Posted by Mike Smith :: September 18, 2008 @ 7:35 am

The Associated Press recently reported that earning potential and its impact on paying off college debt were often not considered when choosing which school to attend. This, at the same time when one of the featured articles in Money magazine asked “Is a College Degree Still Worth It?”

It seems reasonable that other, more emotional factors such as school reputation, location, competitiveness, etc., would be part of the college selection process. But to totally ignore the cost as well as the ability to afford, or easily repay, attending a particular college seems unreasonable. We all strive to weigh the benefits of purchases versus the costs we incur in other areas, so why is college treated differently?

Perhaps is has to do with the psychological worth we place on schools that cost more. Many studies have shown that paying more does not necessarily lead to earning more or translate into a higher quality education. The Money article also noted how some universities were raising tuition and fees simply to raise the perception of quality at their institutions. At some level, we may actually feel better if we spend more on college.

College costs have been rising at much higher rates than other items of general concern. While energy costs have grown at a rate of 108% since 1985 and medical expenses at 251%, tuition has grown at an overwhelming 439%. It’s hard to imagine that the quality of such an education has grown at a similar pace.

A college degree is certainly something of value, but we need to ensure that we don’t equate high cost with high quality. In many cases, the abilities of the students will dictate their success far more than the college they attend. Getting bogged down with excessive college debt for a marginally better (or perhaps worse) education is not a financially savvy way to begin your adult life.