Question

What determines the value of a college? Is the cost of a "prestigious" college worth the price? Why or why not?

Answer 1

Factors that determine the value of a college:

Academic Performance and Learing: While college degrees do not say much about student performance, transcripts and records do, providing prospective employees an indication about student intelligence and commitment to coursework

Major Subjects: As demand and supply conditions differ across majors. Median earnings can differ depending on subject of major.

Reputation of the college attended: Students enrolled in top colleges earn, in some cases, 20% more than students who enrolled in lower ranking schools

Is cost of a "prestigious" college worth the price? Yes

The sluggish economy and rising costs of college have only intensified questions about whether expensive, prestigious colleges make any difference.

However, Economic research does suggest that elite schools can make a difference in income and graduate school placement. Those who attended top schools earn 12 percent more than their peers who went to schools that were in the middle of the pack. And grads from those mid-tier institutions earned 6 percent more than their peers who went to the least-selective schools. School choice is more important since selective schools provide access to the companies and individuals necessary to further one’s career.