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About the Product

Author(s) and/or Contributor(s): Saad Asad, Jessica Bailey, Adam Torson

Description: Topic analysis and evidence for the January 2012 PF Topic. Topics covered include student loan debt, the effect of a college degree on lifetime income, the opportunity costs of college, and much more.

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TABLE OF CONTENTS                                                                                              2

Topic Analysis by Saad Asad                                                                                   5

Topic Analysis by Jessica Bailey                                                                            15

Topic Analysis by Adam Torson                                                                              28

AFFIRMATIVE EVIDENCE                                                                                         39

TUITION INFLATION EXCEEDS INFLATION, FINANCING COLLEGE IS INCREASINGLY EXPENSIVE, AND CONSUMER GOODS HAVE GOTTEN COMPARATIVELY LESS EXPENSIVE………………………………………………………………………………………. 39

THE COSTS OF COLLEGE ARE RISING AT AN UNSUSTAINABLE RATE………………………………………………. 40

THE COST OF COLLEGE CONTINUES TO RISE AND THE VALUE OF A BACHELORS DEGREE CONTINUES TO DECLINE 41

PEOPLE MISCALCULATE WHEN ASSESSING THE DESIRABILITY OF GOING TO COLLEGE BECAUSE IT IS A CONSUMPTION DECISION AS MUCH AS IT IS AN INVESTMENT…………………………………………………………………………………….. 42

WE FAIL TO CRITICALLY ASSESS THE ACTUAL MARGINAL VALUE OF IMPROVING HUMAN CAPITAL 43

IN THE UNITED STATES, COLLEGE DROP-OUT RATES ARE VERY HIGH, AND STUDENTS DO NOT STUDY RIGOROUSLY                44

COLLEGES HAVE GONE FROM RIGOROUS ACADEMIC ENVIRONMENTS INTO CORPORATE-MINDED YOUTH RESORTS                45

GIVEN THAT SO MANY PEOPLE DON’T GRADUATE FROM COLLEGE, IT IS AN EXTREMELY RISKY INVESTMENT               46

STUDENT LOAN DEBT CANNOT USUALLY BE CANCELLED IN BANKRUPTCY AND CAN DRIVE STUDENTS TO PURSUE CAREERS THEY DON’T REALLY WANT; SOME ARE CONCLUDING THAT IT IS NOT WORTH THE COST……………. 47

MORE STUDENTS THAN EVER ARE REPORTING LEAVING COLLEGE WITH A SUBSTANTIAL DEBT BURDEN THAT AFFECTS THEIR LIVESE AND CHOICES…………………………………………………………………………………………………………………………….. 48

THE THIEL FELLOWSHIP ENCOURAGES INNOVATORS TO SKIP COLLEGE SO THAT THEIR ABILITY TO TAKE RISKS IS NOT COMPROMISED BY COLLEGE DEBT………………………………………………………………………………………………………. 49

THE INCREASE IN COLLEGE DEBT HAS SEVERAL CAUSES……………………………………………………………….. 50

STUDENT LOAN DEBT IS SUBSTANTIAL FACTOR IN EXPLAINING WHY YOUNG ADULTS ARE DOING WORSE THAN THEY DID IN PREVIOUS GENERATIONS………………………………………………………………………………………………………………………. 51

SUCCESS IN BUSINESS DEPENDS MORE ON INDIVIDUAL HARD WORK AND PERSEVERENCE THAN ON FORMAL EDUCATION…………………………………………………………………………………………………………………………………………………………………… 52

PEOPLE GENERALLY VALUE A STRONG WORK ETHIC MORE THAN A COLLEGE EDUCATION……….. 53

YOUNG PEOPLE ARE ABLE TO START A BUSINESS AND LEARN VALUABLE LESSONS THAT THEY CANNOT LEARN IN COLLEGE…………………………………………………………………………………………………………………………………………………………………… 54

TRAVEL TEACHES YOU THINGS YOU CANNOT LEARN IN COLLEGE………………………………………………….. 55

THE BEST WAY TO LEARN HOW TO THINK IS TO DO SOMETHING PRACTICAL…………………………………. 56

PUBLIC SUPPORT OF PEOPLE WHO AREN’T READY TO GO TO COLLEGE COSTS THE TAXPAYERS MILLIONS  57

HIGHER EDUCATION IS A BUBBLE AND IS WORSE THAN THE HOUSING BUBBLE IN SEVERAL WAYS 58

THE COLLEGE BUBBLE IS LESS LIKELY TO BE QUESTIONED BY ELITES THAN THE HOUSING BUBBLE              59

FOR MANY COMMUNITY AND CAREER COLLEGES ARE A BETTER OPTION THAN FOUR-YEAR UNIVERSITIES    60

COMMUNITY COLLEGES DO NOT WORK FOR EVERYONE BECAUSE THEY DON’T HAVE THE SUPPORT NETWORK OF FOUR-YEAR UNIVERSITIES, BUT THEY ARE A GOOD OPTION FOR PEOPLE WHO ARE ALREADY WORKING AND WANT TO AUGMENT THEIR SKILLS………………………………………………………………………………………………………………………………………………………. 61

IT TAKES A LONG TIME FOR INCREASED INCOME TO COMPENSATE FOR THE COSTS OF COLLEGE, AND THE COLLEGE BOARD’S STUDY FAILS TO MEANINGFULLY ASSESS QUALITY OF LIFE……………………………………………………………… 62

ECONOMIC BENEFITS OF COLLEGE ARE OVERSTATED BY A SIMPLE INCOME COMPARISON………. 63

EVEN IF COLLEGE PAYS OFF SLIGHTLY FOR THE AVERAGE WORKER, IT IS A HIGH RISK INVESTMENT BECAUSE MANY BY DEFINITION EARN BELOW THE AVERAGE INCOME……………………………………………………………………………… 64

THE COLLEGE ADMISSIONS PROCESS SELECTS FOR TALENTED PEOPLE, SO SIMPLY SAYING THE STUDENTS HAVE GOOD OUTCOMES DOES NOT NECESSARILY MEAN THE COLLEGE ADDED VALUE………………………………….. 65

THE RETURN ON A COLLEGE DEGREE IS STRONGLY OVERSTATED BECAUSE IT IS ONLY RELATIVE TO THE DECREASING VALUE OF A HIGH SCHOOL DIPLOMA AND OMITS LONG TERM DEBT REPAYMENT……………………………………… 66

THE LIFETIME INCREASE IN INCOME FOR COLLEGE GRADUATES IS OVERSTATED AND IS OUTWEIGHED BY APPLYING COLLEGE TUITION TO EVEN MODESTLY PRODUCTIVE INVESTMENTS………………………………………………………………. 67

STATISTICS ABOUT COLLEGE GRADUATES EARNING HIGHER INCOMES SHOW CORRELATION BUT NOT CAUSALITY  68

PAYSCALE’S RETURN ON INVESTMENT DATA FOR A COLLEGE DEGREE IS SKEWED IN SEVERAL WAYS           69

MANY COLLEGES HAVE A LOWER RETURN ON INVESTMENT THAN STANDARD STUDENT LOAN INTEREST RATES       70

NEGATIVE EVIDENCE                                                                                                     71

COLLEGE GRADUATES EARN HIGHER MEDIAN INCOMES THAN PEOPLE WITH ONLY A HIGH SCHOOL DIPLOMA           71

PEOPLE WITH A COLLEGE DEGREE HAVE, ON AVERAGE, TWICE THE LIFETIME EARNINGS OF THOSE WITH ONLY HIGH SCHOOL DIPLOMAS………………………………………………………………………………………………………………………………………………… 72

THE COST OF COLLEGE PAYS FOR ITSELF IN UNDER TEN YEARS BECAUSE OF INCREASED INCOME                73

WHILE AMERICANS GENERALLY BELIEVE THAT COLLEGE IS TOO EXPENSIVE, THEY ALSO BELIEVE THE INVESTMENT IS WORTH IT………………………………………………………………………………………………………………………………………………………………… 74

THE CAUSAL RELATIONSHIP BETWEEN COLLEGE EDUCATION AND INCREASED INCOME IS ONE OF THE MOST WELL DOCUMENTED IN ECONOMICS……………………………………………………………………………………………………………… 75

THOUGH COLLEGE IS A BIG INVESTMENT, ITS RATE OF RETURN IS BETTER THAN ALMOST ANYTHING ELSE  76

COLLEGE GRADUATES EARN MORE MONEY AND LIVE LONGER, AND THESE BENEFITS WOULD ACCRUE TO MANY PEOPLE WHO CURRENTLY CHOOSE NOT TO GO TO COLLEGE………………………………………………………………………………….. 77

THE ESTIMATES FOR RETURN ON INVESTMENT FOR A COLLEGE DEGREE FROM THE ORGANIZATION PAYSCALE TAKE INTO ACCOUNT THE OPPORTUNITY COST OF EDUCATION…………………………………………………………………………. 78

A COLLEGE DEGREE HAS SEVERAL POSITIVE RETURNS ON INVESTMENT, INCLUDING HIGHER EARNINGS, MORE JOB SECURITY, AND SIGNALING YOUR ABILITIES TO EMPLOYERS……………………………………………………………………………….. 79

EVEN COLLEGE GRADUATES WHO UNDERPERFORM ECONOMICALLY MAKE MORE THAN THOSE WITH ONLY A HIGH SCHOOL DEGREE……………………………………………………………………………………………………………………………………………………. 80

EVEN THOUGH MORE PEOPLE ARE SKEPTICAL OF THE COST OF COLLEGE, UNEMPLOYMENT IS DRAMATICALLY LOWER AMONG COLLEGE GRADUATES…………………………………………………………………………………………………………………………… 81

PEOPLE WHO GRADUATE FROM COLLEGE REPORT THAT IT HELPED THEM GROW INTELLECTUALLY AND AS A PERSON, AND HELPED PREPARE THEM FOR A JOB…………………………………………………………………………………………………….. 82

A COLLEGE DEGREE GIVES YOU BETTER JOB PROSPECTS THAN THE ALTERNATIVE…………………… 83

COLLEGE GRADUATES HAVE AN EASIER TIME FINDING EMPLOYMENT AND ADVANCING IN THEIR CAREERS 84

EVEN DURING THE RECESSION, COLLEGE GRADUATES FAIRED MUCH BETTER IN FINDING EMPLOYMENT THAN THOSE WITH ONLY A HIGH SCHOOL DIPLOMA……………………………………………………………………………………………………………. 85

HAVING A COLLEGE DEGREE MAKES INDIVIDUALS MUCH LESS VULNERABLE TO ECONOMIC DOWNTURN; THE LONG TERM DATA THAT DEMONSTRATE THIS CONTROL FOR OUTSIDE VARIABLES……………………………………………. 86

THE SOCIAL REWARDS OF ATTENDING COLLEGE STILL MAKE MOST PEOPLE STRONGLY FAVOR PURSUING A COLLEGE DEGREE…………………………………………………………………………………………………………………………………………………………………… 87

COLLEGE GRADUATES TEND TO LEAD HEALTHIER AND MORE ENJOYABLE LIVES……………………….. 88

COLLEGE ISN’T JUST AN ECONOMIC CALCULATION; IT DEVELOPS CRITICAL AND RIGOROUS THINKING SKILLS NECESSARY FOR GOOD CITIZENSHIP…………………………………………………………………………………………………………………………………. 89

THOSE WITH A COLLEGE DEGREE NOT ONLY MAKE MORE MONEY BUT ARE ALSO MORE SATISFIED IN THEIR JOBS    90

COLLEGE GRADUATES ARE MORE LIKELY TO LIVE A HEALTHY LIFESTYLE……………………………………… 91

COLLEGE GRADUATES ARE BETTER PARENTS…………………………………………………………………………………… 92

COLLEGE GRADUATES ARE MORE INVOLVED IN THEIR COMMUNITIES…………………………………………… 93

COLLEGE DEBT DOES NOT OVERWHELM THE BENEFITS OF A COLLEGE EDUCATION SO LONG AS STUDENTS KEEP THEIR DEBT MANAGEABLE………………………………………………………………………………………………………………………………………….. 94

THE PROBLEM OF STUDENT LOAN DEBT IS SUBSTANTIALLY OVERSTATED…………………………………… 95

THE AMOUNT OF COLLEGE DEBT FOR THE AVERAGE STUDENT HAS BEEN EXAGERATED………….. 96

CLAIMS THAT THE COST OF COLLEGE HAS GROWN UNMANAGABLE ARE GREATLY EXAGERATED 97

THE ANALOGY BETWEEN THE HOUSING BUBBLE AND THE SUPPOSED “EDUCATION BUBBLE” IS SPECIOUS 98

ONLY SOME INSTITUTIONS OVERCHARGE FOR A DEGREE RELATIVE TO THE RETURN ON INVESTMENT; THIS IS ESPECIALLY PRONOUNCED AMONG ONLINE FOR-PROFIT SCHOOLS ON WHICH THE GOVERNMENT IS CRACKING DOWN  99

THE COLLEGE LOAN BUBBLE IS NOT AS DANGEROUS AS THE HOUSING BUBBLE BECAUSE IT IS MOSTLY INDIVIDUALS ON THE HOOK AND IT IS NOT AS LARGE AS THE HOUSING BUBBLE…………………………………………………………….. 100

HIGH PROFILE EXAMPLES OF TREMENDOUSLY SUCCESSFUL PEOPLE WITHOUT COLLEGE DEGREES DO NOT PROVE THAT A COLLEGE DEGREE ISN’T BETTER FOR MOST PEOPLE……………………………………………………………………… 101

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If you do not want to order online, and would prefer to send in your order using email, fax, mail or phone, download and print the ORDER FORM.

If you have questions, please email help@victorybriefs.com or call 310-472-6364.