College is Still Worth It, even with Student Debt, but We Can Do Better
- The Brookings Institution
- Nov 3
- 1 min read
Postsecondary education increases earnings and has been associated with non-pecuniary benefits for degree earners as well as their communities. However, in the face of rising college sticker prices, ballooning student debt, and an uncertain economy, prospective students and policymakers have increasingly questioned whether college is worth the costs, especially if students take out loans. Indeed, given the large increase in student debt and the various hardships associated with this debt, policymakers and stakeholders—including the Federal Reserve Bank of New York—have asked if college is still worth the costs. Thus, it is important to reevaluate the return on investment (ROI) for postsecondary education. Moreover, given the variation in the amount of loans, as well as earnings premiums across degree levels, it is important to understand the ROI across the postsecondary education continuum.
We set out to assess whether college is still worth it, financially. In doing so, we examined both the benefits and costs of postsecondary education. We find that when we account for student debt payments, degree holders still outearn those who do not complete a degree by an average of $8,000 a year.
