Making College Pay: An Economist Explains How to Make a Smart Bet on Higher Education

The cost of college makes for frightening headlines and politics. The outstanding balance of student loans in the United States is over $1.5 trillion, while sticker prices continue to rise. Add the fact that, at least for the foreseeable future, your tuition buys an online-only learning experience, it's no wonder so many of us are left wondering: Is college really worth it?

When viewed through an economic lens, the answer is yes, says expert Elizabeth Akers. Because the true value of a degree lies not in the experience, but in the credential: the average college graduate earns almost a million dollars more over the course of their career than someone with just a high school diploma, and a degree from even the most expensive four-year institution delivers a 15 percent return on investment--double that of the stock market. And despite the stories about burdensome student debt, most graduates actually owe very little in monthly payments, relative to their income.

The problem with college, Akers argues, isn't the price; it's the risk of your investment not paying off. In Making College Pay, she offers surprising strategies for navigating the tough choices and avoiding the common pitfalls, such as:
- Why choosing the right major matters more than where you enroll
- The best metric for picking a college (not prestige, selectivity, or ranking).
- Why borrowing isn't bad, and in fact, is smarter than paying outright, even for students who can afford it.
- How to minimize your risk by utilizing little-known programs like money-back guarantees and income-sharing agreements.

Full of practical advice for students and parents, Making College Pay reaffirms the promise of higher education as an engine for upward mobility and prosperity in America.