Entries for November 2008

As the values of real estate, stocks, and bonds evaporate, people seem to be questioning whether investing time and money in a college degree is worthwhile. The answer, it turns out, is pretty clear: A wide variety of studies show that, on average, college pays off in financial and nonfinancial ways. But some college graduates—especially those who attend low-quality institutions or take worthless courses—will be below that average and might very well be wasting their time and money. Those who are lucky, smart, and diligent enough to attend high-quality colleges and earn in-demand degrees will be far more likely to reap big rewards.

This is controversial stuff. Our story summarizing research that shows that the average real net present value of a college degree is about $300,000 drew hundreds of comments. A new software program developed by computer whizzes and journalists at Ohio State University and the University of Delaware analyzed the nearly 700 comments and found that those who wrote were split nearly 50-50 over whether a degree was really valuable.

Q: How will the recent financial and economic troubles affect my college scholarship?
A: Anyone who has already qualified for any kind of grant or scholarship this fall should be fine. But charities and governments are already planning to cut back the amount of money they'll be handing out next year.

The market meltdown is increasing demand for scholarships far above the dollars expected to be available next year. In fact, several scholarship programs are likely to cut awards next year, despite record-breaking applications.