Fed Report: College Diploma Worth $831K
Grads will out-earn those who skip college by that much, says study
By John Johnson, Newser Staff
Posted May 6, 2014 6:24 PM CDT
   (Shutterstock)

(Newser) – Is college still a good investment despite the soaring cost of tuition? Most definitely, concludes a new report by the San Francisco Fed. It found that most of those who graduate with a four-year degree can expect to earn about $831,000 more by retirement age than those who skip college. That includes the cost of tuition and four years of missed wages while getting the diploma, notes Reuters. Researchers found that after 10 years in the work force, graduates in the 1990s-2000s were making $26,800 more per year than those without a degree.

"Although there are stories of people who skipped college and achieved financial success, for most Americans the path to higher future earnings involves a four-year college degree," writes the Fed's Mary Daly. And as Quark puts it, "Yes, college is still worth it." (This columnist agrees.) The report ends with a recommendation to redouble the push to rein in college costs, saying it would be "time and money well spent."

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disqus_fhwSu2cRQ4
May 8, 2014 7:49 AM CDT
I can only speak from personal experience, I've worked in manufacturing most of my life but in general the people operating the equipment make a base wage, the technicians and trades with a 2 year degree make 50% more than the operators, the engineers make 50% more than the techs, and the managers make engineer plus 25%. You can't get an engineering job or a management position without a degree, and often not without a masters or above. The one exception I've seen to that is people that were technically trained in the military. No degree per see but it's viewed as if you do. Now having said that, the HR, and Finance people who also have a degree will often make about the same as the operators. So technical degree is worth some bucks, English degree not so much. And since the people with out a technical degree have a less chance of working in their field then is your sociology degree worth anything? Maybe not. But that degree in Engineering will be. So I found it odd that many of todays high school graduates don't even know what an Engineer is or does.
JERZJOE
May 7, 2014 10:02 PM CDT
I DON'T NEED NO COLLEGE DIPLOMA!! ALL I NEED IS TO HIT THE LOTTERY FOR MILLION$$$$$$!! FOR MY RETIREMENT!! PERIOD!! THERE YA GO!!
ddhartma
May 7, 2014 8:32 AM CDT
I receive emails and phone calls daily from companies and headhunters looking for mechanical, electro-mechanical, electronics, quality, and safety engineers for the medical, space, aerospace, and automotive industries. These are predominately on the East and West coasts for the space and aerospace industries and in the Midwest for the medical and automotive industries, but the jobs are there if you have the degree - and they pay very well. BTW: You can find, as I have, work in the space and/or aerospace industries in the Midwest as well if you look hard enough. Perhaps this article should have said that the right degree is worth it.