Is College Still Worth It? An In-Depth Look at the Alternatives

For the last 375 years since Harvard was founded, college has been almost universally considered the best choice for a bright future. However, the last 30-40 years have seen the price of college education skyrocket, creating massive student loan debt and leading many to question its value. Enrollment in America's universities has significantly declined post-2000 compared to the previous two decades. Is college still the golden ticket to a successful future, or are there viable alternatives worth considering? Here’s a comprehensive analysis of the pros and cons of college versus trade school.

The Methodology

Our analysis compared the costs and benefits of trade school and college using several assumptions:

• Average “all-inclusive” costs of private for-profit trade schools and public, in-state colleges.
• Average expected starting salaries for all college degrees and trades.
• A 3% annual wage increase for both.
• A market-average return of 10% for savings invested.
• Savings rate of 7.9% for both, assuming all savings go towards paying off debt first.

Trade School vs. College: Which Has a Better ROI?

If we look solely at starting salary and lifetime earning potential, college seems to be the better choice. However, trade schools offer several benefits that are often overlooked:

• Quicker Entry to the Workforce: Trade school graduates start earning and saving sooner, with less debt and a shorter education timeline. This allows for early investments in life events like purchasing a house or starting a family.
• Higher ROI: Trade school grads can expect to earn 22 times their education investment, compared to 15 times for college graduates.

The Costs of Education

The cost of education varies significantly between trade schools and colleges:

• The most expensive 2-year trade program costs just 36% of the cheapest 4-year university degree.
• Trade school graduates typically have a third of the debt compared to their college counterparts.

Starting Salaries and Employment Opportunities

Earnings post-graduation depend heavily on the chosen trade or degree. Some trades, like HVAC technicians, can earn more than $50/hr, while others may pay less. Similarly, some college degrees lead to high-paying jobs immediately, while others do not.

According to Abrigo, six of the top ten fastest-growing U.S. industries in 2019 were part of the construction industry, employing skilled trade workers extensively. The Bureau of Labor Statistics found that construction managers, the most lucrative trade job, had a top earning potential of over $77/hr, significantly more than the top college major, computer science, which offers an average starting salary of $33.65/hr.

Pros and Cons of College

Pros:

• Comprehensive Education: College provides a broad education, critical thinking skills, and exposure to various subjects, enhancing intellectual growth and cultural awareness.
• Higher Earning Potential: Despite the high costs, college degrees can lead to significantly higher lifetime earnings, especially in high-paying industries like tech and finance.
• Networking Opportunities: College offers numerous opportunities to meet people from diverse backgrounds, fostering valuable connections.

Cons:

• High Costs and Debt: College education comes with a hefty price tag. A bachelor’s degree in the U.S. costs around $127,000 on average, leading many to incur substantial debt.
• Dropout Rates: Approximately 40% of students enrolled in four-year college programs drop out, and 64% of those who do graduate take more than four years, increasing costs and delaying workforce entry.
• Uncertain Job Market: The job market for college graduates has been challenging, with high unemployment and underemployment rates for recent graduates.

Trade School: A Savvy Alternative

What is a Trade School?

Trade schools, also known as vocational schools, offer specialized training in practical skills, often leading to high-demand jobs such as electricians, mechanics, and HVAC specialists.

Pros:

• Lower Costs and Shorter Timelines: Trade schools cost significantly less than colleges, averaging around $33,000 for a degree, and programs typically last two years or less.
• Job Security and High Demand: Many trade jobs are difficult to outsource and are in high demand, ensuring job stability.
• Competitive Salaries: Trade school graduates can earn salaries comparable to those with bachelor’s degrees, with some trades offering very high wages, especially in certain regions.

Conclusion: Considering the Road Less Traveled

While a four-year degree can open doors and lead to higher lifetime earnings, trade schools present a viable alternative for those who prefer hands-on learning, want to avoid high costs and debt, and wish to enter the workforce quickly. As you approach high school graduation or support someone making this decision, consider the wide range of opportunities trade schools offer. Assess your personal learning styles and career aspirations to make an informed choice. Sometimes, choosing the less conventional path can lead to extraordinary journeys.

For further reading, here are some useful resources:

• Pew Research on College Education
• Economic Policy Institute
• Bureau of Labor Statistics
• National Center for Educational Statistics

‍