Over the years, higher education has faced several criticisms, including cost, quality, and job placement. Are college degrees what they used to be?
First, a little history. Like almost any industry, higher education has been greatly impacted by technological advancements in recent years. Some universities have been slow to adapt, while others, like Indiana Wesleyan University (IWU) were at the forefront. In the 1980s, IWU started offering education to working adults, which was a revolutionary idea at the time. In the 1990s, IWU started its first online classes.
The adoption of flexible education options has led to a significant increase in the number of U.S. adults with a bachelor’s degree. According to the U.S. Census Bureau, only 4.6% of U.S. adults had bachelor’s degrees or higher in 1940 compared to 36% by 2019. This is a dramatic increase.
So is this investment worth it today? And how can a college degree benefit you?
Career Flexibility.
There are educational alternatives to a college degree. Companies like Google are providing professional certificates and the apprenticeship model is beginning to gain popularity once again. These alternatives can be a good option for some; however, the training is very specific compared to the broader critical thinking skills in a bachelor’s degree. The Bureau of Labor Statistics showed that the average 18-year-old will have 12 different jobs by the age of 50, with multiple career changes. Broad skills can make a big difference in navigating a career.
Networking.
“It isn’t what you know, but who you know.” While I do not completely agree with this quote, I believe that who you know opens up opportunities in life, and it is “what you know” that determines whether or not you will capitalize on those opportunities.
Universities are a fantastic place to build your network. Whether it is the friendships you develop with the students in your class or professors, these connections come in handy over your career. In fact, universities have alumni associations and career development centers to help build your network and increase your job prospects. Living on campus does provide an increased sense of community compared to the online environment. However, the advent of social media and increased adoption of virtual meetings during the pandemic has made network-building even easier, even if you are taking a degree completely online.
Income.
Some people become millionaires from pro-sports, playing video games, or winning the lotto. However, the likelihood of this happening to you or me is less than getting hit by lightning. Would you prefer a surer path to a strong income and healthy financial future? The average American worker with a high school diploma earns over $37,000 a year, while those with a bachelor’s degree are over $60,000 a year (US Census Bureau 2019 data)! This makes a tremendous difference in one’s ability to save, give, and plan for a secure financial future.
There are some nuances to the data above. Certain degrees have a higher earning potential than others. Make sure that the cost of your education and any corresponding debt can be easily sustained by your future earning potential. A good rule of thumb is to not borrow more for a degree than what your entry-level salary will be in your new job after graduation.
All in all, do not overlook the power of a college degree in today’s job market. For many jobs, a college degree is still required before you can even apply to the position. Also, the benefits of a degree cannot only be expressed in dollars. The relationships, flexibility, and experiences can increase your personal happiness and life satisfaction far into the future. And yes, it can help your 401k balance, too.