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Shushanth Gunukula
Mr. Paul Eckert
Independent Research GT
7 March 2016
College Education: The First Financial Turning Point
Many people are unaware of the clear financial impacts that directly stem from choosing to
pursue college or not. The decision of whether or not to go to college is very important because
of creating a life-changing financial impact. Almost anyone who is successful and earns a well
paying salary has attended college for a minimum of four years. Therefore it is important to
understand how beneficial and necessary college is in getting a well paying job. As research
clearly shows, attending college is very beneficial in the long term but forgoing it is beneficial in
the short term. College provides a higher median salary, higher chance of being employed, a
more successful life while choosing not to attend college will avoid the great burden of student
debt and an unnecessary degree while working in a low level job. The important decision that
students make to attend college will impact their entire financial life.
Many people pursue higher education in an ambition to work a well paying job so they
can be financially secure for their life. It is well known that college students face thousands of
dollars in debt. However, after paying off the debts, college graduates are more financially secure
than individuals who did not pursue higher education. College students have their salary increase
at a much faster rate than their counterparts and have many employment benefits in addition to
their salary such as better employment benefits. The financial success of college graduates is

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much better than that of a person who did not attend college which makes many individuals
pursue higher education.
One of the major benefits of attending college is higher salary over an individuals life
time. Even though many people who attend college face thousands of dollars in debt they break
even with high school graduates who work in approximately twenty years after college
(Alexander). The average student loan debt is reaching $30,000 for individuals graduating from
college (Bidwell). However, workers with a bachelors degree are making more than a million
dollars more in their lifetime than someone with only a high school diploma (Carey). Those
with bachelor's degrees, no matter the field, earn vastly more than counterparts with some
college or a high school diploma, indicating that no matter the level of attainment or the field of
study, simply earning a four-year degree is often integral to financial success later in life
(Brewer). As a result, many people attend college in their drive for higher salary in the future.

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(M
arcus)
Also, even though workers that choose not to attend college receive more years of
employment in the beginning of their career and thus have a higher salary than initial college
graduates, college graduates receive more money in the long-term. This is because as workers
age, earnings rise more rapidly for the ones with advanced degrees (Gunderson). College
graduates have their salaries increase at a faster rate because their degrees are more demanding
for companies than high school diplomas (Lu). This leads to more financial success in the long
term if an individual attends college while it is a detriment in the short term.
A college degree also adds more financial security in the long-term. It provides more
Social Security retirement benefits due to a higher overall lifetime income compared to someone
with only a high school diploma (Brewer). Social security funds help individuals during
retirement which shows how important a college degree is financially for a long time. A college

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degree also provides better Medicare because many companies require employees with college
degrees and these companies are large which decreases the Medicare per person (Carlson). Many
others benefits are also provided to employees who have college degrees because they are more
coveted than a high school diploma. These benefits include medical, investment, and vacation
bonuses.
Another benefit of attending college is having a higher chance of getting employed.
Every year thousands of people apply for a job however there is only a certain amount of jobs
available. A college degree increases the chance an individual is accepted into a job. This is due
to the connections students can make while they are in college to gain an easier acceptance into
their job, more companies requiring individuals with college degrees and individuals with only a
high school diploma proving to be expendable. As a result, many students choose to attend
college because of higher job security in the future.
Connections that are made while an individual is in college would prove to be very
beneficial for the future. Connections in college can be made through friends and professors who
would give a recommendation for an individual to get a specific job (Reeves). In contrast,
someone with only a high school diploma would not have the advantage of getting a
recommendation for a job immediately out of high school. This makes it more challenging for
someone to receive a job right after high school because they don't have many credentials other
than a high school diploma to rely on in a competitive job market.
Since individuals with only a high school diploma are the most expendable, they are the
first ones let off during an economic recession (Whiteside). Since many people without a college

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degree complete low level work they are fired first to limit the loss in production. In the most
recent case, during the economic recession of 2008, thousands of people with high school
diplomas were fired or their salary was greatly reduced (Yates). As a result, a college degree
helps keep a job secure during difficult economic times.

Individuals with college degrees are also more likely to remain with their current jobs and
not be in hunt for a new job often. Many companies require their employees to have a college
degree and fill up their low level jobs with individuals with high school diplomas (Whiteside).
This means that the people without a college degree are expendable because they can easily be
replaced every year with new individuals with only high school diplomas. A research study also
shows, The unemployment rate for workers with a bachelors degree was 4.9 percent, about half
of the rate for people with only a high school diploma (Haltom). Thus, proving that a college
degree increases job security.
As a result, a greater increase in job security is one of the most important financial
benefits of attending college. By making sure your job is secure, a constant source of income is
dependable that will set someone financially secure for their life without worrying about losing
their job unless they are in a very unfortunate circumstance. A college degree is much more
helpful than a high school diploma in maintaining a job that is secure and resourceful.
Thousands of people graduate from college every year. Due to the large amount of people
receiving a college degree every year, many people who decided to go to college have the same
job as that of someone who choose not to attend college due to the competition in the job market.
Many individuals with college degrees are working in low level jobs that never required a

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college degree, making their degree very unnecessary. This clearly shows that many people
choose not to attend college every year because they are not guaranteed a high paying job
immediately after receiving a college degree.
Every year there are more people graduating from college with a degree than the amount
of high level job openings. Thus, many people with college degrees are forced to work in a low
level job that does not require their degree or credentials. As a result, the financial status of
someone who chose to attend college is worse than someone who chose to work immediately
after high school because they are making the same salary and the college student also has less
years of employment and thousands of dollars in debt. A college degree used to guarantee a wellpaying job and higher earnings than high school graduates. However, fewer of these jobs are
available due to effects of the Great Recession and economic changes. The main reason for this
problem is that the number of people who hold college degrees have grown more quickly than
the numbers of jobs that require advanced education. At the end of the twentieth century, the tech
boom led to more jobs for college graduates. However after the tech boom phase, the economy
had an oversupply of college graduates which led to a college degree being worth less than it
once had. Research studies clearly show how the value of a college degree has decreased, In
1970, only 2% of firefighters had college degrees; now 18% do, according to Richard Vedder, an
economist at Ohio University. Less than 1% of taxi drivers had a college degree in 1970; now
15% do (Semeuls). The decreasing value of a college degree in the job market has also forced
many people to reconsider their decision to attend college.

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(Bidwell)
Individuals also choose not to attend college because they are not guaranteed a high
paying job as a result of their college degree anymore. As more college graduates get a degree
every year, employers offer fewer wage because many college graduates are competing for
minimal jobs. The dilemma many students face is If they go to college, they still might not get a
job that requires a college degree, and they'll be on the hook for big student loan payments. But
if they don't go to college, they might be pushed out of entry-level jobs by overqualified college
graduates who can't find other work (Semeuls). The demand for technical jobs typically held by
college students reversed around 2000 (Haltom). Soon after 2000, many college graduates
worked manual jobs typically held by people with only a high school education. This sudden
change due to the end of the tech boom led to decreased pay for college graduates, making it
harder for them to receive a high salary job after college (Haltom) Thus, many people decided

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not to pursue higher education because of the uncertainty of a college degree guaranteeing them
a high salary job.
Another reason many people chose not to attend college is because of the large amounts
of student debt that would be incurred from attending college. Even though many colleges and
universities decrease the amount of tuition by offering financial aid which is economic assistance
to help pay for college; many students face thousands of dollars of debt immediately after
graduating from college. This large amount of debt hinders people from making important
economic decisions for many years and places individuals in debt even before they start working.
The rising costs of tuition every year increases this problem as many individuals are forced to
forgo college even if they wanted to attend or preferring to work after high school instead of
being stuck with thousands of dollars of debt.

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(Bidwell)

The high cost of tuition is increasing exponentially every year, making it harder to pay
for college after every passing year. Studies have shown that college tuition has increased more
rapidly than many things including Medicare, insurance, and food (Marcus). Even after adjusting
for inflation, students are paying more than triple what students paid 30 years ago to attend a
public, four-year institution (Marcus). Receiving a college degree is getting more expensive
every year even though the benefits remain the same. The barrier of paying for college has
restricted many people from attending college, and thus preventing them from facing large
amounts of debt. Since the average cost of tuition for a 4-year college is approximately $20,000
a year with costs rising every single year, students face tens of thousands of dollars of debt
immediately after they graduate from college (Haltom). The large amounts of debt restrict
individuals from making important economic decisions such as purchasing a home for many
years, until they pay off their student debts.
The expansive tuition from college leaves students in debt before they start their working
career. Every year individuals are in a deeper financial hole immediately after college as they
face large amounts of debt. A research study shows, In its ninth annual report on student loan
debt, TICAS found nearly 7 in 10 graduating seniors in 2013 69 percent left school with an
average of $28,400 in student loan debt, an increase of 2 percent from 2012 (Bidwell). The
increase from previous years shows how the value of a college degree is going down because it
is getting more expensive. Even though colleges provide financial aid to help students with

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paying the high tuition, the tuition is still very high for many students (Bidwell). Also financial
aid only helps the students from financially struggling families and not everybody, leaving many
students with no aid at all (Brewer). As a result, many individuals start working after high school
so they dont have to be in financial debt before they start their working career.
There are various benefits that provide reasons for someone to either choosing to attend
college or not attend college. The main factors that lead to a benefit for choosing to attend
college is the belief of higher salary and more job opportunities while the main factors that lead
to a benefit for not attending college is immediate pay and not being burdened with student debt.
Research has shown that every year, thousands of students that graduate from college have large
amounts of student debt and are making less money than they expected. However, a lot of
research has also shown that people who attend college make much more money over their
lifetime than people who choose not to attend college. As a result, it is a better choice to attend
college for benefits in the long-term while it is a better choice to forgo college for benefits in the
short-term. Choosing whether to attend college is one of the first big decisions an individual has
to take to succeed in life with varying correct choices for everyone.

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Works Cited
Alexander, Lamar. "College Too Expensive? That's a Myth." Wall Street Journal. 07 Jul. 2015:
A.13. SIRS Issues Researcher. Web. 17 Dec. 2015.
Bidwell, Allie. "Average Student Loan Debt Approaches $30,000." US News. US News, 2014.
Web. 10 Sept. 2015.
Brewer, Dominic, and Patrick McEwan, eds. Economics of Education. N.p.: Elsevier, 2010.
Print.
Butcher, David. "What is a STEM Education Worth?" ThomasNet News. ThomasNet, 2013. Web.
10 Sept. 2015.
Carey, Kevin. "That Old College Lie." Democracy. Winter 2010: 8-20. SIRS Issues Researcher.
Web. 15 Sep. 2015.

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Carlson, Scott. "How To Assess The Real Payoff Of A College Degree." Chronicle Of Higher
Education 59.33 (2013): A26. MasterFILE Premier. Web. 5 Nov. 2015.
Gunderson, Steve. "Making 'Profit' a Dirty Word in Higher Education." Wall Street Journal. 13
Nov. 2014: A.13. SIRS Issues Researcher. Web. 17 Dec. 2015.
Haltom, Renee. "Has College Become a Riskier Investment?." Econ Focus. Third Quarter 2013:
14. SIRS Issues Researcher. Web. 27 Sep. 2015.
Lu, Adrienne. "States Crack Down on For-Profit Colleges, Student Loan Industry." stateline.org.
17 Apr. 2014: n.p. SIRS Issues Researcher. Web. 17 Dec. 2015.
Marcus, Jon, and Holly K. Hacker. "College Costs Rising More Rapidly for Poorer Students,
Analysis Shows." Hechinger Report. 09 Mar. 2014: n.p. SIRS Issues Researcher. Web. 20
Sep. 2015.
Reeves, Richard V. "Free College? It Can't Fix Everything." Los Angeles Times. 13 Jul. 2015:
A.17. SIRS Issues Researcher. Web. 17 Dec. 2015.
Semeuls, Alana. "Degree Not Needed, College Grads Find." Los Angeles Times. 20 Sep. 2013:
B.1. SIRS Issues Researcher. Web. 20 Oct. 2015.

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