Nearly Half of All Masters Degrees Aren't Worth Getting

[Muda69]

https://reason.com/2024/05/10/nearly-half-of-all-masters-degrees-arent-worth-getting/

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Is college worth it? Well, it depends on what degree you're getting and where you're getting it, according to a new paper from the Foundation for Research on Equal Opportunity (FREOPP), an economic opportunity think tank.

While more than three-quarters of all bachelor's degrees have a positive return on investment (ROI), according to the paper, master's and associate degrees are much riskier bets—with many costing students in the long run.

The paper, by Senior Fellow Preston Cooper, examined data from over 50,000 degree and certificate programs at thousands of American colleges and universities. Cooper's analysis looked at how much students were earning immediately after graduation, as well as how much they were making 10 years later. The paper also took into account a student's chance of dropping out when calculating a degree program's ROI.

In all, Cooper found that 31 percent of students are enrolled in a program with a negative ROI—meaning that "the earnings benefits of the degree are unlikely to fully compensate students for the cost and risk of pursuing post-secondary education."

 

However, different kinds of degrees were more likely to have a negative ROI than others. For example, 77 percent of bachelor's degrees and doctoral and professional degrees have a positive ROI. In contrast, just 57 percent of master's and associate degree programs have a positive ROI. 

For bachelor's degrees, fine arts, education, and biology programs had the lowest median ROI, while engineering, computer science, and nursing degrees gave students the highest long-term rewards.

However, where college students were enrolled also mattered when it came to ROI. For example, an English degree from the University of Virginia has a $581,925 positive return on investment—climbing to over $600,000 when only including students who graduated on time. In contrast, students at Virginia Commonwealth University—another public university—who majored in English have a negative $30,000 ROI, with just a $3,624 benefit for those who end up graduating on time.

"When choosing a college and program of study, students should evaluate several key variables that contribute to ROI. The most important is earnings after graduation," Cooper writes. "Besides starting salary, another critical factor is the institution's completion rate. While students' individual ability and motivation affects their likelihood of completion, research shows that college quality also has an impact on completion rates."

Cooper also pointed out just how much federal dollars go toward funding low-value degree programs. He found that 29 percent of the federal funding that went to the programs he studied went to programs with a negative ROI.

"That figure includes $37 billion in Pell Grants, $47 billion in loans to undergraduates, and $39 billion in loans to graduate students," Cooper writes. "Because ROI is negative for these programs, it's unlikely that most of those loan dollars will be repaid." 

This latest paper paints a detailed picture of the kinds of concerns prospective students and their families should take into account when deciding whether to enroll in college. While bachelor's degrees are still a good bet overall, students need to consider what they'll really get out of both the major they want to study and the school they've been accepted into.

A lot of useless degrees out there.  Yet people keep going into debt to earn them.  Insane.

 

 

[Muda69]

More along these lines:  https://mises.org/power-market/back-school-critique-college-model

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In a recent conversation with my college-educated friend, they expressed their sentiments that college, for many, was a waste, echoing a common critique among libertarians. Further, they continued, that if they were not led to believe that college would guarantee a well-paying career, they could have started working earlier, developing real-world skills, therefore, making closer to the comfortable pay of their non-college-attending colleagues. While some may view higher education as a necessary step towards personal and professional growth, others argue that the current system is plagued by inefficiencies, inflated costs, and a lack of connection to the job market.

Libertarians argue that the current college system isn’t sustainable due to its reliance on federal guarantees for student loans. This “blank check” has led to rising tuition prices, as colleges know they can basically borrow unlimited funds to finance their day-to-day operation. Without market forces reigning in costs, colleges have almost no incentive to get creative or reduce their expenses. As a result, many students graduate with enormous debt, and many without even securing jobs that justify their investment.

Many libertarians would agree that the education system prioritizes left-leaning indoctrination over gaining knowledge and real-world life skills, offering many programs that focus on irrelevant subjects rather than vocational training. This focus on theory-over-function application leads to a disconnect between education and employment, as graduates rarely can find jobs that align with their degrees.

In a perfect world, education would be decentralized and market-driven. Students would have more freedom to choose programs that align with their interests and career goals, rather than being covered into traditional liberal arts or STEM programs. Giving that choice would encourage innovation and competition among colleges, leading to lower costs while also increasing the value of the degrees.

Additionally, while many colleges solely focus on degrees with little real-world application, ideally there would be a shift towards vocational training and apprenticeships, providing students with hands-on experience and skills useful to the ever-changing job market. This approach would also reduce the burden on taxpayers, as government subsidies for higher education would be minimal. Some might think that prioritizing vocational training discourages higher learning and creates a worker economy, but that ignores the individual entirely and their ability to enrich themselves outside of the college environment. Online courses, lectures, and community programs can provide access to a wide range of subjects and skills without the need for a traditional college degree.

Furthermore, many libertarians would argue that the current system’s focus on “theoretical knowledge” has led to a lack of practical problem-solving skills and adaptability in life as a whole, let alone through the workforce. A more market-driven approach to education would prioritize these types of skills, better preparing students for the current landscape of the job market.

In conclusion, my friend’s assertion that college, for many, is a waste is certainly valid. To combat this increasingly-common sentiment, it’s clear that a more libertarian approach is necessary. While some may disagree with this perspective, it’s essential to acknowledge the very real concerns about cost, relevance, and effectiveness. It’s no secret that college loans are predatory, but the answer is how to combat this practice varies.

By decentralizing education, promoting vocational training, and embracing market forces, libertarians aim to create a solution that better serves students and society as a whole. Ultimately, the debate surrounding college and its value highlights the need for innovation and reform in education. As it benefits us all to create a more efficient and effective system, we must consider the libertarian perspective as a valuable answer to a long unanswered problem.

 

[Bobref]

On 5/13/2024 at 9:00 AM, Muda69 said:

https://reason.com/2024/05/10/nearly-half-of-all-masters-degrees-arent-worth-getting/

A lot of useless degrees out there.  Yet people keep going into debt to earn them.  Insane.

 

 

This assumes that the only reason for getting a degree is to help in getting a job. Thus, the only measure of the worth of the degree is economic. Not true for everyone.

[Muda69]

3 hours ago, Bobref said:

This assumes that the only reason for getting a degree is to help in getting a job. Thus, the only measure of the worth of the degree is economic. Not true for everyone.

Please elaborate. 

[Bobref]

9 minutes ago, Muda69 said:

Please elaborate. 

Unnecessary. I used plain English.

[Muda69]

13 hours ago, Bobref said:

Unnecessary. I used plain English.

So what other "measures of worth" in regards to college/university degrees are there?