Why Graduates Are Not Getting Their Return Of Investment
In 2023, the Wall Street Journal showed that 56% of Americans believe that time and money spent on a degree is not worth it. This was reflected in the latest Bloomberg analysis – people are not getting their money’s worth by studying in elite private institutions unless they study in Ivy Leagues. For those in Ivy Leagues, their return of investment in 10 years can reach up to $265,500 (approximately over 1 million Ringgit) unlike their private college counterparts.
Here are a few factors why students are not getting their Return of Investment after attending an elite private institution:
Cost of attendance
The cost of attending an elite school has been steadily increasing over the years, with some colleges costing up to $90,000 a year. While some students are able to lessen the cost with federal and institutional aid, there are some families who end up facing a bill of more than $350,000 for four years.
Higher earnings are not high enough
College graduates have a greater chance in getting higher paying jobs. However, according to an analysis by the Center on Education and the Workforce in Georgetown University , a degree from these private institutions is worth about $135,000 compared to the $265,500 for Ivy Leagues. Students from these institutions may also have greater student debt, suggesting that these options may not be as attractive as once believed.
Mercurial job market
The uncertainties in the job market make it difficult for people to fully understand the best degree to go for as well. Burning Glass Institute and Strada Education Foundation discovered that in February 2024, nearly half of all college graduates end up working in jobs that do not require a college degree. Some even remain underemployed (working in a job that does not fully utilise their skills or knowledge) a decade after graduation, unable to strengthen their financial footing despite their degree.
Selecting the wrong major
Students are forced to make a decision on their major early, and often state that their choices are less informed. STEM majors are commonly associated with job security and high wages, but the competitive job market shows that graduates in life sciences reported higher underemployment. Some students pursuing a major in STEM also realise they were picking degrees based on its potential, versus their own interests, putting them at risk of dropping out or pursuing a career not involving their major due to lack of passion.
Lack of accurate information
When applying for universities and colleges, students and parents often find it difficult to obtain accurate information that also considers the student’s strengths and interests. This means that students may remain unaware of the potential career opportunities in a major, or subjects they should focus on during secondary school or pre-university. The differences between institutions can also mean that the same degree can cover vastly different topics – students should be able to access and understand this information before making a decision on where to study.
Hence it is usually recommended that they speak to an education consultant prior to picking a degree. We at PrepWorks aim to provide accurate information and offer first-hand insights in your education pathway. Whether you need help with choosing your IGCSE subjects, are unsure on what you can do to boost your university application profile, or need help with your entrance examination, our experts are ready to guide you towards achieving your dream. Check out our latest statistics for 2024. Book a consultation with us today.
