Colleges & universities

Study: 25% of US Grads Earn Less Than High School Students

FEB 20 2024·Updated FEB 21 2024

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The Facts

According to a study conducted by The HEA Group, 1 in 4 US higher education program attendees earn less than the median annual income of $32K earned by high school graduates a decade after enrolling.
Forbes
The study analyzed data from the US Department of Education's College Scorecard to calculate the earning outcomes of nearly 5M students at 3,887 higher education institutions across the country.
The HEA Group
It examined the institutions to determine whether the majority of their students earned above the federal poverty line of $14,580. The research included students who had completed their programs, as well as attendees who dropped out before getting a certificate or degree.
The HEA Group
The study found that nearly 71% of the for-profit institutions had failed to meet the threshold, while 248 or 14% of the public institutions also failed to meet the minimum economic benchmark.
Forbes
While many public state universities and colleges were found to help their students earn higher at a relatively low fee, graduates of Ivy League Institutions and other elite institutions produced the highest earnings for their students.
CBS News
Last year, a study by the Wall Street Journal and NORC at the University of Chicago found that nearly 56% of Americans no longer believe a four-year college degree is worth the cost, compared to 40% in the previous decade.
CBS News

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The Spin

Establishment-critical narrative

Most people enroll in higher education intending to better themselves economically. However, this is still a dream for more than a quarter of students. While earning a good salary after completing higher education is a reasonable expectation, many institutions do not provide the value students expect. This study shows that higher education isn't always worth the cost.

Forbes

Pro-establishment narrative

While the data may be disappointing, this study's findings may not be indicative of most higher education institutions. Other studies on the economic impact of higher education have found that increased education strongly correlates with higher earnings and, at the very least, correlates with lower poverty rates.

The Salt Lake Tribune