ARGH, I’m seeing so much misinformation going around in twitter because of student loan forgiveness. It’s driving me crazy.
Myth: The value of a college degree is not worth it.
Reality (based on recent work of David Autor, but also many many other people): Even with the high costs of a degree and student loans, the additional earnings make it worth it for most college graduates.
Sub-Reality (I don’t remember a big name on this one, but lots of people are studying it with mixed results): The benefit of going to college and not finishing– we’re not as sure about that. Depending on the loans that you take out, it may not be worth it to spend a couple years in college and then not have a degree (though 2 years at community college with a degree is worth it). And lots of people go to college, take out loans, and don’t finish. That is a problem that lots of people are studying.
Sub-Reality (David Denning and several other papers): Even a degree from a for-profit college usually does result in higher earnings, but you are no better off with a for-profit degree than you would have been with a community college degree (worse given student loans, though the worst offenders have thankfully been addressed in the new Biden thing). They provide the same benefits, it’s just the for-profit degree is stupidly expensive by comparison.
Myth: It is better to go to a low tuition regional school (or community college) than to the best school that you can get into.
Reality (Hoxby and Turner in an amazing RCT, and other papers that are not experiments but use clever regression discontinuity designs): Schools with better endowments 1. Give more and better financial aid, meaning that for poor kids who can get into them, a state flagship or a highly endowed private prestige school will cost less. And 2. More prestigious schools do a better job of retaining low income kids– this seems to be through a variety of methods– better financial aid means working fewer hours, but also they just have a lot more resources devoted to keeping low SES kids, offices, sometimes mentorship programs, short-term loans etc. That means for low income kids, the more prestigious school means that they’re more likely to actually *graduate.* And, we also know among graduates (through a lot of different papers, though no RCT to my knowledge), prestigious schools help low SES kids make more money as grownups than do less prestigious schools.
Sub-Reality: For middle/upper middle/rich class kids, it doesn’t matter. They just need a degree. (And the rich probably don’t need a degree.)
Myth: The skyrocketing cost of college is caused by financial aid accessibility.
Reality: The skyrocketing cost of college is caused by decreased federal and especially state investment in state schools. (And to a much smaller extent: better quality education, gambling on fancy sports programs that don’t pay out, fancy dorms at private schools, etc. But this is like nothing compared to the effect of how much the government has stopped subsidizing higher education.)
And some stupid Republican propaganda:
Myth: Non-college training is free.
Reality: Truck driving requires CDL training. Hairdressing requires training. Nursing requires training. Plumbing requires a TON of training. So many professions that don’t require a college degree still require technical training which still costs money.
Myth: Working class people don’t have student loans
Reality: A lot of people drop out of college and have student loans. A lot of people get student loans to pay for technical training. Plenty of working class people have student loans.
It still boggles my mind that only 30-35% of US adults have college degrees. But a big percent start but then drop out without an additional degree. (You can get exact numbers from http://www.ipums.org)