BostInno's State of Innovation is a month-long feature on mobile, marketing, retail and e-commerce, and higher education innovation in Boston. #BSOI will include research reports, indexes, and more exclusive content for Channel members and the State of Innovation Forum on June 27th. Contact us to learn more.
The cost of college is on the rise here in the Hub. Although this year's hikes were the lowest in recent history, students are still being forced to question whether or not their degree is worth the paper it’s printed on.
As part of our State of Innovation series, however, we surveyed hundreds of readers to discover what kind of degree they are carrying, if one at all, and whether or not it was helpful when trying to get hired.
Sixty percent of respondents claimed to have received an undergraduate degree, and when asked how beneficial it turned out to be, the costly credential received rave reviews. Thirty-six percent of those surveyed said their degree was “extremely helpful” in getting hired, while an additional 28 percent pegged it “helpful.” A mere 10 percent claimed it was not helpful at all, but the predominantly positive statistics were not startling.
A fairly recent study from the Lumina Foundation and Georgetown University highlighted that jobs requiring bachelor’s degrees have increased by 2.2 million since the recession began in 2007. What’s more, although the unemployment rate for recent graduates still hovers around 7.9 percent, the unemployment rate for recent graduates attempting to work with only a high school diploma was last 24 percent, meaning an undergraduate degree should not be undervalued.
Yet, despite the data, students are still making the decision to drop out—but at a steep price. A separate Georgetown study states college graduates earn 84 percent more over their lifetimes than those without a degree, bringing the long-term worth of a bachelor’s degree to $2.8 million. On a national level, dropouts also cost the nation $4.5 billion in lost income, according to the American Institutes for Research.
It's the cost of college that continues to be an overwhelming burden, however, especially during a period when interest rates on government-subsidized loans could double on July 1 from 3.4 to 6.8 percent if Congress does not act. To top it off, the country currently owes one trillion dollars in outstanding student loans.
Massachusetts Senator Elizabeth Warren has been rallying local students to speak out against the issue, acknowledging both how useful and unfair obtaining a secondary education can be.
“We cannot, as a country, say it’s critical to get a post-high school education...and then say you’re on your own to get it,” admitted Warren at Northeastern Monday morning.
So, will Congress do their direly-needed part to help? A degree is worth the cost, but the hefty price tag, and its implications, are keeping students away.
To join on the conversation, register for our State of Innovation forum. For a look at the panelists, check out the slideshow below.
