The Financial Value of Postsecondary Education

Abstract

Earning a postsecondary degree involves paying for tuition, fees, books, supplies, and living costs. While in school students forgo full-time job earnings; and, after earning a degree, they may pay interest on student loans for many years. This study examines 115 Wisconsin degree/school combinations to identify the value remaining after paying the costs of a postsecondary degree - the Education Value that is above and beyond what they would have earned with a high school diploma. We find the best combination delivers an additional $1,694,086 in value across a lifetime, and the least value-added bachelor’s degree combination still delivers $378,466. All combinations are investments in human capital that significantly outperform the long-term average of the U.S. stock market and may be the best investment many people ever make.