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But if it leads to a significant increase in income, putting the money in could be financially worth it. This is especially true for public universities that charge in-state tuition: The average graduate only needs to earn $50,000 a year for 10 years after graduation to see a return on the investment, The Wall Street Journal reported. reportCiting new research from the Strada Educational Foundation.
Meanwhile, graduates who can save $500,000 pretax over 10 years are generally better off paying off their student loans, and this finding applies to public school graduates across all disciplines, The Wall Street Journal reported.
“If you have more than $50,000, you can see a positive return on investment even in the most expensive states,” Nicole Torpey Szabo, Strada’s vice president of research, told the paper.
Although the cost of living is higher in states like New York and California, these states have excellent job markets and more opportunities for internships and entry-level jobs, allowing recent graduates to earn more than their peers.
According to The Wall Street Journal, Strada’s research found that about 80% of state college graduates in these states saw a return on their college investment, compared with 60% in West Virginia and just over 50% in Idaho.
The nonprofit also found that community colleges don’t offer as big a boost in revenue, and private, nonprofit colleges tend to be more expensive, up to $8,000 a year, plus $11,000 for room and board.
Taking out student loans to pursue a four-year degree may be daunting for many: student loans can haunt borrowers for decades, college campuses have become hotspots for protests and political clashes, food, fuel and housing prices have all skyrocketed, and monthly credit card, car and mortgage payments have skyrocketed.
But an affordable degree that boosts your earning potential and career prospects without breaking the bank can still pay big dividends.