Openings for graduate-level jobs have stalled over the past 18 months, while demand for less-skilled workers continues to improve
Should you invest in equities, bonds or property – or a college education?
The start of the university year has brought a new round of angst about whether a US university degree is worth the money, after years of inflation-busting fee increases, mounting student debt and disappointing job prospects for graduates.
Comparing a university degree with an investment in stocks and bonds leaves out great unquantifiable benefits of higher education, but the return on such an expensive outlay is a vital consideration for parents, children and society at large, even if it is often felt instinctively rather than spelt out or calculated.
In the US, where tuition fees have more than tripled in real terms since the 1970s, the student debt burden now sits at $1.2tn. One in seven recent borrowers defaulted on student loans within three years – a rate that suggests college has become unaffordable in too many cases. With countries including the UK moving rapidly towards a US-like model, the debate has resonance around the world.