Is Skipping College Too Expensive for Young People?

Is a college education truly worth the investment? This is a valid question, particularly for university leaders like myself. High tuition costs, the significant debt burden, and the perceived limited job prospects for some graduates all contribute to the debate about whether bypassing college is a financially sound choice. According to the National Center for Education Statistics, the average annual cost of a bachelor’s degree in the 2022-2023 academic year was $9,800 at public institutions and $40,700 at private, non-profit institutions.

But what if the most costly choice is to forgo college altogether?

Let’s take a broader view of one’s career trajectory. Choosing to enter the workforce or a short-term training program immediately after high school may seem appealing, offering immediate income and avoiding student loans. Furthermore, this path allows for four additional years of earnings. Initially, it appears to be a more advantageous start.

However, a college education is not solely about the subsequent four years, but rather the following 40, 50, or even 60 years for today’s youth.

Throughout their careers, college graduates typically earn considerably more than their counterparts with only a high school diploma, leading to a widening income disparity over time. A 2021 study by the Georgetown Center on Education and the Workforce indicates that college graduates earn a median of $2.8 million over their lifetimes, which is 75% more than the $1.6 million earned by those with just a high school degree. Consequently, a decision that seems prudent at age 18 could become a financial disadvantage later in life.

Financial security should be a key consideration for young people when planning their futures, as should job security. Recent data suggests that the unemployment rate for workers with only a high school diploma is 4.2%, while it’s only 2.5% for those with a bachelor’s degree. During the onset of the COVID-19 pandemic in April 2020, the BLS reported that unemployment among high school graduates surged to 17.7%, more than double the 8.4% unemployment rate for college graduates. In an increasingly uncertain world, the protective effect of a college degree can determine whether one weathers a crisis or succumbs to it.

Many young individuals who opt out of college aspire to launch their own businesses. Certainly, numerous successful tech entrepreneurs, such as Bill Gates, Steve Jobs, Mark Zuckerberg, and Jack Dorsey, have become symbols of this decision. These individuals have achieved extraordinary success. However, for every Mark Zuckerberg who achieves immense wealth, countless others struggle to find success.

In addition to financial and job security, colleges provide valuable networks that encompass diverse industries, fields, areas of expertise, and generations. Classmates, professors, alumni, and staff can serve as crucial sources of lifelong guidance and support. These connections can also function as mentors, providers of strong references, future employers, and even potential collaborators.

Networks developed through a multi-year college experience should serve as a foundation for financial success, social mobility, and a brighter future, shaping a person’s career and life in ways that a job immediately after high school cannot. In fact, research by Harvard economist Raj Chetty revealed that children from lower-income families who attend colleges with higher-income peers are significantly more likely to ascend to the top 20% of the income bracket compared to their lower-income peers who either do not attend colleges with higher-income students or choose to forgo college altogether.

Inextricably linked to personal and professional success is well-being, which colleges foster in ways that resonate long after graduation. Recent studies offer a compelling picture of how higher education affects both mental and physical health. The Department of Health and Human Services reports that college graduates have better self-reported health and are less susceptible to heart disease, high blood pressure, diabetes, and anxiety. One factor contributing to these improved health outcomes could be that college graduates typically have better access to healthcare. These and other findings suggest that forgoing college has consequences that extend beyond lost income and diminished job stability—consequences that could significantly impact physical health, mental well-being, and overall life satisfaction.

Of course, college is not the ideal path for everyone, and for some, particularly at the age of 18, college may not be the optimal route to eventual success, given their individual circumstances, interests, and self-created or available career opportunities. From a societal perspective, we undoubtedly require individuals trained in various non-college professions to maintain the vitality of our economy and communities. However, before hastily deciding against attending college, we must avoid shortsightedness, as the long-term effects of such a decision are substantial.

The true benefits of a college degree accumulate in earnings and overall well-being, not only over years but over decades. Sacrificing long-term gains for short-term impact may appear to be the expedient choice, but it raises a fundamental question: What if the most costly decision is not going to college at all?