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Prestige vs. Price: Does It Matter Which College You Attend?

May 18, 2012, 4:30 PM
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What's the Latest Development?

A series of studies offer varying points of view on whether students should take on more debt to receive a degree from a more prestigious college. When institutions are evaluated according to the their renown and how much money their students earn after graduating, taking on additional debt typically yields a bigger paycheck. Another survey, however, suggests that which schools you apply to is a more important indicator of your future earning potential. In other words, if you're good enough to apply to Yale but don't quite get in, you're likely good enough to earn a Yale-sized paycheck. 

What's the Big Idea?

With student debt set to surpass $1 trillion, some wonder if college loans are the next bubble to burst in the American economy. Even students attending public universities are now forced to take out loans to cover rising tuition costs. Colleges may see little need to reduce tuition hikes because students always seem to find ways to pay. Indeed, securing a massive student loan from a private bank is shockingly easy. The largest financial institutions have successfully lobbied lawmakers over the years to prevent student loans from ever being erased, not even through personal bankruptcy. As a result, banks have little incentive to screen candidates according to their ability repay the loans. 

Photo credit: Shutterstock.com

 

 

Prestige vs. Price: Does It...

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