Despite the fact that most parents in California hope their children can attend college, the rising tuition fees and cost of living have led them to question whether a college education can truly bring a better future for their children. However, a recent report shows that a college degree still offers significant advantages in terms of income, job stability, and career development.
The Public Policy Institute of California (PPIC) released a report in April titled “Is College Worth It?” which revealed that 71% of California parents wish for their children to at least obtain a bachelor’s degree.
The report, citing research conclusions, indicates that in California, workers with a bachelor’s degree have a median annual salary of about $96,000, which is twice that of high school graduates.
Among workers with only a high school diploma, only about 12% earn $96,000 or more annually.
Furthermore, even college graduates in the lowest quartile of income still earn more than half of high school graduates.
The study found that the salary advantage brought by a college degree gradually expands throughout one’s career. Among the 22 to 27-year-old age group, college graduates earn approximately 69% more than high school graduates, while in the 45 to 54-year-old age group, this figure increases to around 120%.
The report points out that although some graduates may face challenges when entering the workforce, the majority eventually secure professional positions, gaining more opportunities for on-the-job learning and salary growth. Approximately 78% of college graduates see a positive return on their investment within 10 years, and in the long term, nearly all college graduates experience this.
In addition to salary benefits, college graduates are also more competitive in the job market, with higher labor force participation rates, lower unemployment rates, and increased chances of obtaining full-time employment.
Moreover, they are more likely to receive benefits such as paid leave, health insurance, and retirement plans, leading to overall higher economic security.
The report notes that while tuition fees continue to rise, most students end up paying significantly less than the sticker price after receiving financial aid.
For example, in 2023, the average actual tuition paid by California State University (CSU) students was about $10,100 (70% lower than the sticker price), and for University of California (UC) students, it was approximately $15,700 (59% lower than the sticker price). Adjusted for inflation, the actual burden on students in the two major public systems decreased by about 20% compared to 2015.
On the other hand, actual tuition expenses for private university students are much higher, with non-profit private universities at $36,700 and for-profit private universities at $34,200.
It is worth noting that the main factors driving up costs are not tuition fees but rather food and housing expenses. The report reveals that the non-tuition costs for all students are increasing, especially at public universities with lower tuition fees, where non-tuition costs account for a significant portion.
At the University of California, non-tuition costs for non-residential students living off-campus account for approximately 62% of total expenditures, with food and housing expenses comprising 41% of total expenses; at California State University, non-tuition costs represent a higher proportion of 76% of total expenses, with food and housing costs making up 56% of total expenses.
The report shows that for the 2023-2024 academic year, only about 27% of students in California’s four-year colleges required loans, which is lower than the national average of 41%.
Among UC and CSU students, about a quarter applied for loans. In contrast, the percentage of students borrowing at private non-profit four-year universities slightly exceeded 43%, and at for-profit four-year universities, the percentage of students with loans exceeded two-thirds.
Furthermore, the loan default and delinquency rates for public university students are significantly lower than those for for-profit universities.
Students who do not complete their degrees cannot achieve the same salary growth as college graduates. For those who took out loans for college, the economic losses are even more severe. Research shows that three years after leaving college, 22% of non-graduates defaulted on or were delinquent in their loans, while among graduates, this figure was only 8%.
Moreover, students who take more than four years to complete their degrees face additional educational costs, may lose eligibility for financial aid, and further delay their entry into the workforce.
Significant differences in salary benefits are observed among different professional degrees.
For example, in 2024, the median annual salary of computer science graduates was $130,000, which is double that of education graduates at $65,000.
Even within the same profession, there are considerable income disparities. For instance, within the business field, the highest-earning graduate had an annual salary of $150,000, while the lowest-earning had an annual salary of $60,000.
However, the report notes that as work experience accumulates or through further education, the income gap between disciplines generally tends to narrow. Additionally, with the development of artificial intelligence, there may be an increased demand for talents with critical thinking and communication skills.
In conclusion, the report emphasizes that while higher education does not guarantee financial success, it still remains one of the best pathways to economic prosperity for the vast majority of students. Future policies should focus on improving the accessibility and completion rates of higher education to ensure that more students can benefit from it.