In a recent article we reported on the top colleges, liberal arts colleges, regional colleges, and party schools. Many of the best-known national universities were Ivy League schools. But, in this tough economy, is it really worth it to pay more to attend a highly ranked liberal arts college or private university, especially an Ivy League school?
Well, it depends on how much you’re willing to invest now to give yourself a career boost later.
Attending a more prestigious college or university can lead to more starting pay, according to a major survey by PayScale Inc., an online provider of worldwide compensation statistics. Plus, the difference in pay between graduates of differently ranked colleges can last long into their careers.
In 2008, PayScale Inc. surveyed 1.2 million graduates who had earned a Bachelor’s degree and worked for a minimum of 10 years—the median was 15.5 years. The survey responders came from over 300 American colleges, running the gamut from state schools to Ivy League schools. Only full-time employees were included; project-based, self-employed, and contract employees were excluded. Respondents with graduate degrees were also excluded.
The salaries of these respondents showed that Ivy Leaguers earned more than other college graduates. For example, the median starting salary for Ivy League graduates was 32% higher than that of liberal arts college graduates. At 10 or more years into graduates’ careers, the spread was 34%. The survey defined “salary” as yearly cash compensation, including base salary or hourly wages, commissions, profit sharing, bonuses, and other types of cash earnings.
Not all Ivy League schools gave the same earnings boost, however. Graduates of Dartmouth College, an Ivy League national university, had the highest median salary—$134,000. Meanwhile, graduates from Columbia University, one of the four highest-ranked national universities for 2011, had the lowest median career salary among the Ivy Leaguers—$107,000. As a comparison, the best-paid liberal arts college graduates, from Bucknell University, earned a little more—$110,000.
PayScale Inc. also measured how much salaries for different graduates grew over the years. Salaries for liberal arts college graduates increased by 95% after about a decade, from $45,747 to $83,379. Graduates of top party schools—as defined by the 2008 Princeton Review College Guide—saw their incomes increase 85% during that period, from $45,715 to $84,715.
In terms of income increases, Ivy Leaguers tended to stay ahead of state college graduates in liberal arts majors, too. English majors who graduated from Harvard University earned a median starting salary of $44,500, a 27% difference from those with English degrees from Ohio State University, who earned $35,000. After a decade, English majors from Harvard earned $103,000 in median pay. That’s 111% more than their Ohio State colleagues.
But why do Ivy League graduates earn more? Did they get a better education? Do they have better networks? Are they more motivated? Or is everyone just impressed by the big names on their resumes?
Experts say Ivy Leaguers are more likely to select roles in which they manage others or provide advice and are also more likely to go into finance positions. That indicates individual preferences may be part of the puzzle.
So, if you’re highly motivated by future earnings, attending an Ivy League school may be worth the cost. Apart from that, going to a liberal arts college may give you a bigger salary boost than a top party school, although you can expect a sizable increase in salary over the years with either one.
Of course, the flip side is that Ivy League national universities and big-name liberal arts colleges are more expensive than state universities, so you’ll either need ample resources or generous financial aid. To compare and contrast prices, we’ve sampled tuition costs from the best colleges for 2011, citing tuition expenses for the 3 top National Universities and Liberal Arts Colleges, as defined by U.S. News and World Report’s 2011 college rankings, and the 3 top Party Schools for 2011, as defined by Playboy Magazine’s well-known list. The actual tuition information all comes from U.S. News and World Report.
Here are the costs for attending highly-ranked universities and colleges:
2010/2011 tuition costs for the 3 Top Colleges:
- Harvard University in Cambridge, Massachusetts: $38,416
- Princeton University in Princeton, New Jersey: $36,640
- Yale University in New Haven, Connecticut: $38,300
2010/2011 tuition costs for the 3 best Liberal Arts Colleges:
- Williams College in Williamstown, Massachusetts: $41,434
- Amherst College in Amherst, Massachusetts: $40,862
- Swarthmore College in Swarthmore, Pennsylvania: $39,600
2010/2011 tuition costs for the top 3 Party Schools:
- The University of Colorado Boulder, in Boulder, Colorado: $8,511 in-state; $28,193 out-of-state
- Pennsylvania State University in University Park, Pennsylvania: $15,250 in-state; $27,114 out-of-state
- Arizona State University in Phoenix, Arizona: $7,661 in-state; $20,596 out-of-state
As you can see, the Liberal Arts Colleges are actually slightly more expensive than the National Universities. The top party universities—all of which are well-respected public institutions—are much less expensive, especially if you’re eligible for in-state tuition.
Of course, financial aid can help you attend schools that would otherwise be out of your price range, but it’s such a big variable that we won’t have room to cover it in this article. Unfortunately, not every student who needs aid will receive it. It’s up to you to make sure you get the most financial aid; that’s true no matter where you attend.
So, basically, how much are you willing to spend on college now to get an earnings boost later? That’s one of the main questions that will determine whether attending a top Ivy League school or liberal arts college will be worth it for you. If you can afford it, a more prestigious school can help you get ahead of the pack, but in the end, your future success will depend on you.
