated with college education, with other expenses like accommodation, books, transportation and personal other expenses. The money spend to finance college education may be invested in a business venture and profit realized before the 4-5 years of college education are over, this therefore becomes an opportunity cost.

Time

In order to complete the college education, many people take an average of 4-5 years. Depending on different career goals, such a period of time may be considered as an opportunity cost. This is because the learner may be losing out on some other opportunities like gaining job experience, making money or even both; just because he or she is busy for that time in school learning and out of work force. So, college education although preferred by many employers and associated with higher earnings, establishing a work experience in specific fields as well as accumulating wealth is valuable as well. Therefore, giving up on such opportunities is in its own a sacrifice that must be made in the expense of a degree.

Effort

To have a strong educational foundation, to make professional as well as personal connections is not a walk on the valley; it takes dedication and can be stressful sometimes. In most cases, it involves doing some things which are not desirable, like taking certain courses or doing uninteresting assignments. It is therefore important to consider such challenges before committing to college studies, especially when it comes with hefty price tags.

The Benefits of College

Employment Opportunities

Colleges as well as universities are considered as recruiting hubs by the industrial sector of the economy. A learner who happens to attend a highly ranked university or a college is considered to have many opportunities of  meeting with corporate employers who sometimes hire directly from those colleges and universities. The internships offered by corporates to college and university students are also considered as opportunities because in most cases they lead to permanent employment.

Higher Income

Compared to people who have not stepped in college, those with degrees are given higher salaries. Even though there may be many income opportunities sacrificed during the period of seeking the degree, afterwards the learner end ups making more. Most employers also assume that graduates are better qualified and therefore offering high salaries.

There are cases where college education may be considered useless, such cases are however limited. For instance, if a degree is not expected to open a door for professional success, depending on the career option considered by the learner, like budding entrepreneurs; a person can benefit more from the real world experiences than from the college education.  In a case where a person is confident to graduate from high school and start working directly, the college might not be an advisable venture.

Conclusion

Generally, college education is pretty a good investment. This is in consideration to the fact that most students who manage to finish college education realize its benefits, whether personal, financial or professional. But many others go for college education without even taking time to think whether it’s the smart choice. Many people feel that going to college is the way to becoming successful. However, as it has been seen earlier in this paper, there are scenarios where college education may not guarantee personal, professional or financial success. It therefore calls for a sound decision before investing in it. On the other hand, those who decide to pursue the alternative path must ensure wise time utilization lest they fall victims of same opportunity costs stipulated above. Building a professional experience or venturing into a self-directed culture is absolutely not an easy alternative to college education it’s just different.

Work cited

Barnett, W. Steven. Lives in the Balance:  Benefit-Cost Analysis of college education.         Monographs .Monograph Series, High/Scope Foundation, 600 North River Street,       Ypsilanti, MI 48198-2898, 2016.