| The costs of education are rising at an alarming rate. With more people attending degree programs, colleges have been increasing the costs as the demand rises (Reynolds, 1997; Churches, 2000). Loans are becoming more common for students and many leave college with a degree and a very large debt. As an individual achieves a higher educational level (from High School to BS/A to MBA to DBA/PhD), however, the likelihood that the cost of education outweighs the person's lifetime salary increases. This may be especially true in light of missed opportunities, while an individual goes to school.; The rate at which a graduate reaches the point when salary exceeds the cost of education (referred to here as "salary maximization") is influenced by many factors. Some of these include, the school attended, whether the student had loans due upon graduation, the interest rate on those loans, the program of study, the level of education (BS/A, MBA, DBA and/or PhD), whether the student completed the studies consecutively or non-consecutively, whether the student was employed while in school, and where the graduate chooses to live and work after graduation.; The purpose of the present study was to determine whether it is worth it, financially, for a student to get a higher education as compared to just simply working. An additional purpose was to gain an understanding of the costs of education as relates to the potential lifetime earnings of the subjects.; Previous studies have examined the increasing costs of an education. While others have focused on the salaries of graduating students and industry pay norms. The present study merged these two perspectives, costs and earnings, and determined the point at which education becomes an expense that cannot be earned back, as opposed to a simple salary maximization tool.; This analysis was conducted utilizing a pilot study followed by a primary study in order to obtain an understanding of the value of an educational degree. It was noted that those respondents who hold higher degrees have higher educational costs, that the salary received will not outweigh the cost, a significant relationship was noted between cost and salary, and the costs of the education increase at a faster rate than the salary.; The practical implications of these findings are discussed. In addition, future research recommendations are outlined. |
