The US Department of Education has recently blogged about the benefits of higher education within their country. Some of the points made in the post are not particularly surprising, but it does serve to reinforce the notion that achieving a higher level of training/competency will result in greater job opportunities, as well as higher average pay.
I found this image to be particularly useful in illustrating the point. Higher education doesn’t really increase the probability that one will stay in the same pay bracket as her or his parents (26% with or without a college degree), but the chances of moving to an even higher back bracket are significant, meaning fewer college graduates will fall below the income level of their parents.
The Obama administration has done a number of things to improve the situation for college students in an attempt to encourage greater numbers of post-secondary enrollments:
- Raising Pell Grants
- Creating an American Opportunity Tax Credit
- Keeping Stafford Loan interest rates low for another year
- Expanding “income-based repayment” to 10% rather than 15% of discretionary income
(Source: The US Department of Education Blog)