Overview

• The New York Federal Reserve confirms that college graduates earn a median annual income of $80,000, significantly higher than the $47,000 median for high school graduates.
• Key factors that reduce the return on investment include extended time to graduation, selection of low-paying majors, and high costs of on-campus living.
• As many as 25% of college graduates enter low-paying jobs where the financial payoff of a degree is limited, according to Federal Reserve findings.
• Rising tuition and declining financial aid have increased the financial burden on families, with 48% of college expenses now covered by family income and investments, up from 38% a decade ago.
• Shorter-term certificate programs are gaining popularity as students prioritize lower costs and quicker workforce entry over traditional degrees.