IS A COLLEGE DEGREE WORTH THE PRICE?

Yes, new state data says, but price and income are tied to field of education

A report from the Colorado Department of Higher Education concludes that earning a post-secondary certificate or degree is worth it, but it also lays out the cost.

Earning a college degree or post-high school training in Colorado not only results in higher wages down the line, but better health outcomes, greater life expectancy and fewer interactions with the criminal justice system, according to a new report by the Colorado Department of Higher Education. The report concludes that earning a post-secondary certificate or degree is worth it, but it also lays out at what cost.

Higher education officials and Colorado legislators hope the inaugural report, to be updated annually, will be a tool students and parents can use to decide which post-secondary education route works best for their family.

About 75% of all jobs in Colorado and 97% of “top ones” — jobs with high growth rates that pay a living wage — require education and training beyond a high school diploma, the report found. However, only 57% of the adult population in Colorado has a college degree or certificate.

“With rising tuition and student debt, the value of college has been called into question,” the report reads. “We know many Colorado families are sitting around the kitchen table today asking, ‘is a post-secondary certification or degree even worth it?’ The data clearly show that yes, it is — as long as students finish what they start.”

Americans with post-high school education are more likely to find jobs and their lifetime earnings are also “significantly higher” compared with those who only complete high school, the report said. The report breaks out median wage earnings for Coloradans over one, five and 10 years after graduation depending on the level of post-secondary education completed.

Some notable statistics from the report include:

• Those who got a certificate earned $50,100 10 years after graduation.

• During the same time frame, associate degree holders made $54,600 and bachelor’s degree recipients brought in $60,400.

• The highest-earning in the bunch were graduates in the STEM field who earned a bachelor’s degree, making $76,054 in median income 10 years after getting their college degree.

• The lowest-earning group of Coloradans with post-secondary education 10 years after graduation were those who studied education, bringing in $24,009.

• Those who studied education were the lowest-earning group 10 years after graduation among certificate earners, associate degree holders and bachelor’s degree recipients, with the latter making $45,152.

Americans with some form of post-secondary education can have median lifetime earnings $1 million higher than those of a high school graduate, the report said.

While the data is clear that college graduates earn more over time — and, oftentimes, find more fulfilling work, said Angie Paccione, executive director of the Colorado Department of Higher Education — the report also addresses the financial and societal barriers keeping some students from nabbing their degree.

“Improving access is vitally important in our advanced economy, which all but requires a certificate or degree to participate,” the report read.

Tuition at public twoyear institutions in Colorado rose by 52% from 2008 to 2018, now costing $4,470 per year on average. At public four-year institutions during the same time frame, tuition climbed 68 percent to an average of $11,130 per year, the report said.

The most dramatic increases came between 2009 and 2012 when the recession caused states to cut higher ed budgets, and universities sought ways to make up the lost revenue. In Colorado, which ranks 47th nationally for postsecondary education state appropriations, funding levels are still 11% below pre-recession funding levels, the report said.

With tuition on the rise, recent reports by the New York Federal Reserve show that student debt is one of the fastest-growing forms of debt across the country. Bucking the trend, Colorado college graduates have seen declining student debt — a fact that excited Paccione and Gov. Jared Polis, who spoke at the report’s announcement at the state Capitol on Tuesday.

Since 2014, students who attended four-year schools saw their student debt decline 5% and those who attended two-year schools had their student debt fall by 10%.

However, the debt burden still weighs on many in the state.

In 2018, two-thirds of bachelor’s degree graduates and half of two-year college graduates collected student loan debt. The average student loan debt for a Colorado bachelor’s degree graduate was about $25,500 in 2018.

“We know going to college or technical school is a weighty decision for students and families,” Polis said. “The robust data shows that it’s worth it. Knowing how much you are likely to earn helps Coloradans choose the right education pathway that harnesses their unique talent and aptitudes. It also helps us hold ourselves accountable as we look to reduce costs and increase the value of higher education.”