Darren Tsai
With the rising costs of higher education and an evolving job market, the question of whether college is worth the investment has become increasingly pressing for many students and their families. To explore this topic further, I spoke with Neroll Austin, an Assistant Professor of Finance at the University of Michigan's Ross School of Business. Professor Austin brings a wealth of experience in finance and education, holding degrees from the University of Sydney, the University of Canterbury, and a PhD from the University of Oxford.
The traditional idea of going to college to secure a stable career is being questioned more than ever before. According to Austin, “The job market has changed significantly over the past decade. While a college degree still offers advantages, it’s not the sole pathway to success.” She points out that some industries now value skills and experience as much as, if not more than, formal education. With the rise of technology and the gig economy, coding boot camps, online certifications, and apprenticeships are becoming increasingly popular alternatives.
This shift raises an important question: is college still worth the considerable investment of time and money? As Austin explains, it depends on an individual’s career goals, interests, and financial situation. “For fields like engineering, medicine, or law, a degree remains essential,” she noted. “However, for creative industries, tech startups, and even some business roles, experience, networking, and a strong portfolio can be just as impactful.” In essence, the decision should be made based on both the career trajectory one aspires to and the return on investment they expect.
The cost of higher education has been one of the major deterrents for many prospective students. Austin highlights that student debt has reached unprecedented levels, affecting graduates’ financial stability for years. “It’s not just about the tuition fees; it’s the opportunity cost as well,” she said. “When you spend four years in college, you’re not only paying for education but also losing potential income that could be earned during that time.” This makes the financial aspect of the decision even more critical, particularly for those who might pursue majors with lower starting salaries.
As I reflected on Austin’s insights, it became clear that students need to be more strategic than ever in planning their educational journeys. The rising cost of college calls for careful consideration of not just what to study, but where to study and how to finance it. Choosing in-demand fields or pursuing scholarships, grants, and work-study programs can help mitigate the financial burden. Meanwhile, exploring internships and real-world projects during college can make graduates more competitive when entering the job market.
But college isn’t just about financial returns. It’s also a time for personal growth, networking, and broadening perspectives. “One of the most underrated benefits of college is the network you build,” Austin pointed out. “Many successful entrepreneurs and professionals owe much of their career growth to connections made during their college years.” She emphasized that the value of these relationships can extend far beyond job opportunities, often influencing entrepreneurial ventures, collaborations, and lifelong friendships.
This highlights a fundamental consideration: the non-monetary benefits of a college experience. While college may not be the only route to career success, it offers a structured environment for intellectual and personal development. For many, the chance to explore different fields of study, participate in clubs, and engage with diverse perspectives can be just as valuable as the academic knowledge gained.
However, Austin also acknowledges that college is not the right choice for everyone. “We need to recognize that success comes in many forms,” she said. “Trade schools, apprenticeships, and self-taught skills can lead to fulfilling and lucrative careers without the significant debt associated with a four-year degree.” As a result, more students are considering these alternative pathways, especially in fields like software development, skilled trades, and digital marketing, where hands-on experience often matters more than formal credentials.
Given these insights, how can prospective students make the best decision for their future? Austin suggests starting with self-reflection. “Understand your strengths, interests, and long-term goals,” she advised. “If your desired field requires a degree, focus on making the most of the college experience through internships, networking, and skills development. If not, explore certifications, boot camps, or even launching your own venture.” The key is to align one’s education with career aspirations and financial realities, ensuring that the chosen path provides both personal fulfillment and financial stability.