Tuition Costs And Zillionaire Dropouts Essay
1678 Words Nov 21st, 2016 7 Pages
The Federal Reserve Bank of New York estimates that a bachelor of arts degree typically increases a student’s earning capacity by about $300,000 (in today’s dollars) over his or her working life.
That is simply an average. But as with just about any other investment, results aren’t guaranteed. Much depends on the student, of course, but colleges also vary widely in their outcomes. An analysis by the salary comparison site PayScale. com found that the alumni of some poor-performing private and public colleges earned so little that they would have done better, financially speaking, by skipping college and putting their tuition money in a no-interest checking account. On the other hand, some lowcost, high-quality colleges gave students an earnings boost equal to annual double-digit returns on the money they invested in tuition.
No wonder the college selection process has become fraught with anxiety for students and parents both. Picking the right school can offer a student a lifelong boost. Picking the wrong one can waste hundreds of thousands of dollars in family resources.
So how can financial planners help their clients make the right college investment? By applying the same rigorous analysis you’d use with any other investment—adapted for the unique aspects of education.
Money magazine spent months interviewing experts…