I read an interesting article written by Scott Burns in the Seattle Times on Sunday. He discusses if people who go to college are really in a better financial situation than people who go into the workforce right from high school. The socially correct side to this debate is always “people who go to college earn more money, so of course it is the best option.”

NOT SO FAST, says Burns.

Take into account the costs of paying back student loans and we have a slightly more interesting debate.

Studies show that the median high school graduate earns about $26k by the time he is 25 years old, while the median income for college graduates is about $42k by 25 years old. The college graduate is making $16k more a year BUT those loans are still hanging over their heads. Plus, he/she must pay higher taxes, get less bang for the buck through social security, and get less from Medicare (assuming these government benefits still exist in 30 years).

I will leave the heavy math for the experts, but using these numbers it will take 14 years for the college grad to earn more net income than the high school grad. This is not something they will tell you as you line up to register for freshman classes.

Bottom Line:

Should this deter you from going to college? NO

Should you be concerned with these numbers, and the amount of debt a college education can create? Most Definitely