College Degree Returns Five Times More Than Any Other Investment
Wondering if it is still profitable to invest the thousands of dollars needed to obtain a college degree in these days of unemployment? Absolutely. Or so says new report.
According to the report, investment in college education returns on average five times more than investments in stocks, corporate bonds, gold, long-term government bonds or home ownership.
Economists Michael Greenstone and Adam Looney in their report published by the Hamilton Project at the Brookings think tank say that “higher education is a much better investment than almost any other alternative, even for the “Class of the Great Recession” (young adults ages 23-24). In today’s tough labor market, a college degree dramatically boosts the odds of finding a job and making more money.”
15% Return on Investment from College Education
College education yeild higher return than any other investment
The report continues that, on average, an investment in a bachelor degree will return an equivalent of 15.2% every year compared to other investments. ” This is more than double the average return to stock market investments since 1950, and more than five times the returns to corporate bonds, gold, long-term government bonds, or home ownership. From any investment perspective, college is a great deal.”
The report continues that even in this bad economy, a student loan or a college education is still the best investment out there. ” The $102,000 investment in a four-year college yields a rate of return more than double the average return over the last 60 years experienced in the stock market (6.8 percent), and more than five times the return to investments in corporate bonds (2.9 percent), gold (2.3 percent), long-term government bonds (2.2 percent), or housing (0.4 percent).”