Is a College Degree Worth Money, Time Invested?

In her job, Alisha Lewis of Little Rock talks about the value of higher education to a young audience, and at least some are a little skeptical of the message.

She works as assistant commissioner for operations and communications for the Arkansas Division of Higher Education. The state agency’s mission is to advocate for higher education and assist institutions in improving delivery of services to Arkansans, according to its website.

People need to understand that higher education includes many paths, Lewis said, not just a four-year degree.

“We spend a lot of time saying higher education is flexible for you,” Lewis said. “There are multiple on and off ramps. It can be a technical program where you use your hands. You create your own opportunities.”

For herself, Lewis experiences firsthand the value of higher education, using skills and knowledge she gained from a master’s degree to do her job. She earned a Master of Science in Operations Management delivered online by the University of Arkansas in 2015.

“I wanted to understand systems, procedures and logistics,” Lewis said. “And, I knew I needed an online, asynchronous program. I learned so many things I still think are very important. I added to my professional experience and to my knowledge base.”

 

Long-Term Payoff

Cost, time and sacrifice must be weighed in the decision to go for a college degree. Research shows that more education pays off, literally, in the long run.

Data from 2024 on the U.S. Bureau of Labor Statistics website shows substantial economic differences by educational attainment. In a nutshell, people with education higher than a high school diploma tend to make more money and are less likely to experience unemployment. Workers with a bachelor’s degree reported median weekly earnings of about 66% more than those whose highest credential was a high school diploma. At the same time, bachelor’s degree holders experienced roughly 41% lower unemployment than high school graduates.

In Arkansas, a U of A researcher collaborated on research that found each additional year of schooling increases earnings by 7.7% on average in the state, and each year of education boosts earnings by 8.9% for women, well above the state average. The working paper by Harry Patrinos, Twenty-First Century Endowed Chair in Education Policy, and Angelica Rivera-Olvera, a consultant in economics at the World Bank, is available online.

 

Unemployment Rates and Earnings by Educational Attainment, 2024

 

Have a Plan

Still more research shows that how much a college graduate earns depends on what major they choose. It follows that some professions pay more than others. The return on investment can vary widely with the median ROI for a bachelor’s degree coming in at $160,000, according to an article published by bestcolleges.com based on a survey the website conducted and a report by the Foundation for Research on Equal Opportunity.

Trey Jenkins of Fort Smith believes the value of higher education may hinge on having a plan for what you want to do with your degree.

“It’s ill-advised to get a degree and rack up a bunch of debt if you do not have a plan on how to translate that to earnings,” he said. “A piece of paper is not going to guarantee anything. You have to be ambitious and know what you’re going to do with it, how to move up in the world with it.”

Jenkins completed a Bachelor of Science in Business Administration in Accounting delivered online by the U of A in 2022. He believes the degree gives him credibility with potential borrowers at First Western Bank in Fort Smith where he works as vice president and loan officer. He also owns two restaurants and an oil-change business.

As a commercial loan officer, he analyzes corporate and personal tax records and evaluates other financial documents, all to determine if a borrower is credit-worthy. The degree also helped him understand other parts of banking and business, in general.

“I use it every day,” Jenkins said. “You definitely can’t say that for all degrees. Other (certified public accountants) refer clients to me for banking needs and lending needs. Having the degree is something I can tout. It’s something I can point to as one of my qualifications to be your banker.”

 

Employer Funding

Best-case scenario is finding a company that you want to work for and that will help pay tuition costs, Jenkins said. He received support from his employer to pay tuition. Some businesses, industries and other institutions offer tuition reimbursement programs because it results in a more-qualified workforce for them.

Ashley Acord of Springdale started her Master of Science in Operations Management while working at the U of A, enabling her to take advantage of a 90% tuition discount for employees. However, she left for another job before finishing the degree.

“I felt a little stuck and knew I would have more career growth if I had additional training and education,” she said. “I thought it was worth the investment to finish my degree even after I left the university. I was about halfway through. I had come too far not to finish. It’s a short-term investment for a long-term reward.”

Now working for Walmart Stores Inc. as manager of communications for driver engagement, Acord was promoted at her previous position at PAM Transport four months after finishing her degree. PAM created the role of marketing and communications manager for her so that she could build a marketing and communications team.

“I really feel like my master’s degree helped me open those doors and prove I was qualified,” she said.

 

Scholarships, Financial Aid

Students enrolled in online degree programs tend to be older than traditional college students. According to a 2024 survey of U of A students in online programs, the average age of undergraduates was 30 and the average age of graduate students was 35. Of those who responded, 81% were employed full time. Half of them were parenting and 70% owned their own homes.

In addition to tuition assistance from employers, other sources of financial aid exist. Financial assistance in the form of grants, scholarships, work-study and loans amounted to $275.1 billion in 2024-25, according to the College Board’s Trends in Student Aid research series.

Officials strongly encourage students to file a Free Application for Federal Student Aid as early as possible. The FAFSA is available starting Oct. 1 for each academic year, and deadlines vary by state and school.

The U of A’s Global Campus, a unit that supports the delivery of online programs, offers a scholarship designed for students enrolled in fully online degree programs. The application period for the W.E. Manning Memorial Scholarship closes every year on Feb. 15.

Students in fully online degree programs also pay in-state tuition, which is lower than out-of-state tuition, regardless of where they live.

Acord won both a Manning scholarship and a scholarship from her degree program.

“I want to say thank you,” she said. “That assistance really did help me get my degree, really opened doors for me. Getting my advanced degree would not have been as feasible as it was without that support.”

 

Mindset Challenges

In her communication position with the state, Lewis uses information from academic research as well as focus groups and her own experiences to design communication campaigns. She has seen three issues come up recently other than cost: a rugged individualism mindset, resistance to the lifelong learner identity and low trust in institutions such as higher education.

With what she called rugged individualism, some people believe they can make money without a degree, and they may respond better to the message that there are many routes to success and education looks different for different people.

Related to that is lack of trust in the institution of higher education.

“Overall trust in higher education has declined but that is only part of the story,” she said. “Trust in any organization is also at a historic low, all levels of government, clergy, religious organizations … These things ebb and flow throughout history.”

The identity of lifelong learner doesn’t resonate with some in the younger generation, either, although it’s part of her own identity.

“I could sit in a classroom for the rest of my life,” she said. “But a study done by my colleagues in Indiana found ‘lifelong learner’ immediately turns off Gen Z. They find it overwhelming. Part of being a good marketer and communicator is finding what appeals to them, not to people who have a graduate degree. I’m trying to reach people on the fence about going to college at all.”

 

Variety, Flexibility

Lewis emphasizes the variety and flexibility of higher education that includes online options and eight-week courses allowing the learner to finish quicker. She also talks about training programs that can be completed in much shorter time spans than an academic degree, preparing learners to enter the job market faster.

When Lewis started thinking about a master’s degree, she knew she needed a flexible program that fit with her life – a job, a husband, three children with activities. She wanted to acquire more marketable skills and knowledge.

While her goal was a graduate degree, Lewis explains to high school students the variety of education and training programs available in Arkansas to fit their needs and goals.

 

Knowledge, Skills

One purpose of an academic degree is to prepare the graduate for work in a particular field. Jenkins calls accounting the “language of business” and says his degree has helped in his work in the banking industry and as a small-business owner.

However, students often also gain skills in areas unrelated to their subject of study but valuable to them in the workplace, nonetheless. Lewis described an “extremely difficult” course that was a lesson in tenacity as much as anything else.

“Digging in deep made me much more resilient,” she said. “I advocated for myself when I didn’t understand things with my professor. Anytime I’m learning a new concept, I think of that class and know I can learn anything.”