While economic outcomes for young adults have improved over the past decade, including those without a college degree, there's an ongoing debate on the value of a four-year college education, according to a recent survey by the Pew Research Center.
According to the research, individuals aged 25 to 34 without a college degree have seen both their earnings and overall wealth rise over the past ten years. Despite these improvements, the earnings gap between young adults with and without college degrees hasn't narrowed that much.
The survey reveals that Americans are split on whether you need a college degree to get a well-paying job. Only 25 percent of U.S. adults believe it is extremely or very important to have a four-year college degree to succeed in today’s economy. Approximately 35 percent consider it somewhat important, while 40 percent think it's not too important or not important at all.
Nearly half (49 percent) of the respondents feel that having a four-year college degree is less critical to get well-paying employment now compared to 20 years ago. In contrast, one-third (32 percent) believe earning a sheepskin is more important today, and 17 percent think it's just as important now as in the past.
Opinions on the cost of higher education also vary. Only 22 percent of Americans think the expense of a four-year college degree is worth it, even if it involves taking on debt. About 47 percent say it's only worthwhile if loans are not necessary, and 29 percent argue that the cost is not justified under any circumstances. Among college graduates, only 32 percent feel that the cost of their education is worth it if loans are involved.
Student debt has emerged as a hot-button issue in recent years, and the administration under President Joe Biden has been taking progressive steps to tackle the problem for everyday Americans. In a statement Wednesday, it announced the cancellation of another $7.7 billion in student debt, aiding 160,000 borrowers including people enrolled in the SAVE plan, public service workers, and those eligible for relief under fixes made to Income-Driven Repayment.
"Four-year college graduates are much more likely than those without a college degree to say their education was extremely or very useful in giving them the skills and knowledge they needed to get a well-paying job," Pew reports. Specifically, 58 percent of college graduates found their degree extremely or very useful, compared to just 26 percent of those without a degree.
As the debate over the value of higher education continues, government data analyzed by the Pew Research Center shows positive trends for young adults without degrees.
After declining since the mid-1970s, it found medial annual earnings among male 25- to 34-year-old non-college graduates have begun to rise over the past decade. Young men have seen a turnaround in their earnings since 2014, whether they have some college education or only a high school diploma. Still, their earnings are still below levels from the early 1970s.
Meanwhile, young women without college degrees experienced relatively stagnant earnings from 1970 until about ten years ago, according to Pew's analysis. Over the past decade, it found median annual earnings for 25- to 34-year-old women, with or without college degrees, have increased.
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