Are Elite Colleges Still Worth It?

By: Jill Schlesinger
Topics: Financial Decoder

As I prepare to take my niece to visit my alma mater, I keep wondering how the college game got so crazy. I grew up in the same town of privilege as my niece and yes, way back then, kids and parents talked about the college process. But what has ensued in the subsequent two decades since my graduation from college can only be described as insane.

(iStockphoto)

Before you write nasty comments, I admit that I'm talking about a small sliver of the population - those who who hire SAT tutors, college application consultants and lobby the test-takers to allow students the ability to toss out the scores they don't like. You'll recognize them as the parents who carry an armful of college ranking publications.

The old rationale for attending college for everyone was simple: get a good education because it will not only enrich your mind, it will also make you wealthier. Indeed, college graduates have fared better in this recession than those without degrees and college graduates earn more over their lifetimes. But it costs a boatload of money to attend a four-year private or public school, leading some to wonder: is college still worth it?

I remember that when people talked about attending prestigious schools when I was applying, one of the factors that guidance counselors heralded was the great networks that prestigious schools provide upon graduation. But is that really necessary today? Again, I think about the current residents in my old town - they have networks in place that obviate the need to attend one of the so-called blue ribbon universities.

All of this leaves me to believe that while it's nice to have a recognizable name on your resume, the obsession with the college application process should be downgraded in a big way. Doing so might actually allow our students to enjoy their high school experiences more and encourage parents to quit fretting so much.

More on MoneyWatch:
• The Real 'Best Colleges' in the U.S.
• The Best Colleges You've Never Heard Of
• Why U.S. News' College Ratings Are a Joke
• Best and Worst College Degrees By Salary
• Are Ivy League Schools Fudging Their Ratings?
• Top Colleges to Cut Big Aid Packages?
• 10 Colleges That Pay Most for Smart Kids

(CBS)

This post originally appeared The Financial Decoder blog on CBS MoneyWatch.com. Jill Schlesinger is the Editor-at-Large for CBS MoneyWatch.com. Prior to the launch of MoneyWatch, she was the Chief Investment Officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.

Jill Schlesinger
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Jill Schlesinger, CFP®, is the Editor-at-Large for CBS MoneyWatch. She covers the economy, markets, investing or anything else with a dollar sign. Prior to the launch of MoneyWatch in 2009, Jill was the chief investment officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.
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by psoupy September 29, 2009 12:06 PM EDT: People,people wake up Elite Colleges are a joke, but I guess you can say hey I went there, that will last you a year or two.; Reply to this comment


by MPHgrad September 25, 2009 9:05 AM EDT: The so called Ivy League schools only have as much value as society places upon them. The graduates are no more erudite than others who possess deliberative faculty. I work at a company which prides itself on hiring primarily from elite institutions such as Harvard, Duke, Yale, Oxford, et al. However, from my interactions with these graduates, I'm even more unimpressed than before. They espouse the teachings of others and have no real thoughts. In the words of Will Hunting, they paid six figures for what they could have gotten with a library card.; Reply to this comment


by mzilikazi-2009 September 25, 2009 3:01 AM EDT: This is honestly not meant to be a nasty comment even despite my history of spitting venom at those who have overseen the economy for up unitl now or have provided misleading or worthless information to those of us attempting to nagivgate it. Therefore, I sincerely hope that my writing is not offensive to the author of this fine article. I should even point out that Ms. Schlesinger has my admiration just for not having ended up destitute after having been an options trader.

The issues touched on here make this a very relevant topic for many young people in today's world. However, how can one seriously debate "elite" colleges being of financial concern or questionable worth? The old saying "if you have to ask then you can't afford it" comes to mind. IMO if your family is elite then money generally shouldn't be an issue and it is likely that your education may not be primarily intended to help in your capturing of a salary.

On the other hand, seeing as how the majority of the population might not all be millionares, it makes sense IMO to address concerns about education expenses (even for those attending meager state universities) as well as the true worth of higher education. Perhaps most pressing at present is the sheer number of individuals who are simply not able to find work even despite their qualifications, knowledge and skills.

The mind is a terrible thing to waste but in an economy like this going to university for many, particulary those dependent on student loans in order to further themselves, can seem not only like a complete waste of time and work, but also one of the worst financial mistakes one can make. However, always the optimist, I do not doubt that such issues can be resolved with some thought and effort.

As new areas of opportunity begin to emerge within the economy it will be easier to judge the worth of higher education by financial means. Perhaps after the initial tide of newly unemployed and desperate job seeking entrants to universities begins to recede, stimulus funding goes missing and reality sets in over the coming months, state universities will begin to scale back on wasteful spending in order to lower tuition. I say this even if it means not having new stadiums or the newest editions of texts.

Judging from the title of his new book, in some aspects maybe Nader has it right. Thank goodness for the elite as at least they will still be able to become educated and lead the rest of us. Whatever happens, for the sake of the nation I only hope that the real job growth is not limited to black market tobacco smuggling or the stealing of parking meters in order to break them open. Yes, the Army is hiring but I already gave and arm and a leg for my degree.; Reply to this comment