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Why College?

The Benefits of Education Beyond High School

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The Questions

National & Statewide Trends

Financial Benefits

Other Benefits

Post-Secondary Pathways

Opportunities

Q&A

Agenda

Is college still worth it anymore?

Why go to college when we need people in the

workforce now?

Do students need a degree to be successful?

The Question(s)

The Hype

Let’s set the stage by

looking at national

and state data and

trends

National Trends

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

5000000

SU

M

YEAR

U.S. Births and Deaths By Year

Sum of Live Births

Sum of Deaths

Source: US Census Data, National Vital

Statistics Report

National Data2012-2016 American Community Survey 5-

Year Estimates

Population Trends – 2003 to 2032

• Population 65 and older 166,000 & under 65 172,000

• Highest median age in the nation- 45; national is 37

• Mortality rates exceeding birth rates

• Net-zero in-migration

660,000 current workers

• 42% have a credential of value

157,000 new workers are needed in order to

keep Maine’s economy going by 2025

A Sense of Urgency

for Maine

The Urgency

Maine Data

Maine & Nation

MaineSpark.me

Let’s begin to answer the broad

question, Why College?

Patterns

https://www.zippia.com/advice/common-

jobs-every-education-level/

Borrowing too much

$$$$

Compare cost to income

CareerOneStop.org

CareerOneStop.org

Next Level

CareerOneStop.org

$46,240-$26,980=$19,260

We’ll keep going on

the financial

benefits first

Regardless of family education or financial

background, a significant number of young

adults aged 22 to 35 (41%) who completed a

degree are financially healthier than those who

didn't attend college, according to a new report.

• Degree holders are 84% more likely to have a job

than those without a degree

• 70% more likely to be working full time than non-

degree holders

Financial Benefits

https://www.navient.com/assets/about/who

-we-are/Money-Under-35-report-2017.pdf

Income/Unemployment rate

by degree

US Dept. of Labor – Bureau of Labor & Statistics www.bls.gov/emp/ep_chart_001.htm

Remember the question: why go to college

when we need people in the workforce?

Based on the information in the previous slide, folks are

less likely to even be able to enter the workforce

without a degree!

We need people to do both!

Adults with only a high school education earned

an average of $35,615 in 2016, according to

the Census figures.

Those who had a college degree earned an

average of $65,482 in the same year.

Financial Benefits

http://thehill.com/homenews/state-

watch/326995-census-more-americans-

have-college-degrees-than-ever-before

Education Pays

https://www.luminafoundation.org/resources/its-not-just-

the-money

From the ED

Over the course of a lifetime, the average worker with

a bachelor’s degree will earn approximately $1 million

more than a worker without a postsecondary education.

By 2020, an estimated two-thirds of job openings will

require postsecondary education or training.

Maine EARNS

Maine Data

https://www.maine.gov/labor/cwri/mainee

arns/

Return on Investment

Some may argue the price of

college negates its value (is it

worth it?), so let’s take a look at

that in terms of return on

investment by examining net price

and return on investment

What is Net Price?

• The NPC will tell you the estimated out of pocket net

price to attend after scholarships & aid.

• Every school is required to have a Net Price

Calculator (NPC)

• Cost listed on school website is the “sticker price.”

o Very few people ever pay the full sticker price

o The NPC will tell you the net price (out of pocket)

Net Price Calculator

Return on Investment

Cost for education:

Net Price @ USM $8612 X 4 years = $34,448

18 yo, 3.5 GPA, $0 EFC, nursing program

Projected Income (Careeronestop.org):

$46,400 - $74,700 per year

$46,400 income / $34,448 cost = 135% return on investment

The benefits of

education after high

school go beyond

income!

Preparation

Lifespan

High school graduates have a mortality rate that is

DOUBLE those with some college or a college degree,

according to Brookings Institute report.

Degree holders are less likely to smoke and/or be

obese and therefore, have a longer lifespan!

Education is, literally, life!

Benefits

Homeownership

Bachelor Degree holders are likely to make more in earnings and less likely to be unemployed than just completing high school BUT ALSO:

47% more likely to have health insurance

Better health

More likely to participate in community activities

More likely to be married

More likelihood of exercise and healthy diet

Increased life expectancy

likelihood of being happy is significantly higher

In Summary...

GREATER

EARNINGS

OTHER BENEFITS

So, how do students

get there?

Pathways

For many, education is not a straight line; it

meanders

Pathways

Traditional ways of thinking assume students must

go to 4 year college right after high school in

order to achieve success

• This sets up limitations for many students

• The idea of 4-year degrees is intimidating

• Ignores the multitude of ways to earn a

credential of value

Options

Trade programs of 1 year or less

Associates degrees or Certificates earned in 2-4

years

Bachelor’s degrees in 4-6 years

OR

Options

The 1+1 +2 punch: Certificate, plus 1 year to

earn Associates, plus 2 years to earn Bachelor’s

The 2+2 combo move: 2 years community

college, 2 years at four-year institution

Back to back knock-out or with years in-between

It turns out, most Americans

do value a college

education!

The Reality

Even among students who borrowed, a college

education was a worthwhile investment

The Reality

Opportunities for Maine

students to earn

credentials exist…

Opportunities

It might be affordable

Employers paying

Live & Work in Maine

Alfond Leaders

See NextStepMaine.org for a list of

Maine Employers

Maine Options

Employers Can Help

More & more businesses and companies are

offering tuition assistance

• Some have the added bonus of internships

and guaranteed job placement

Encourage students to ask about this as they

work during high school and when they begin the

job search

• Ask parents’ employer(s)

Tuition Assistance

Live & Work in Maine

Program that provides

up to $60,00 student

loan repayment

assistance

Workers in STEM jobs in

Maine

Commitment to living in

Maine for 6 years

Alfond Leaders

In Closing…

Maine needs people educated beyond high

school

Obtaining a post-secondary credential has

multiple benefits

Multiple affordable pathways exist in Maine to

help students earn credentials of value

FAME and its partners can help!

Finance Authority of Maine

5 Community Drive

P.O. Box 949

Augusta, ME 04332

1-800-228-3734

TTY: 207-626-2717

education@FAMEmaine.com

FAMEmaine.com

Questions?