The Giant Noodle
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Daunting debt makes some wary of higher education
Wracked by recession, choked with debt and uncertain about the future, more Americans are asking: Is college worth it?
The question is understandable. Private college tuition and fees have risen 70 percent over the past decade, according to the College Board. That is more than twice the rate of inflation. Public college tuition and fees have doubled in the same timeframe.
But while college debt has proven a financial chokehold for some people, a four-year degree is still great insurance, especially in a tough job market: The unemployment rate for people with a bachelor’s degree or higher was 4.5 percent in July, compared to 10.1 percent for those with only a high school diploma.
Perhaps the greatest lesson of the Great Recession isn't that you shouldn't go to college, but that you should approach it like you would any other investment: with caution.
“It’s a very risky investment,” said Laurence Kotlikoff, an economics professor at Boston University and president of Economic Security Planning Inc., which makes financial planning software.
Calculations done by Kotlikoff for msnbc.com suggest that attending a public college might make more financial sense than a private college. Private schools charge $26,300 a year on average, compared with $7,000 for in-state students at public, four-year schools, according to the College Board.
CONTINUED: Is it worth it to go to college? - Business - Personal finance - msnbc.com
Wracked by recession, choked with debt and uncertain about the future, more Americans are asking: Is college worth it?
The question is understandable. Private college tuition and fees have risen 70 percent over the past decade, according to the College Board. That is more than twice the rate of inflation. Public college tuition and fees have doubled in the same timeframe.
But while college debt has proven a financial chokehold for some people, a four-year degree is still great insurance, especially in a tough job market: The unemployment rate for people with a bachelor’s degree or higher was 4.5 percent in July, compared to 10.1 percent for those with only a high school diploma.
Perhaps the greatest lesson of the Great Recession isn't that you shouldn't go to college, but that you should approach it like you would any other investment: with caution.
“It’s a very risky investment,” said Laurence Kotlikoff, an economics professor at Boston University and president of Economic Security Planning Inc., which makes financial planning software.
Calculations done by Kotlikoff for msnbc.com suggest that attending a public college might make more financial sense than a private college. Private schools charge $26,300 a year on average, compared with $7,000 for in-state students at public, four-year schools, according to the College Board.
CONTINUED: Is it worth it to go to college? - Business - Personal finance - msnbc.com