Published: March 4, 2010

In a recent panel discussion, the Chronicle of Higher Education asked if too many students are going to college. Given the high cost of attendance and the nature of the return alone, this is indeed the case.

The high cost to students is self-evident. Tuition is increasing not only at private universities; students at state universities also see a higher price tag on their education. With budget shortfalls plaguing each tier of government, it is inevitable that funding for education will be cut, thereby increasing the cost to students even further. The most obvious private return to a B.A. is the higher income. In 2008, the median income for someone with a high school degree was $33,618, whereas the median income for someone with a B.A. was $60,954. If they both retire at 65, and the premium for attending college remains the same, the college graduate will earn roughly $1,000,000 of today’s dollars more than someone who does not attend college. The college graduate will also be less likely to be unemployed and, even compared to a high school graduate with the same income, enjoy a higher life expectancy.

Given those benefits, why would I argue that there are too many people attending college? With an ever increasing number of students attending college, a B.A. has become expected for many jobs that are not at all academic in nature. This is especially true with jobs that require a B.A. but do not care which major the applicant pursued. In those cases, the degree is a signaling device that lets human resources ‘weed out’ applicants they think would not be qualified. The skills they are interested in are extremely basic: reading and writing at a reasonable level and maybe some critical thinking. Even the $50,000 one might pay for a B.A. at a state university is far too high a price to signal so little, never mind the $150,000—or more—one would spend at a private university like Fordham. This is not something the individual student can change, so she is right to pursue the degree despite the high cost. However, it is crucial for policy makers to note. The idea that more and more students should continue to attend college, often times heavily subsidized by taxpayers, is going to leave them with a significant debt burden and little or no relevant skills to show for it.

One might argue that a college degree offers more than simply a higher salary. True, it offers the opportunity for a broad education. Yet I would argue that most students do not care for the broad exposure and consequently do not benefit from it. This may even be true for Fordham and other highly ranked colleges, but certainly is true for the roughly 2,000 unranked colleges and the for-profit institutions that award 4-year degrees. But what’s your alternative if you are pursuing a white collar job? Driving more and more people to colleges erodes other options, as the college degree becomes the single most important entry requirement. It stands to reason that an accountant doesn’t need the skills taught in art history and would be better off with a program exclusively designed around accounting, along with ethical and legal skills to navigate the corporate world.

Elevating a broad education to become part of the American dream has also changed how blue collar workers are viewed. They are often described as unskilled labor and the perception exists that they are badly paid. However, blue collar work can be far better compensated than the jobs many college graduates will hold. Anyone who has tried to do some plumbing on their own might see that it is not at all unskilled work. If we are to live through a green revolution, there will be a tremendous need for skilled workers who can install solar panels and build windmills. Where will they attain the needed skills to make these precision items?

Policymakers have recognized that education is the way to let more people enjoy the middle-class lifestyle. Unfortunately, they have confused education with a degree rather than an approach to life. The need to push people through the system has eroded educational standards. Consequently, many students leave high school without the ability to write a simple letter or read a scientific article. Pushed on to go to college, many register without the educational foundation to succeed. The unfortunate consequence is that half the students who start a college degree drop out again—but not before racking up some debt. President Obama has argued that every student should get at least a year of tertiary education. However, I believe taxpayer funds would be much better spent extending high school by a year. The additional time would hopefully produce better graduates, without the need to lower standards at universities and cram even more students into introductory courses.