BiggerPockets

I have been noticing a trend. And the trend goes like this: the return on investment for those attending 4-year universities is decreasing substantially. For the amount you pay to attend college, it is in many cases not worth the tuition investment. With tuition prices increasing every semester at many schools, I cannot see the light at the end of the tunnel.

Am I alone in noticing this trend? Is university education becoming obsolete, especially regarding increased income opportunities following graduation?

Just curious to hear what the BP community has to say...

Just throwing it out there, but my guess is that any empirical data you've collected isn't statically significant when trying to determine an overall trend. In other words, the observations you've made on a small scale may not hold true on a national level (they may, but that would just be coincidence).

Do you have any data to support your belief in this trend? I'm fairly certain that if you phrase the question in a way that allows for a more quantifiable answer, you should easily be able to find the data you need to determine if the trend actually exists.

Sorry to be so analytical about this, but I have a major pet peeve with people thinking their daily observations necessarily correlate to what's going on at a much bigger level. If that's not what you were doing, I apologize.

Before attending college, how many of you ever think of what you expect to learn from college, what kind of life you will have in college, and what career you will pursue after graduate? I dont, and don't even know what I am interested in. Just everybody goes to college, and so do I. But I did develop my interest that I can take as a career when I was in college. Just curious how many are like me. Maybe I am a outlier.

Joey, I find that university education will not become obsolete because of the relationships that can be created and the networks that can be created.

If you go to a university focus on building relationships with people who take action.

I graduated from Purdue University and the relationships that I created in the 90's have helped me immensely.

There is something to be said about the value of the overall experience of a college education. When I say college education, I am referring to a 4-year university, not 3 years at a community college, then some part-time or online college.

Obviously certain majors have better statistics with respect to salary & employment data, but part of going to college is learning about yourself & pursuing a degree in a field one finds interesting. In addition, the general education requirement at most universities (hopefully) expose one to subjects as well as people, that one might not otherwise have been exposed to.

There are other pursuits in life besides money. The college experience happens to allow one to experience it all.

Aaron,

You're allowed to disagree!

That being said, I can't imagine a better place for 18 year old to spend the first 4 years of their post-high school lives, though I can imagine the military as possibly being a good experience.

I would argue against the "too expensive" & "too time consuming" points. As to too expensive, there are plenty of good public colleges that aren't terribly expensive.

As to "too time-consuming" what else are you going to do from 18-24? Sure you could go into sales or a trade and make some OK money in your early 20s, but over time that 4-years in college is time well spent. I'm sure that, as a group, the college graduates' quality of life, if charted, would quickly surpass the non-graduates pretty quickly. After that everything is gravy.

The "investment of the self with a large fiscal component" is certainly worthwhile, IMO, if in addition to the extra one earns over their lifetime with a degree, they come out as a better, more well-rounded individual.

Within my various sample populations/circles of friends/colleagues/acquaintances, all of the ones that went to college are doing a lot better in life than those that didn't, and it's not even close. That's enough proof for me.

A college education is in no way, shape, or form obsolete.

Anyone who thinks he has it all figured out when he's 18 -- and this comes from someone who had it all figured out when he was 18 -- is a fool.

Even if you think you're going to be an entrepreneur who will never apply for a job in his life (and good luck with that), you will still need a resume to impress lenders, investors, partners, etc. And that resume has to show that you didn't stop your formal education after the 12th grade.

I think if I had it to do over again, I would have pursued a liberal arts undergraduate degree, using those years to learn more about history, the arts, literature, language, etc. I'd take a few business courses, for sure, but in my view the "good stuff" doesn't really come until graduate school.

And then, I'd send myself to the absolute best school I could borrow my way into, damn the cost.

I once looked into going to Wharton for an MBA as an adult (the regular program, though, for two years full-time), and I came to learn that, at least at the time, PNC Bank would loan you 100% of the tuition cost, and they qualified you for the loan solely based on the fact that you got into Wharton. Paraphrasing the PNC brochure, "When you leave Wharton, you won't have any problem paying back our loan."

I think there's something to be said for that.

Plus, as has been stated, the networking opportunities that going to college creates can be priceless, especially if you go to a school that is known to generate business leaders. I have a couple friends who went to Top 5 Ivy League schools, and there's no doubt that the "clubby" nature of these institutions is a gift for those who know how to use it.

So, in my opinion, college is an absolute must. If not for the education, then at least for the girls and the beer.

Fair point. However, I think any college degree is better than none.

Having said that, if someone can't more than offset the cost of a basic four-year college education over 40 years of working, then perhaps that person shouldn't go to college after all.

this is always a toss up for me...on one hand, i don't use my degree, and hopefully will never have to...the money spent on a degree (that some said above will take 40 years to pay off) could be better invested into a business or real estate if you're sole goal is income....

on the other hand, i'm a better person because i went to college...i think the point of the whole liberal arts course catalog is to make students take classes outside of their discipline...literature that we were forced to read in college teaches us ethics, human responsiblity, empathy, etc. my college made me take a Great Books class, 2 philosophy classes, a theology class, ethics, logic, etc. None of these were for my major but were still required. I'm a more knowledgable person and can see other sides of the story better bc of these classes. Will I ever use the info for business? Not direclty. I dont plan on quoting Plato anytime soon. However, it's easy to see how some of the material can enhance your life, and your business relationships.

Here is a real easy way to see if a College Degree is "worth it." Go through any Help Wanted section for professional jobs and see how many say "Degree Required." My last job as a Finance Director was "Degree Required."

Now tell me if you think a degree is "worth it!"

Here is one example for VP of Finance:

QUALIFICATIONS GUIDELINES:

Education:

Bachelor's Degree in Accounting, finance or related discipline required, MBA preferred.

Certified Public Accountant (CPA) required.

http://jobview.ocregister.monster.com/VP-Finance-Job-Huntington-Beach-CA-US-97787801.aspx