from Challenger Gray and Christmas
ARE EXPENSIVE DEGREES WORTH IT?
As universities debate whether to open campuses for the fall semester, many college students and their parents are weighing the importance of attending expensive universities if curricula will only be offered online again in the autumn. In fact, numerous lawsuits have been brought by students (and some parents) against universities across the U.S., demanding reimbursement or refunds of tuition, fees, and even room and board, as in-person instruction ceased and doors to campus buildings were closed.
Are degrees from certain colleges worth the expense?
“Many parents and students are pondering whether the higher tuition of a better-known school is worth it when the college experience consists of only online classes,” said Andrew Challenger, Senior VP of global outplacement and executive and business coaching firm Challenger, Gray & Christmas, Inc.
“While the prestige of high-ranking or even Ivy League schools may get the attention of some employers or alumni hiring managers, many employers value relevant experience over where someone graduated.”
Will taking courses offered by less-selective schools hurt graduates once they are out in the workplace?
Not necessarily.
“Although elite schools may offer more challenging courses in some cases, it is more important to focus on the effort students put in to their courses, as they can learn transferable skills no matter where they are paying tuition,” Challenger said.
“Going to college is often seen as the beginning of one’s career, when they learn to study and cope with new situations as well as be responsible and accountable for their work and multitask successfully. Completing an academic program online can still prepare students to handle the professional world.”
The importance of where to attend school can be exaggerated. U.S. News & World Report reported in 2019 that the number of CEOs from the top 100 of the Fortune 500 companies who graduated from Harvard University was two, the same number as those who graduated from Illinois State University. CNBC reported in 2018 that the University of Wisconsin has produced the current highest number of Fortune 500 CEOs, at 14, followed by Cornell University with ten.
From Forbes, of the Fortune 100 company CEOs who graduated, only 11% obtained an undergraduate degree from an Ivy League school. In another study of 851 self-made billionaires worldwide, 7% dropped out of college, while only 14% graduated from an Ivy League school – the most coming from Harvard (51, plus another 20 from Harvard Business School), according to Debut Careers.
Often these elite schools offer intricate networking systems and opportunities for new graduates and alumni searching for employment. But it comes with a price: according to EducationData.org, average tuition and fees (not including room and board) for the current year at private colleges are around $37,000; for public universities for in-state students, $10,500; and for public schools for out-of-state students, nearly $27,000. According to the American Association of Community Colleges, yearly tuition for a community college is about $3,400.
“Some graduates of well-known schools may make more money in their early career, but they also may be in greater debt starting out, offsetting the earnings,” Challenger said. “It may be prudent for students to temporarily put off attending more selective schools if the curricula must be online, especially if they find less expensive programs offered in their field of study. Perhaps they can wait until going for a master’s degree to pick the more prestigious institution. In some industries, this will matter more than where they went to undergrad. Or students can complete general education courses at a junior college and then transfer once the pandemic is over.”