High School Graduates Reconsidering Four Year Degrees

According to billionaire Elon Musk, a college degree is not required to be successful. He regards college as a place to have fun, rather than a place of learning. And it seems many young Americans agree – post-pandemic, there has been a remarkable downtrend in college admissions in America. The likelihood of attending a four-year school sank from 71% to 51% in the past two years and less than half of high schoolers graduating this month want to attend a four-year college.

The employment market is strong right now and these graduates are choosing shorter, more career-oriented courses over academic four-year study programs. The rising costs of four-year schools is a factor, but graduates are very aware of the current employment opportunities available right now. So, many young Americans are choosing to attend a technical school and doing an apprenticeship when they qualify. That way, they enter the job market sooner and start earning a good salary right away.

Although there is a growing interest amongst student in the shorter, more career-oriented courses, many parents prefer a four-year degree. However, the rising cost of these programs has led to a serious student loan debt crisis in America. Some colleges are increasing fees as much as five percent in the next academic year, citing inflation as the reason.

In 1980, the price to attend a four-year public college full-time was $10,231 annually including tuition, fees, room, and board. The average cost of college in the United States is $35,331 per student per year, including books, supplies, and daily living expenses.

• The average in-state student attending a public 4-year institution spends $25,487 for one academic year.
• The average cost of in-state tuition alone is $9,349; out-of-state tuition averages $27,023.
• The average traditional private university student spends a total of $53,217 per academic year, $35,807 of it on tuition and fees.
• Considering student loan interest and loss of income, the ultimate cost of a bachelor’s degree can exceed $400,000.

The Value of a Four-Year Degree

Studies show that a four-year degree can significantly increase your earning power. And the hot employment market makes that even more attractive. Companies predict they’ll hire about 31 percent more graduates this year than from the Class of 2021. The increased demand for workers is also driving starting salaries higher for some majors. [6] Computer sciences majors top the list, earning $75,900 right out of college. That’s followed by engineering graduates. 

“Depending on what course of study you choose, a four-year degree program may well still be worth the investment,” says Michael Norton, Senior VP of Investments, for David Lerner Associates.

Do your research and use this education planning calculator to plan for college saving.

 

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