The Value Argument for an Online College Degree
February 1, 2009
In November of 2008, the U.S. News and World Report estimated the average net present value of a four-year college degree is around $300,000. Of course, graduates with career-related degrees like Business, Nursing, and Technology will find the value of their degrees will be much greater compared graduates in Humanities or History. On average, however, a $300,000 estimate is reasonable. Now let’s look at the cost side of equation.
The average cost of a four-degree for tuition, fees, and related expenses could easily reach $60,000. But the range is quite wide from around $40,000 for in-state tuition, fees, and expenses at a public university to more than $100,000 for many private universities. So even if you pay $75,000 to $100,000 for your degree, it is a very good investment.
But now let’s compare these costs to online learning. First, the tuition for online learning is less. An online degree from a DETC-accredited school can be found for around $37,000. I would estimate the average four-year online degree costs about 25% less than a traditional university – but that isn’t the whole economic story.
If you attend an online university, you can take courses and complete assignments on your schedule without those time-consuming trips to and from campus. For many online students, this means you can work and earn while completing your degree. Of course you can also work while attending a traditional university, but you will be much more constrained due to your rigid schedule and travel time. This means online students have more time and greater flexibility to earn more money while they pursue an online degree. How much more can an online student earn? You can easily make the case that an online student can earn an extra $7,000 to $8,000 a year more than a student at a traditional university for the reasons previously cited – more free time and schedule flexibility. This amount is almost equal to the full-time tuition at some online universities.
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