Is Beginning a BA Program a Good Investment?

By Jonathan Kantrowitz. Using data from California’s higher education systems, this paper estimates individuals’ and society’s economic returns to a Bachelor’s (BA) degree and evaluates the quality as an investment of a beginning a BA program .
Most studies of the rate of return to college use a best-case scenario in which students earn a degree with certainty in four years. More realistic calculations that account for students who take more than four years and students who drop out without a degree, etc. result in an average rate of return that is lower than it was in 2000 but still exceeds the interest rate on unsubsidized Stafford student loans – i.e. college remains a good investment by the normal criteria. More...