Education Pays: New Evidence Reaffirms Importance of Attending College
Submitted by EDFUND Communications Staff

The positive impact of higher education extends not just to individuals who pursue postsecondary education, but also to society as a whole, says a recent study by the College Board. Key findings in the report include higher earnings for all racial/ethnic groups and higher levels of education among the children of college graduates.

Education Pays: The Benefits of Higher Education for Individuals and Society was released this fall in conjunction with the College Board’s Trends in Student Aid and Trends in College Pricing reports. Education Pays looks at the private and public investments in higher education, concluding substantial returns—both monetary and non-monetary.

“Education Pays shows that students who attend college obtain a wide range of personal, financial and other lifelong benefits; likewise, taxpayers and society as a whole receive many direct and indirect benefits when our country’s citizens have access to college,” said College Board President Gaston Caperton.

According to the report, some of the benefits of higher education to individuals include:

• A correlation between higher levels of education and higher earnings for all racial/ethnic groups and for both men and women.
• The income gap between high school graduates and college graduates has increased significantly over time.
• The earnings benefit to the average college graduate is high enough for graduates to recoup both the cost of full tuition and fees plus forgone earnings while in college in a relatively short period of time.

The societal benefits reported include:

• Lower levels of unemployment and poverty for those with higher levels of education, making college graduates less likely to depend on social safety-net programs
• Lower smoking rates
• Lower incarceration rates
• An increase in civic participation, including volunteer work, voting and blood donation

Education Pays also asserts that, despite progress in improving educational opportunities, participation in higher education differs significantly by family income, parent education level and other demographic characteristics.

“Uneven rates of participation in higher education across society should be a matter of urgent interest not only to the individuals affected but also as a public policy issue at the federal, state and local levels,” Caperton said.

The full Education Pays report can be found on the College Board Web site at www.collegeboard.com/prod_downloads/press/cost04/EducationPays2004.pdf.

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