The cost of college continues to rise at a sickening rate, and the economy's troubles are causing many families to reevaluate the wisdom of sending a child to college. But, as a new College Board study demonstrates, college can significantly improve a person's financial standing.
The company reports this week that college graduates earn nearly $22,000 more per year, on average, than those with just a high-school diploma. College grads are also unemployed at a significantly lower rate than diploma-holders: In 2009, the difference was a striking 5.1 percentage points.
A person's earnings power is so much greater if she goes to college, College Board president Gaston Caperton says, that financing 100 percent of a university education can make sense. "Even for students who use loans to finance all of their tuition, it would take only about 11 years to recoup the cost plus the foregone earnings," Caperton notes.
That being said, it's more cost-effective to pay for college without taking on debt. For young parents, in particular, the time to begin saving is now: Lender Sallie Mae estimates that, for a child born this year, public college will cost $177,000 – and a private school will cost a staggering $365,000.