A report released by the Strada Education Foundation in the United States on Thursday shows promising data that 70% of recent graduates from public universities across America can expect a positive return within ten years. This means their income over the span of a decade will surpass that of high school graduates, and the excess amount will be enough to offset the cost of university tuition.
Numerous studies indicate that, on average and in the long term, a bachelor’s degree still holds investment value.
However, an increasing number of individuals are realizing that not all degrees lead to lucrative salaries. Even some seemingly secure degrees are facing a rising risk, as recent American university graduates are navigating one of the most challenging job markets in years.
Preston Cooper, a researcher on university return on investment at the American Enterprise Institute, a conservative think tank, pointed out that students are becoming increasingly aware that a college education may not necessarily bring returns, making it a primary consideration for today’s universities, a trend that might not have been prevalent fifteen or twenty years ago.
Recently, a group of university presidents gathered at the Gallup headquarters in Washington for a colloquium on higher education and public opinion surveys. Kevin Guskiewicz, the president of Michigan State University, highlighted that a significant reason for the decline in public confidence is the perception that universities are failing to equip graduates with the skills employers require.
Collaborative research between The Burning Glass Institute and the Strada Education Foundation last year found that 52% of recent university graduates were employed in positions that did not necessitate a degree. Even in fields with high demand such as education and nursing, a significant number of graduates are facing similar circumstances.
Matt Sigelman, the CEO of The Burning Glass Institute, noted that for years, American universities have struggled with bridging the gap between their offerings and the job market.
Education Secretary Linda McMahon has also raised questions about the necessity of a four-year degree. In a speech at the Reagan Institute in September, she praised training programs that enable students to enter the workforce directly after high school.
She emphasized, “I’m not saying that kids shouldn’t go to college, I’m just saying that not all kids have to go to college to be successful.”
Against the backdrop of increasingly challenging job prospects, a series of new ranking systems are evaluating the “return on investment” (ROI) of tuition costs and graduates’ income.
States like Colorado have begun releasing annual reports on university economic returns, while Texas has incorporated this indicator into the calculation criteria for community college tax allocations.
The Republican budget reconciliation bill passed this year takes a more comprehensive approach, mandating that most colleges meet a certain income standard to qualify for federal aid, with the core goal of ensuring that university graduates ultimately earn more than those without a degree.
In recent years, to lower tuition costs, many campuses have kept tuition fees stable, with private universities even reducing sticker prices to better reflect the actual payments of most students after financial aid.
Since taking office last year, promoting graduates’ employment has been a top priority for Kevin Guskiewicz, the president of Michigan State University. He has convened a committee comprising Michigan business leaders from various sectors such as agriculture and banking to clarify the skills graduates need for employment, align degree programs with market demands, and advocate for internships and work opportunities that can lead to career advancement.
Some believe that enhancing transparency is crucial.
For decades, students have had little information on whether specific degree programs lead to quality jobs post-graduation. This situation began to change when the Department of Education launched the College Scorecard website in 2015, providing aggregate income data for various university programs.
In recent years, bipartisan efforts in the U.S. Congress aim to provide the public with more detailed information.
In 2023, North Carolina legislators conducted a study on the financial return on investment of degrees from public universities in the state. The investigation found that 93% of degrees yielded a positive return, meaning graduates could expect a lifetime income higher than those without comparable qualifications.
Public data shows that at the University of North Carolina at Chapel Hill, bachelor’s degrees in applied mathematics and business generally had high returns, whereas master’s degrees in psychology and foreign languages often had lower returns.
Lee Roberts, the chancellor of the University of North Carolina at Chapel Hill, mentioned in an interview that universities have only recently recognized the importance of such data for students and their families.
He added, “In an era full of variables, students are more concerned about their career prospects, which is only natural. Universities indeed have a responsibility to provide this data to students and their families.”
(This article referenced reporting from the Associated Press)