Consider the annual earnings data for 2017 that are provided in Figure 1.

Figure 1.

It shows that the median earnings of a college graduate with a Bachelor’s degree is $53,900 per year compared to $32,300 per year for a high school graduate. If a typical college graduate works 43 years their lifetime earnings will be $2.3 million. A high school graduate can be expected to work an additional four years (47 years total), resulting in lifetime earnings of $1.5 million. 

According to the College Board, an undergraduate student attending an in-state school and living on campus should budget $25,290 per year to attend college (including tuition and fees, room and board, books, transportation, and other expenses). What would you tell someone who wonders whether the high cost of a college education is worth the expense?  

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Median annual earnings in 2017 $120,000 $80,000 $40,000 SO $25,200 High school dropout $32,300 High school graduate $40,300 Associate's degree $53,900 Bachelor's degree $70,400 Stevenson/Wolfers, Principles of Economics, 1e, © 2020 Worth Publishers Master's degree $100,300 Professional degree