Money Research Collective’s editorial team solely created this content. Opinions are their own, but compensation and in-depth research determine where and how companies may appear. Many featured companies advertise with us. How we make money.
Nearly 60% of College Students Have Considered Dropping Out Because of Money
By Adam Hardy MONEY RESEARCH COLLECTIVE
The financial burden of a degree is leading many Americans to question whether college is worth it.
College students are so concerned about affording their education that they’re considering dropping out in droves.
About 60% of current students said they have considered calling it quits on their degree due to financial stress, according to a survey released Wednesday by Ellucian, a higher education tech company. What’s more, the firm found that many of them — 19% — actually did drop out, citing financial uncertainty as the leading cause.
“It’s clear that academic success is directly linked to student financial success,” Ellucian CEO Laura Ipsen said in a statement.
The survey was conducted in February and March and included responses from 1,500 U.S. college students.
College… at what cost?
With so many students struggling to pay for college, the financial stress is taking a major toll on students’ mental health and academic performance.
Of the students having trouble affording their studies, nearly 80% in the Ellucian poll reported that the strain is affecting them mentally, and 61% said their grades slipped result.
The financial burden of a degree, both in and after college, is leading many Americans to question whether college is worth it these days. For instance, a recent Pew Research Center study found that only 22% of Americans believe that college is worth it if the person has to take out student loans (which the vast majority of students do). An even bigger share, 29%, said college isn’t worth it even if student loans aren’t required.
The shift of uncertainty in the value of a degree comes amid rising earnings for high-school grads, dwindling job security for college grads and, of course, the growing costs of college.
While the price tag for a degree has slowed its upward march since the pandemic, college expenses overall have skyrocketed over the past 20 years. According to a Money analysis of U.S. Education Department data, the inflation-adjusted cost of a bachelor’s degree — including tuition, fees, room and board and assuming a four-year completion — has increased by 30% since the early 2000s, to over $123,500.
The wallet-draining effects of today’s historically high levels of inflation could also be fueling the loss of faith in higher education. In many cases, students are now faced with financial ultimatums like paying for college or the necessities of everyday life: In the Ellucian survey, 57% reported having to choose between college expenses and basic needs like food and clothing.
That said, college grads continue to earn a notable premium over their counterparts who hold only a high school diploma.
According to data from the New York Federal Reserve, typical wages for young workers with high school educations are $36,000.
For recent college grads? $60,000.
More from Money:
These Are the Best Colleges in America
Biden Student Loan Plan Blocked: What’s Left of Debt Relief After Court Orders?
Medical Debt vs. Student Loan Debt: Which Would You Cancel?
Adam Hardy is Money's lead data journalist. He writes news and feature stories aimed at helping everyday people manage their finances. He joined Money full-time in 2021 but has covered personal finance and economic topics since 2018. Previously, he worked for Forbes Advisor, The Penny Hoarder and Creative Loafing. In addition to those outlets, Adam’s work has been featured in a variety of local, national and international publications, including the Asia Times, Business Insider, Las Vegas Review-Journal, Yahoo! Finance, Nasdaq and several others. Adam graduated with a bachelor’s degree from the University of South Florida, where he studied magazine journalism and sociology. As a first-generation college graduate from a low-income, single-parent household, Adam understands firsthand the financial barriers that plague low-income Americans. His reporting aims to illuminate these issues. Since joining Money, Adam has already written over 300 articles, including a cover story on financial surveillance, a profile of Director Rohit Chopra of the Consumer Financial Protection Bureau and an investigation into flexible spending accounts, which found that workers forfeit billions of dollars annually through the workplace plans. He has also led data analysis on some of Money’s marquee rankings, including Best Places to Live, Best Places to Travel and Best Hospitals. He regularly contributes data reporting for Best Colleges, Best Banks and other lists as well. Adam also holds a multimedia storytelling certificate from Poynter’s News University and a data journalism certificate from the Investigative Reporters and Editors (IRE) at the University of Missouri. In 2017, he received an English teaching certification from the University of Cambridge, which he utilized during his time in Seoul, South Korea. There, he taught students of all ages, from 5 to 65, and worked with North Korean refugees who were resettling in the area. Now, Adam lives in Saint Petersburg, Florida, with his pup Bambi. He is a card-carrying shuffleboard club member.