College debt is a burden, but the benefits outweigh the costs for those who earn a bachelor's degree, according to a study by the Federal Reserve Bank of Cleveland. "The labor market bonus for completing a college degree is not fully realized in the early years of working," the study finds. Rather, the benefits begin to accrue in middle-age when, "In many professions, a college degree combined with work experience opens the door to senior-level administrative positions and higher salaries."
It's another story for those who take on college debt but do not earn a degree. A substantial percentage of young adults are in the "some college" category—32 percent of householders aged 22 to 29. Those with some college but no degree will get little to no income boost from their time spent on a college campus. If they took on debt to pay for their college years, they are likely to end up worse off than if they had never gone to college at all.
Source: Federal Reserve Bank of Cleveland, A College Education Saddles Young Households with Debt, but Still Pays Off
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