Costco Debate: Is College Worth It?

Does anyone read the Costco Connection — the free magazine the retailer mails to members and offers free in its stores? I always pick one up whenever I’m in the store (I’m in a group plan at work and the main account holder, the company, gets mailed a magazine). I usually find an article or two that I like as well as get to find out about some new products available at Costco. It’s not a real page turner, but then again, it’s free. One section I do always check out is the “Informed Debate” column. In it, Costco discusses a question for the month, then asks six club members (three on one side and three on another) and two “experts” (one on each side of the issue) for their thoughts. Then, over the next month, Costco takes votes on the issue from members. The votes can be delivered online, via email, by fax, or by snail mail. In the next month’s magazine, the vote is revealed for the previous month. April’s question especially caught my eye since we’ve discussed it here on FMF. It was: Is college worth it? Costco laid out the debate as follows in its opening statements:   College is very expensive.     Some say the cost is worth it because college grads make more, experience less unemployment, and are better prepared for life.     Others say that the cost of college is not worth it for many people — that they’d be better suited to get some sort of alternative training and enter a field that doesn’t require a college education.   The three members who said college was worth the cost gave these reasons (I’ll paraphrase):   If you know what you want to do and it requires a degree, then it’s worth the cost.     You can find an inexpensive school, take steps to control costs, and leave college with a degree without financial hardship.     Employers think those with college degrees are achievers and thus will be more likely to hire you.   The three members who said college was not worth the cost gave these reasons (I’ll paraphrase):   I don’t have a degree and I get paid more than people I know who have one.     Leaving college with a ton of debt (she said $140,000-plus) is not the way to prepare for a well-rounded and healthful life.     Skills acquired on the job are more valuable than those gotten from a textbook.   The expert saying college was worth it said (I’ll paraphrase):   Technology is changing the economic landscape. To keep up and compete in a more-skilled environment, most workers will need college educations.     Employers look for those with degrees and are willing to pay more to workers with one.     Even in professions that supposedly don’t need a college degree (he cites insurance salesmen and police officers), those with degrees make more and are better workers.     Those with college degrees are less likely to be unemployed.   The expert saying college was not worth it said (I’ll paraphrase):   Too many people go to college these days and many who do would be better off getting some other sort of education or training.     College is so expensive that the cost is often not worth the payout.     The number of jobs requiring a college degree is growing far less rapidly than the number of new college graduates.     Summary: excellent students (good grades, high test scores, and low chances of failure) should get a degree and poor students (with poor grades and test scores) should instead consider non-degree vocational programs or community college. Those in the middle have the toughest (not clear) choices and should first try the non-degree options and, if successful, then consider getting a college degree.   My take is that the answer is, like the answer to almost every personal finance question ever discussed, “it depends.” Sure, if the student is not prepared, borrows wildly for a degree where he can’t earn much, and/or only finishes part of his education, then it’s likely a bad decision. On the other hand, if the student applies himself, does well in college, and leaves school with little to no debt and with a good-paying job and bright career prospect, then it’s likely a no-brainer. As the second expert said, the situations in the middle of those two extremes make for the debate. Overall, my opinion is that going to college is more often worth it than not as long the student leaves with a reasonable amount of debt based on his expected profession. I think the gap between going to college and not going is shrinking, but that on average you’re still better off financially with a degree. What’s your take?

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Costco Debate: Is College Worth It?