The average college graduate earns $78,000 a year compared to the $45,000 earned by someone with only a high school education, according to a new analysis. That's a 75% premium, or more than $30,000 a year.
With the cost of college constantly rising, it's easy to wonder whether four years of college is worth it anymore.
But new research from the Federal Reserve Bank of New York concludes: yes, a college degree still pays off. The average college graduate earns $78,000 a year compared to the $45,000 earned by someone with only a high school education, according to the analysis. That's a 75% premium, or more than $30,000 a year. The wage premium for a college education rose from less than $20,000 in the 1980's to $35,000 in the 2000's. Since then, it has fluctuated between $30,000 and $35,000 a year.
The net price is not only much lower than the sticker price, but it's also increasing at a slower rate, according to the researchers. The average sticker price of college grew from $5,000 annually to $18,000 between 1970 and today. But net prices increased from $2,300 to $8,000 during the same period. And the tuition isn't always the biggest cost involved in getting a college education.
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