Getting a college education has traditionally been seen as a way to move up the economic ladder. But an analysis by economists at the Federal Reserve Bank of New York shows that the cost of a degree may not always be worth it.
The value of a college education has increasingly come into question in recent years, especially as tuition costs steadily climb and millions of Americans grapple with student loans. As a result, only one in four U.S. adults say it’s extremely or very important to have a four-year college degree to get a well-paying job, according to a 2024 Pew Research poll.
To be sure, the case for attending college remains strong. Another study by the New York Fed found that in recent years the typical college graduate with a bachelor’s degree had annual income of roughly $80,000, versus $47,000 for people with only a high school diploma—a 68% premium.
Yet a recent study by the Fed bank suggests a college degree hasn’t paid off for at least 25% of college graduates in recent decades.
Read more at CBS News.
