Codie Sanchez argues college no longer makes financial sense. In the 1960s-80s, tuition and starting salary were roughly equal at $40-45k. Today, tuition costs $142,000 while graduates earn $55k, and only 49% of Americans think college is worth it.
Questions this video answers
49%
$40,000–$45,000
$40,000–$45,000
$55,000
$142,000
Chapters
Only 49% of Americans still think university is worth it. And the reason why might actually surprise you. It's called relative value. As it turns out, we're smarter than the universities. So if you see it here on this graph, in the 60s, 70s and 80s, college room plus board cost you about 40 to 45k. But when you graduated, you earn about 40 to 45k a year. Today the average earnings for a four year college graduate is 55k. Here's the issue. The average tuition and board cost for a four year university is $142,000. So while cost of universities have gone up a hundred thousand dollars, the benefits have only gone up $10,000. The relative value has gone way down as the cost has gone up. No wonder enrollment is at all time lows.