by Jamie Pierce

Created on: August 07, 2009

Demand is the key word in any cost benefit analysis. The demand by students for a college education has risen to an all-time high. As this is occuring, the cost of that education has risen at an almost exponential rate. The question is really whether the benefits of the college education have risen at an equal or higher rate than the cost. In today's economy, the answer is an unequivocal no. Companies that once hired college students straight out of school are now downsizing through attrition and lay-offs. Large financial companies that span many different industries have filed bankruptcy or become completely insolvent. Some of the largest companies in the world have fallen prey to the economic downturn. Now, the demand for jobs has increased which decreases the benefit of the college degree as people are more willing to accept lower pay in order to have some pay at all. In the next few years, college graduates will be faced with the worst job market in many years. Yet, the economy is cyclical and perhaps in the future the rewards for college degree may again be higher than the cost of their schooling.

Second, there are now more college students than ever. Education has been a focus over the past couple of decades. Now, anyone can get a college degree. With the proliferation of student loans and grants, the flood of people who, in the past, could not afford college has been almost eliminated. With that in mind and the money that can be made, schools have lowered their standards in an effort to get more students through the program. Now, we have college students that have less of an education at higher costs competing for the same jobs and with the same degree than someone who had a much harder time but received a better quality education.

In the end, a college education may get you into the door of a company but in general, what you do for the company while you work there is much more important to them than any degree. It is the ability to adapt to changing situations that is in demand. In the future, the demand for more education may again be of utmost importance. Right now, in many cases, the survival of a company itself may not mean hiring those with advanced educations but those with proven experience knowledge of internal processes.

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