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February is Financial Aid Awareness Month, a time when many in the higher education community provide crucial information to students and families about access to federal, state and institutional aid. To cap off the month, we spoke with Jim Leaman, director of the Business and Leadership Program at EMU, about the financial value and affordability of a college degree.

It鈥檚 probably no surprise that the time and money spent on a college degree is one of the best investments you can make in your lifetime. But, seeing the raw numbers 鈥� just how much more money a college graduate earns versus someone with only a high school diploma 鈥� can be eye-opening.

On average, college graduates with a bachelor鈥檚 degree earn $580 more per week, or $2,500 more per month, than those with a high school diploma. That鈥檚 according to Jim Leaman, director of the Business and Leadership Program at EMU, who crunched the numbers from the U.S. Bureau of Labor Statistics. Leaman delivered a presentation on his findings at EMU鈥檚 Admitted Student Day earlier this month.

Paying it back ‘pretty easy’

The average total debt for EMU graduates who have taken out loans is $35,000. For those graduates, their increased earnings 鈥� $30,000 more per year than high school graduates 鈥� make it 鈥減retty easy to service that debt load,鈥� Leaman said.

鈥淭hat $35,000 debt feels like a lot to a 22-year-old coming out of college who’s just getting started in their career; it feels enormous,鈥� he said. 鈥淏ut, I鈥檇 much rather be in that position than not having gone to college, from a financial standpoint.鈥�

EMU鈥檚 average student loan debt among all borrowers ($35,000)
is slightly lower than the national average ($38,290),

National average numbers taken from a recent CNN report.

With the current 5.5% interest rate on subsidized loans, the cost of repaying $35,000 in student loan debt over 20 years equates to a $240 payment each month, Leaman said. 

鈥淚f you鈥檙e making $2,500 more per month because you have a bachelor鈥檚 degree, you鈥檙e very willing to have a $240-per-month expenditure on your debt,鈥� he said. 鈥淵ou very easily make that trade-off.鈥�        

And, that鈥檚 just for graduates who carry on debt. Roughly 28% of students leave EMU without borrowing money, he added.

Financial aid and scholarships keep the cost of a college education affordable for students at EMU. You can contribute to these scholarships by participating in our upcoming LovEMU Giving Day on Wednesday, April 10.

Earning a four-year degree is still relatively rare. Only 33% of the U.S. labor force has at least a bachelor鈥檚 degree. And, it鈥檚 still something employers value. According to 2022 BLS statistics, the unemployment rate for those with a bachelor鈥檚 degree was 2.2%, compared to a 4% rate for those with a high school diploma. 

More than money

Of course, the benefits of a college education extend past a salary. 

Students at EMU explore big questions of faith and meaning, develop social skills, discover their passions, gain confidence and mature in just about every way imaginable. Graduates also are more likely to live longer.

found that 25-year-old Americans who graduated college have about 58 years of life remaining (for a life expectancy of 83 years). Their peers who lack a college degree have about 50 years of life left after 25 (a life expectancy of 75 years).

Likely culprits behind this mortality gap include: differential access to health care, a greater likelihood of unhealthy behaviors among people without college degrees, a difference in the safety of living environments, and more “deaths of despair” involving suicide, drug overdoses and alcoholism, .

So, what’s not to love about investing in a college degree? In addition to gaining all the skills needed to become contributing members of society, college graduates earn significantly more, live nearly a decade longer, and 鈥� at least for EMU grads 鈥� are well-positioned to pay off their debt.

鈥淭he moral of the story,” said Leaman, “is that education is a fantastic investment.”