Topic 6: Opportunity Cost of a College Education

Topic 6: Opportunity Cost of a College Education

Marginal Analysis is the evaluation of how much benefit you get for one more increment of doing something. The marginal cost of another year of higher education is the 1 year of time, the money that you could spend on a house or a car, and the opportunity of getting a manual labor job which would pay $12-$20 an hour. No, because those who go to college already have a will to do better than those who don't go to college, so they will naturally do better regardless of a degree. Some students leave college after 1 year because they can't afford the tuition because they have run out of their funds and the cost of paying the future years outweighs the benefits. The debt will incur a higher interest rate and you might realize that even after you get your college degree, you won't earn enough money to pay it back and it ends up losing money and not gaining money. My parents have always told me that going to college will get me a better life. This video has not changed my attitude because it depends on what these people are going to college for. Personally, I'm going into the Finance and Business industry which is not so much dependent on the teaching as my own ability to sell myself to my boss. So this information doesn't affect my attitude or decisions at all.