Last week, three new reports were released that
provide information about the perceptions of Americans about the value of
higher education and about the return on investment of various majors. I will
summarize the important points from each report.
The Associated Press-NORC Center for Public Affairs Research
The report published by these organizations is
titled “Young
Americans’ views on the value of higher education.”
The report summarizes the results of interviews conducted between August 7 and
September 9, 2019, with 265 teens age 13-17 and 1,036 young adults age 18-29.
Some of the statistics are broken down between those two groups, and some are
based on the total aggregate. Many of the findings are also disaggregated based
on political affiliation and household income. Here are some of the key
findings:
- 61% of teens and 42% of young adults plan to attend
or have attended a four-year college.
- 77% of teens and 55% of young adults plan to or have
already taken out student loans.
- 62% of young people are concerned about making
enough money to earn a good living.
- Only 22% of young people think there are more
disadvantages than advantages of attending a four-year college.
- 70% of teens say their parents have indicated they
will help pay for college tuition, but only 52% of young adults report getting
this help.
- More affluent young Americans are more likely to
attend or plan to attend a four-year college.
Strada Education Group & Gallup
The report published by these organizations is
titled “Changing
the value equation of higher education.” Gallup interviewed
340,000 people from all education pathways to create a dataset so large and
deep that educators, policymakers, and employers can take action on the
results. This Education Consumer Survey considered two dimensions: cost value (whether consumers believe
their education was worth the cost) and career
value (whether consumers believe their education made them an attractive
job candidate). Here are some of the findings from this report:
- Consumers value their education when they clearly
see its connection to a career.
- Consumers report higher rates of value for
vocational and technical programs and graduate degrees than the terminal
bachelor’s degree. Only 40% who received a terminal bachelor’s degree believe
it was worth the cost, and only 48% believe it made them an attractive job
candidate.
- With a bachelor’s degree, consumers value majors
that are closely aligned with specific careers, such as health care,
engineering, education, and computer science.
- Only 34% of liberal arts graduates strongly agreed
their degree was worth the expense, and 36% strongly agreed it would benefit
their careers.
- Consumers in any pathway see greater value when they
see the relevance of their coursework in their work and day-to-day life.
U.S. Department of Education
Last Wednesday, the U.S. Department of Education
published additional data on the College Scorecard
that allows consumers to compare student debt and first-year of earnings of
graduates by major or graduate degree program at 4,400 institutions of higher
learning in America that receive Title IV funds. Previously, the College
Scorecard included only schoolwide statistics on debt and earnings of
graduates. This additional information allows consumers to consider the return
on investment for each program at each institution.
To protect students’ privacy, the government isn’t
publishing data on programs with few students. For programs making the cut, the
data show debt loads at graduation for students who finished college in the
2016 and 2017 school years. It also reflects how much students who graduated
during the 2015 and 2016 school years earned a year after leaving school,
excluding those who re-enrolled. The data were drawn from the Internal Revenue
Service and federal student loan data.
According to the Wall Street Journal, at most programs
graduates typically earn more in their first year of employment than what they
borrowed in total for their degree. However, 15% of programs had graduates
carrying debt greater than income, and 2% had graduates who owed more than
twice their annual salaries.
Like this:
Like Loading...