When College Might Not Be Worth It: A Cost-Benefit Analysis

A recent study by the Federal Reserve Bank of New York reveals that while a college degree typically yields a healthy 12-13% return on investment, this isn't true for everyone. Factors such as high tuition costs, extended graduation timelines, and major choice significantly impact the return. The study analyzes various scenarios, including high living expenses, lack of financial aid, and extended schooling, all of which reduce the return. Furthermore, at least a quarter of graduates don't see sufficient economic benefits from college, and major choice heavily influences income, with STEM fields generally outperforming humanities.