The cost of higher education is escalating. This is causing many to question whether it is worthwhile to continue education beyond high school. Tuition costs are high, and choosing college over employment involves opportunity cost. In addition, students accumulate thousands of dollars of debt. Many wonder whether all these problems justify the investment. The risk is especially large for low-income families:they already have a difficult time making ends meet, and do not want the additional burden of college tuition and other fees.


Although pursuing a college degree costs a lot, there is evidence that the rate of return on investment is high enough to justify it. college graduatesearn more than high school graduates. The differential varies over time, but it never disappears.