Brookings Institution: College is the best investment
A new report issued by the Brookings Institution, one of the country's leading think tanks, suggests that a college degree provides students with a much better return on their investment than putting their money into the stock market or bonds.
The researchers who evaluated the relative benefit of a college education were part of the Brookings Institution's Hamilton Project. According to its website, this initiative's main goal is to promote opportunity, prosperity and growth in the U.S.
Hamilton Project analysts calculated that the total investment in a college education is $102,000 for a four-year program and $28,000 for a two-year associate's degree, using data on average tuition as well as the potential loss of income during time spent out of the workforce.
While this may seem like a significant figure, the researchers found that having a college degree ultimately has a profound impact on future earnings. Overall, they wrote that "the benefits of a four-year college degree are equivalent to an investment that returns 15.2 percent per year."
This figure is reportedly twice the annual return for stock market investment and five times that of bonds, gold and even home ownership, suggesting that investing a significant amount of money in education will likely pay off in the long run.
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