why college? the benefits of education beyond high school · the 2+2 combo move: 2 years community...
TRANSCRIPT
Copyright ® 2018 Finance Authority of Maine
Why College?
The Benefits of Education Beyond High School
LIKE US ON FACEBOOK: FAME Education
for weekly scholarship and financial aid information
The Questions
National & Statewide Trends
Financial Benefits
Other Benefits
Post-Secondary Pathways
Opportunities
Q&A
Agenda
Is college still worth it anymore?
Why go to college when we need people in the
workforce now?
Do students need a degree to be successful?
The Question(s)
The Hype
Let’s set the stage by
looking at national
and state data and
trends
National Trends
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
5000000
SU
M
YEAR
U.S. Births and Deaths By Year
Sum of Live Births
Sum of Deaths
Source: US Census Data, National Vital
Statistics Report
National Data2012-2016 American Community Survey 5-
Year Estimates
Population Trends – 2003 to 2032
• Population 65 and older 166,000 & under 65 172,000
• Highest median age in the nation- 45; national is 37
• Mortality rates exceeding birth rates
• Net-zero in-migration
660,000 current workers
• 42% have a credential of value
157,000 new workers are needed in order to
keep Maine’s economy going by 2025
A Sense of Urgency
for Maine
The Urgency
Maine Data
Maine & Nation
MaineSpark.me
Let’s begin to answer the broad
question, Why College?
Patterns
https://www.zippia.com/advice/common-
jobs-every-education-level/
Borrowing too much
$$$$
Compare cost to income
CareerOneStop.org
CareerOneStop.org
Next Level
CareerOneStop.org
$46,240-$26,980=$19,260
We’ll keep going on
the financial
benefits first
Regardless of family education or financial
background, a significant number of young
adults aged 22 to 35 (41%) who completed a
degree are financially healthier than those who
didn't attend college, according to a new report.
• Degree holders are 84% more likely to have a job
than those without a degree
• 70% more likely to be working full time than non-
degree holders
Financial Benefits
https://www.navient.com/assets/about/who
-we-are/Money-Under-35-report-2017.pdf
Income/Unemployment rate
by degree
US Dept. of Labor – Bureau of Labor & Statistics www.bls.gov/emp/ep_chart_001.htm
Remember the question: why go to college
when we need people in the workforce?
Based on the information in the previous slide, folks are
less likely to even be able to enter the workforce
without a degree!
We need people to do both!
Adults with only a high school education earned
an average of $35,615 in 2016, according to
the Census figures.
Those who had a college degree earned an
average of $65,482 in the same year.
Financial Benefits
http://thehill.com/homenews/state-
watch/326995-census-more-americans-
have-college-degrees-than-ever-before
Education Pays
https://www.luminafoundation.org/resources/its-not-just-
the-money
From the ED
Over the course of a lifetime, the average worker with
a bachelor’s degree will earn approximately $1 million
more than a worker without a postsecondary education.
By 2020, an estimated two-thirds of job openings will
require postsecondary education or training.
Maine EARNS
Maine Data
https://www.maine.gov/labor/cwri/mainee
arns/
Return on Investment
Some may argue the price of
college negates its value (is it
worth it?), so let’s take a look at
that in terms of return on
investment by examining net price
and return on investment
What is Net Price?
• The NPC will tell you the estimated out of pocket net
price to attend after scholarships & aid.
• Every school is required to have a Net Price
Calculator (NPC)
• Cost listed on school website is the “sticker price.”
o Very few people ever pay the full sticker price
o The NPC will tell you the net price (out of pocket)
Net Price Calculator
Return on Investment
Cost for education:
Net Price @ USM $8612 X 4 years = $34,448
18 yo, 3.5 GPA, $0 EFC, nursing program
Projected Income (Careeronestop.org):
$46,400 - $74,700 per year
$46,400 income / $34,448 cost = 135% return on investment
The benefits of
education after high
school go beyond
income!
Preparation
Lifespan
High school graduates have a mortality rate that is
DOUBLE those with some college or a college degree,
according to Brookings Institute report.
Degree holders are less likely to smoke and/or be
obese and therefore, have a longer lifespan!
Education is, literally, life!
Benefits
Homeownership
Bachelor Degree holders are likely to make more in earnings and less likely to be unemployed than just completing high school BUT ALSO:
47% more likely to have health insurance
Better health
More likely to participate in community activities
More likely to be married
More likelihood of exercise and healthy diet
Increased life expectancy
likelihood of being happy is significantly higher
In Summary...
GREATER
EARNINGS
OTHER BENEFITS
So, how do students
get there?
Pathways
For many, education is not a straight line; it
meanders
Pathways
Traditional ways of thinking assume students must
go to 4 year college right after high school in
order to achieve success
• This sets up limitations for many students
• The idea of 4-year degrees is intimidating
• Ignores the multitude of ways to earn a
credential of value
Options
Trade programs of 1 year or less
Associates degrees or Certificates earned in 2-4
years
Bachelor’s degrees in 4-6 years
OR
Options
The 1+1 +2 punch: Certificate, plus 1 year to
earn Associates, plus 2 years to earn Bachelor’s
The 2+2 combo move: 2 years community
college, 2 years at four-year institution
Back to back knock-out or with years in-between
It turns out, most Americans
do value a college
education!
The Reality
Even among students who borrowed, a college
education was a worthwhile investment
The Reality
Opportunities for Maine
students to earn
credentials exist…
Opportunities
It might be affordable
Employers paying
Live & Work in Maine
Alfond Leaders
See NextStepMaine.org for a list of
Maine Employers
Maine Options
Employers Can Help
More & more businesses and companies are
offering tuition assistance
• Some have the added bonus of internships
and guaranteed job placement
Encourage students to ask about this as they
work during high school and when they begin the
job search
• Ask parents’ employer(s)
Tuition Assistance
Live & Work in Maine
Program that provides
up to $60,00 student
loan repayment
assistance
Workers in STEM jobs in
Maine
Commitment to living in
Maine for 6 years
Alfond Leaders
In Closing…
Maine needs people educated beyond high
school
Obtaining a post-secondary credential has
multiple benefits
Multiple affordable pathways exist in Maine to
help students earn credentials of value
FAME and its partners can help!
Finance Authority of Maine
5 Community Drive
P.O. Box 949
Augusta, ME 04332
1-800-228-3734
TTY: 207-626-2717
FAMEmaine.com
Questions?