A recent study by the U.S. Department of the Treasury ofers good news to those wondering if earning a degree is worth the cost. The study found not only can you increase your chance of earning more money with a degree, you can also lower your risk of unemployment.

Advanced degrees (e.g., bachelor’s, master’s, or doctorate) cut the unemployment rate in half, according to the study.

The CollegeTreasury reported that people in the United States without a high school diploma suffered an unemployment rate of 14.1%, and their average weekly salary was $450 (for an annual salary of $21,600). Unemployment rates for those with a bachelor’s degree were significantly less (4.9%) and their average weekly earnings were $1,053. Individuals with a doctorate had an unemployment rate of 2.5% and median weekly earnings of $1,551. Currently, the unemployment rate in the U.S. is approximately 7.7%.

The study also showed 55% of degree holders were able to surpass their parents’ income, 26% remained at the same level, and 19% made less.

The Cost of Higher Education Is Still on the Rise

Although the generation now entering the workforce makes more money than their parents, the cost of higher education continues to rise. Also, students are burdened with higher student loans and more debt than previous generations of parents and siblings.

As evidence, the U.S. Treasury study reported the tuition of many public universities increased by 67% between 2000 and 2011.

In 2009, local and state governments paid 40 cents of every dollar on students attending public, four-year schools, a considerable decrease from the 60 cents of every dollar in 1987.

Funding from local and state governments has also declined by a considerable margin. For example, in 2007, these entities paid 40 cents of every dollar for students who attend public, four-year school, whereas the government paid 60 cents of every dollar in 1987.

Over the same time period, funding shrank from $10,726 to $8,655 on a per-student basis.

Lowering the Cost of Education

In an effort to lower the high costs of tuition, the Obama administration has taken the following measures:

  • Increased the maximum Pell Grant from $4,731 in 2008 to $5,550 in 2010
  • Replaced the Hope Credit ($1,800) with the American Opportunity Tax Credit ($2,500)
  • Extended the 3.4% interest rate for subsidized Stafford loans for another year
  • Expanded its income-based repayment program to assist students in their education loan repayments

The Treasury report supports the idea higher education is worth the effort. Despite the rising costs of education, where the competition is stiff, higher education can be important not only for your personal bottom line but also your chances for employment.

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