Updated: The value proposition of college & student loan debt:
Bottom Line: Updated information but a similar story with regard to the value proposition of a college education. The latest data comes from the New York Federal Reserve. Here are a couple of relevant stats:
- Home ownership rates are better by the age of 33 for those with a college degree
- Graduating college debt is averaging $34,000
So it's first worth noting that the $34,000 in debt isn't insignificant but is likely smaller than many believe going into the college consideration process. Given the $1 million+ in average additional earnings by a college grad over the course of one's lifetime it's an easy value proposition in the grand scheme of things. What's notable and new information within this report is the home ownership information.
Despite often starting a career later than those who don't attain a college degree, and the student loan debt often attained, home ownership rates are 55% by college grads by the age of 33 - compared to 52% for those who don't have a degree. Given that 90%+ of one's net worth is related to home equity - we see that by the age of 33 the benefits of the college degree have already swung in favor of the degree.