A new study finds that buying a partial college education may be worth the price, and those who only complete part of their college education can potentially earn $100,000 more within their lifetime then individuals who just receive a high school diploma, reports Justin Pope from the Associated Press. Individuals who complete their degree get a better return on their college investment, but a partial college education includes a better return typically than bonds and stocks.
\’\’It is vastly easier to get a college degree,\’\’ said Adam Looney, policy director in the Hamilton Project, the Washington, D.C.-based think tank that authored the report. \’\’But I believe the evidence says that fears of quitting, that there are big downside risks to giving it a go and not finishing it, I think those are overblown. For people who are interested in college, who\’ve ambitions of going and have the ability and qualifications to achieve success, I think evidence suggests this is an extremely good deal at this time.\’\’
This is particularly relevant since approximately half of college students take a loan to pay for the amount. Two-thirds of 2011 college graduates had a typical debt of $26,600, based on the Project on Student Debt.
According to some report by Education Sector, as of 2009 the proportion of borrowers who did not complete their degree is continuing to grow 29%. Those borrowers had a much higher default rate on their own student loans, with 17% defaulting versus 4% of borrowers who completed their degree — a statistic affected by borrowers who completed their bachelor\’s degree making typically $32,000 more than those who didn\’t.
But benefits, albeit lesser, still accrue for those who do not finish. A recent report shows that those who partially completed a degree earn $8,000 a lot more than those who only receive a high school diploma.
The report also highlights that the national unemployment rate for those with some college or an associate\’s degree was 6.5%, which is below the national average of seven.6% of people over 25.
Looney said the report reflects a well-established literature that even small increments of additional education repay. The Hamilton Project report calculated the average annual investment return on the partial college education at 9.1 percent annually. That\’s well below the return in excess of 15 percent annually on the bachelor\’s degree, but better than the historical average of conventional investments including stocks, gold and housing.
\’\’From a broad perspective it\’s never been a much better time to purchase education since the labor market is just screaming out for those skills and credentials,\’\’ Looney said.