Researchers at Washington University in St. Louis and the University of North Carolina used national credit bureau data and the National Student Clearinghouse. They developed a measure called "debt-adjusted earnings" to show how loan payments change immediate financial gains from higher education.
The main result is that degree holders earn on average $8,000 more per year than similar people who did not finish college. Without student loan payments, the average earnings premium is $10,400 per year. The study also finds that associate degree holders spend about 9% of extra earnings on loan payments, bachelor's holders 19%, and master's holders 57%.
Difficult words
- degree — A level of education from a school.degrees
- benefit — An advantage or good effect.benefits
- earn — To receive money for work done.
- complete — To finish something.completing
- policy — A plan or rule for decision making.policies
- emphasize — To give special importance to something.emphasizes
Tip: hover, focus or tap highlighted words in the article to see quick definitions while you read or listen.
Discussion questions
- Why do you think completing a degree is important?
- What policies could help students finish their degrees?
- How do financial benefits affect a student's choice to pursue a degree?
Related articles
Clean water reduces child stunting in Mozambique
A University of Notre Dame study using national survey data finds that improved access to safe drinking water lowers the odds of stunting in Mozambican children by about 20%. Improved sanitation showed no independent effect on stunting.
Indigenous leader Dzoodzo Baniwa wins climate award
Dzoodzo Baniwa, from the Alto Río Negro territory in Amazonas, won a Bunge Foundation award for work on the climate emergency and practical agricultural science solutions. The prize highlights links between indigenous knowledge and scientific practice.
