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A College Education - Still a Great Investment

Though the costs of a college education continue to rise, current research indicates that the value of obtaining a college degree far outweighs the current increases in cost of obtaining a diploma.

According to a study compiled by Arizona State University, those with a college education make on average of $1 million more than people with just a high school education. "The Value of Higher Education: Individual and Societal Benefits" study included the income a college student sacrifices while earning a college degree. The study also took into account the costs associated with earning that degree, including student loans.

Perhaps an even more compelling statement was that the Arizona State study revealed that investing in a college degree was an even better use of funds than investing in Wall Street. Even for earning just a bachelor's degree, the rate of return on investment was a solid 12 percent, almost twice the average Wall Street stock return of 7 percent.

Despite data that continues to confirm the positive effects of obtaining a college degree, Americans seem unwilling to make the investment in higher education. Whereas more than 50% of American adults own stock (according to the American Shareholders Association), only 25 percent of adults have a bachelor's degree.

By Thomas Hanson
Nov 25, 2005, 17:13
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