{"id":45826,"date":"2020-06-05T14:39:49","date_gmt":"2020-06-05T19:39:49","guid":{"rendered":"https:\/\/abound.college\/finishcollege\/?post_type=advice&#038;p=45826"},"modified":"2023-05-18T13:21:20","modified_gmt":"2023-05-18T18:21:20","slug":"a-college-education-is-a-solid-investment","status":"publish","type":"advice","link":"https:\/\/abound.college\/finishcollege\/advice\/a-college-education-is-a-solid-investment\/","title":{"rendered":"A College Education is a Solid Investment"},"content":{"rendered":"<aside class=\"green post-intro\"><em>College graduates are better off even with student loans\u00a0<\/em><\/aside>\n<p>Despite the rising cost of higher education and what many reports would have us believe, investing in a college education remains a solid, profitable investment.<\/p>\n<p>Students who take out loans to pay for college have debt to repay when they graduate, so their concerns about the cost of a college education are understandable. However, these students have still made a smart financial decision because not all debt is the same \u2013 there is good debt and bad debt.<\/p>\n<h2>Bad Debt vs. Good Debt<\/h2>\n<p><a href=\"https:\/\/www.bankrate.com\/personal-finance\/debt\/good-debt-vs-bad-debt\/\">An article published by Bankrate.com<\/a>,\u00a0<em>Good Debt vs. Bad Debt<\/em>, describes the difference between good debt and bad debt. In short, bad debt costs the investor money, while good debt results in a profit.<\/p>\n<p>Bad debt, for example, is paying interest on credit card balances that are not paid in full, or borrowing money to pay for travel or new clothes \u2013 there is no financial gain for any of these expenses. \u201cIf it has no potential to increase in value, that\u2019s bad debt,\u201d explains David Bach, CEO of Finish Rich Inc., and author of \u201cThe Finish Rich Workbook.\u201d<\/p>\n<p><a href=\"https:\/\/abound.college\/finishcollege\/advice\/financial-aid-adult-students\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-45846 size-full\" src=\"https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/Financial-Aid-Funds-for-Adult-Students.png\" alt=\"Financial Aid: Funds for Adult Students\" width=\"2480\" height=\"520\" srcset=\"https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/Financial-Aid-Funds-for-Adult-Students.png 2480w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/Financial-Aid-Funds-for-Adult-Students-300x63.png 300w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/Financial-Aid-Funds-for-Adult-Students-1024x215.png 1024w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/Financial-Aid-Funds-for-Adult-Students-768x161.png 768w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/Financial-Aid-Funds-for-Adult-Students-1536x322.png 1536w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/Financial-Aid-Funds-for-Adult-Students-2048x429.png 2048w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/Financial-Aid-Funds-for-Adult-Students-610x128.png 610w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/Financial-Aid-Funds-for-Adult-Students-720x151.png 720w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/Financial-Aid-Funds-for-Adult-Students-360x75.png 360w\" sizes=\"auto, (max-width: 2480px) 100vw, 2480px\" \/><\/a><\/p>\n<p>Taking out loans to pay for a college education falls on the opposite end of the investment spectrum. \u201cGood debt is investment debt that creates value; for example, student loans, real estate loans, home mortgages and business loans,\u201d says Eric Gelb, CEO of Gateway Financial Advisors and author of \u201cGetting Started in Asset Allocation.\u201d Investing in a college education is the perfect example of good debt, consistently proving to be one of the most profitable investments available.<\/p>\n<p>A college degree improves the borrower\u2019s long-term financial situation because the value of this education appreciates over time and, in the end, is worth more than the loan. On average, college graduates earn more money and find jobs more quickly than those who only have a high school diploma, with the earning gap between high school and college graduates widening in the past few years.<\/p>\n<h2>Better Pay<\/h2>\n<p>According to a\u00a0<a href=\"https:\/\/www.pewresearch.org\/social-trends\/2014\/02\/11\/the-rising-cost-of-not-going-to-college\/\">Pew Research Center report<\/a>, on average, today\u2019s college graduates, ages 25-32, working full time earn nearly $17,500 more per year than their peers who have only a high school diploma. Over the course of a lifetime, this adds up to a staggering difference in earning potential. This is further evidenced by the\u00a0<a href=\"https:\/\/cew.georgetown.edu\/cew-reports\/the-college-payoff\/\">Georgetown University Center on Education and Workforce\u2019s 2011 report<\/a>\u00a0that suggests individuals with a bachelor\u2019s degree make 84% more than those with only a high school diploma. According to the report,\u00a0<em>The College Payoff: Education, Occupations, Lifetime Earnings<\/em>, \u201cover a lifetime, a bachelor\u2019s degree is worth $2.8 million on average.\u201d<\/p>\n<h2>Higher Employment Rates<\/h2>\n<p>The same Pew Research Center report referenced earlier shows that people who only have a high school degree have a 12.2% chance of being unemployed, a significantly higher rate than college graduates who have a 3.8% chance of being unemployed.<\/p>\n<h2>Return on Investment<\/h2>\n<p>Return on investment in a college education outperforms most other investment options.\u00a0<a href=\"https:\/\/www.hamiltonproject.org\/publication\/post\/where-is-the-best-place-to-invest-102000-in-stocks-bonds-or-a-college-degree\/\">A paper published by The Hamilton Project<\/a>\u00a0explains that the \u201caverage return on a four-year college degree is more than double the average return on stock market investments made since 1950 and more than five times the returns to corporate bonds, gold, long-term government bonds, or home ownership.\u201d<\/p>\n<p><a href=\"https:\/\/abound.college\/finishcollege\/advice\/what-is-a-non-traditional-student\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-45867 size-full\" src=\"https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/What-is-a-Non-Traditional-Student-1.png\" alt=\"What is a Non-Traditional Student?\" width=\"2480\" height=\"520\" srcset=\"https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/What-is-a-Non-Traditional-Student-1.png 2480w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/What-is-a-Non-Traditional-Student-1-300x63.png 300w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/What-is-a-Non-Traditional-Student-1-1024x215.png 1024w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/What-is-a-Non-Traditional-Student-1-768x161.png 768w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/What-is-a-Non-Traditional-Student-1-1536x322.png 1536w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/What-is-a-Non-Traditional-Student-1-2048x429.png 2048w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/What-is-a-Non-Traditional-Student-1-610x128.png 610w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/What-is-a-Non-Traditional-Student-1-720x151.png 720w, https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/What-is-a-Non-Traditional-Student-1-360x75.png 360w\" sizes=\"auto, (max-width: 2480px) 100vw, 2480px\" \/><\/a><\/p>\n<h2>Go to College; It\u2019s Worth It!<\/h2>\n<p>Going to college gives people a clear advantage in finding employment, staying employed and earning higher pay. A college education also provides students with the skills they need to learn quickly and adapt to new environments, which will benefit them throughout their careers as they change jobs and navigate their professional endeavors. So, even with the intimidating cost of higher education, today\u2019s college student is making one of the best investment decisions of his or her life by choosing to invest in a college education.<\/p>\n<h6><a href=\"https:\/\/abound.college\/privacy-terms\/\">Disclaimer<\/a>: This article contains affiliate links to products and services. We may receive commissions for purchases made through these links.<\/h6>\n","protected":false},"excerpt":{"rendered":"<p>Students who take out loans to pay for college have debt to repay when they graduate, so their concerns about the cost of a college education are understandable. However, these students have still made a smart financial decision because not all debt is the same \u2013 there is good debt and bad debt.<\/p>\n","protected":false},"featured_media":45827,"template":"","class_list":["post-45826","advice","type-advice","status-publish","has-post-thumbnail","hentry","abound_advice_topics-affordability","abound_advice_topics-financial-aid","abound_advice_topics-thinking-about-finishing-college","abound_advice_topics-college-search"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>A College Education is a Solid Investment - Abound: Finish College<\/title>\n<meta name=\"description\" content=\"Despite the rising cost of college and what many reports would have us believe, investing in a college education remains a solid, profitable investment.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/collegesofdistinction.com\/advice\/a-college-education-is-a-solid-investment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A College Education is a Solid Investment\" \/>\n<meta property=\"og:description\" content=\"Despite the rising cost of college and what many reports would have us believe, investing in a college education remains a solid, profitable investment.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/collegesofdistinction.com\/advice\/a-college-education-is-a-solid-investment\/\" \/>\n<meta property=\"og:site_name\" content=\"Abound: Finish College\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AboundDegrees\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-18T18:21:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/abound.college\/finishcollege\/wp-content\/uploads\/sites\/2\/2020\/06\/priscilla-du-preez-ggeZ9oyI-PE-unsplash-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@AboundDegrees\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/abound.college\\\/finishcollege\\\/advice\\\/a-college-education-is-a-solid-investment\\\/\",\"url\":\"https:\\\/\\\/collegesofdistinction.com\\\/advice\\\/a-college-education-is-a-solid-investment\\\/\",\"name\":\"A College Education is a Solid Investment - 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