A Better Way: Part 6

What to Do in the Meantime

An expensive college simply isn't worth the money. The definitive review of the literature (Astin, 1997) finds absolutely no relationship between a college's cost and the amount of learning that accrues. And a study in the American Economic Review concluded that even in terms of earnings, "What matters most is not which college you attend, but what you did while you were there. (That means choosing a strong major, choosing professors carefully, getting involved in leadership activities, getting to know professors)...Measured college effects are small, explaining just one to two percent of the variance in earnings." A more recent study by the National Bureau of Economic Research (Krueger & Dale, 1999) produced similar findings: when controlling for student input variables, an Ivy League education confers no economic advantage on its graduates.

This makes sense. Sure the designer-label on an Ivy diploma opens career doors, but put an Ivy-caliber student at Podunk College, and she can accrue benefits that fully compensate. For example, although my daughter was admitted to prestigious Williams College, she turned it down in favor of an easier-to-get into public institution that cost 70% less. There, the honors program functioned as a patch of Ivy, small classes with Ivy-caliber students taught by top professors. Honors extracurriculars extended the elite experience beyond the classroom. Perhaps more important, as a top student, she was taken under wing by professors, got appointed to university-wide governance committees, and got touted for terrific post-college opportunities--she spent a year in the White House writing Hillary Clinton's daily briefings. If she had attended Williams, she would likely have been lost among its many top students--and we would have been nearly $100,000 poorer.

So, unless your annual income is under $40,000, which would make you likely to get significant cash (not loan) financial aid, or are too wealthy to care, your child should apply to colleges with a low sticker price. He will learn as much, you'll save a fortune, and you will spare your child the inordinate stress and waste of time (studying for the SAT, waking at 3 AM to do crew because it will look good on college applications) of trying to get into designer-label colleges that well may not be worth the money and effort.