Another problem with a pure financial projection is that it does not fully consider opportunity cost. The cost/benefit is not simply the difference in earnings, minus tuition, interest, missed earnings and investment on earnings.
The real cost is that being in debt limits your options to pursue possibly more lucrative opportunities, or to enjoy your life outside the system. The better term would be liquidity cost. Every one of us will at some point come across a great investment opportunity. Every one of us can have an idea we would like to pursue. But an employee fully loaded with college debt, added with mortgage and kids, can't afford to do anything else but add to a 401k each paycheck.
Furthermore, every financial investment should have a healthy margin of error to compensate you for risk. This should be at even higher margins when the more leveraged you are. Things like college and a mortgage are a total leverage of your earnings potential as an employee. Thus the question isn't whether college is merely worth it. The question should be if college is totally a no-brainer as an investment.
Interesting point. While college gives you a better chance of a regular salary, it pretty much disables you from taking advantage of BIG (albeit risky) opportunities and thus in a way limit your returns. But isn't that how all financial instruments work? You always have to sacrifice a portion of your potential returns to decrease risk.
(look up derivative market and hedging your position etc)
The real cost is that being in debt limits your options to pursue possibly more lucrative opportunities, or to enjoy your life outside the system. The better term would be liquidity cost. Every one of us will at some point come across a great investment opportunity. Every one of us can have an idea we would like to pursue. But an employee fully loaded with college debt, added with mortgage and kids, can't afford to do anything else but add to a 401k each paycheck.
Furthermore, every financial investment should have a healthy margin of error to compensate you for risk. This should be at even higher margins when the more leveraged you are. Things like college and a mortgage are a total leverage of your earnings potential as an employee. Thus the question isn't whether college is merely worth it. The question should be if college is totally a no-brainer as an investment.
And it looks like it's not anymore.