Is an Undergraduate Education a Good Investment? Looking at Financial Returns of Differing Educational Levels
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Rising tuition rates are concerning to many young people who are deciding whether to go to college after high school. Looking at data from the Bureau of Labor Statistics, and data collected from the college board, rates of return on an undergraduate education were calculated. More specifically, the author analyzed the difference in return on investment between someone with a high school diploma, and someone with a bachelor's degree. The author found that the rate of return for a four-year public school is -55.22%in the first year, and -81% for an equivalent private school. However, the first year after receiving your bachelor's degree isn't what is important. An investment like a bachelor's degree is a long-term invest. Therefore, the author gathered the return on investment 20 years later. The return on investment for a bachelor's degree from a four-year public and private institution is 500.49%and 154.68%, respectively. With this information, the author concluded receiving a bachelor's degree might be a good investment given the individual financial situation.