Report Helps Answer the Question: Is a College Degree Worth the Cost?

Most people go to college to improve their financial prospects, though there are other benefits to attending a postsecondary institution. But as the average cost of a four-year degree has risen to six figures, even at public universities, it can be hard to know if the money is well spent.

A new analysis by HEA Group, a research and consulting firm focused on college access and success, may help answer the question for students and their families. The study compares the median earnings of former college students, 10 years after they enrolled, with basic income benchmarks.

The analysis found that a majority of colleges exceed minimum economic measures for their graduates, like having a typical annual income that is more than that of a high school graduate with no higher education ($32,000, per federal Scorecard data).

Still, more than 1,000 schools fell short of that threshold, though many of them were for-profit colleges concentrating in short-term credentials rather than traditional four-year degrees.

Seeing whether a college’s former students are earning “reasonable” incomes, said Michael Itzkowitz, HEA Group’s founder and president, can help people weigh whether they want to cross some institutions off their list. Someone deciding between similar colleges, for example, can see the institution that has produced students with significantly higher incomes.

While income isn’t necessarily the only criteria to consider when comparing schools, Mr. Itzkowitz said, “it’s a very good starting point.”