Is College Still Worth the Money?

As rising college costs continue to strain families' finances, some experts question whether getting a college degree is worth the expense these days. Among the most outspoken of these experts is Richard Vedder, director of the nonprofit Center for College Affordability and Productivity and a professor of economics at Ohio University. In a recent Wall Street Journal column, Vedder argued that the value of a college degree is declining and called for stronger cost controls and accountability among institutions of higher learning. He responded to our questions via email. 

College costs have been skyrocketing for years, yet there's some indication that the rate of tuition inflation is slowing. Are we at a turning point in terms of rising college costs?
Yes, I suspect so. I would be surprised if the inflation-adjusted change in college costs during the next five years is as great as it was in the past five years. Economic fundamentals are finally overcoming market distortions arising from governmental involvement to force smaller tuition increases, and, arguably, maybe even tuition declines in the coming years.

Getting your money's worth out of your college investment seems more important than ever. How can families make smart college choices to maximize the return on their investment?
They need to shape their decisions based on a realistic appraisal of the potential student's academic success, making college applications and decisions accordingly. They need to realize that the course of study in college matters, and college graduates in a lot of popular majors (for example, communications, outdoor recreation, most humanities, social science, and fine arts) tend to end up underemployed after college--baristas and janitors. Top students who can get into elite private schools probably will get a good return on their investment. Above all, [I suggest that students should] graduate in four years; the fifth year usually yields little and adds 25 percent to costs.

Given the prohibitively high cost of college for many families, should they be looking at alternative ways to prepare their children for the working world, and what might those be?
Too many students blindly pursue four-year degrees, with 40% not graduating in six years, and half of those who do graduate get at best so-so jobs. Many should do two-year associate-degree programs and then--if they succeed--they might transfer to a four-year school. Academically challenged kids should consider doing short (maybe one-year) programs learning to do a specific skill: driving an 18-wheel truck, becoming a plumber or welder, and so on.

You've questioned the conventional wisdom that says that a college degree is a sure-fire ticket to a career and a better life. Can you explain?
The evidence is there. Only 53% of college graduates are in jobs that the Department of Labor says require a college degree. Millions of college graduates are working as retail sales clerks, taxi drivers, baristas, janitors, home health-care aides, and so on. The number of college graduates is simply greater than the number of high-paying jobs in the professional, technical, and managerial fields.

It feels like the higher-education system in the U.S. is in a period of transformation and that this is at least partially driven by economics. How is the college experience likely to change in the coming decades?
Several scenarios are possible. Nonschool forms of certifying potential work competency may arise--national exams, for example. More instruction by low-cost electronic (Internet) means seems inevitable. At the same time, there is a consumption dimension to higher education, so I don't think the traditional residential college or university model will die during the next decade or two, though some weaker institutions might disappear as "creative destruction" comes to higher education.