I recently went to look up a year of tuition at my Alma matter.  I was shocked to see that yearly tuition had risen to nearly $50,000 per year.  THAT'S RIGHT, $50,000 PER YEAR!  So a four year education from this private university would cost an individual almost $200,000.

$200,000 is a lot of money.  At a 10% compounding interest rate it would grow to $1.6 million in 21 years.  Even today, someone could seed a decent business with the money. 

I remember my college days and most undergraduates spent more time thinking about getting naked and drinking beer than they did about serious academic studying.  Hey, I'm not criticizing, just pointing out my perception.  I get my alumni bulletin and I can see that more money is spent on upgrading gyms, campus centers, athletic fields, etc. than on educational initiatives.  It's because most students aren't there to learn, they are there to have fun.  They're 18, free of the home, and ready to meet others.  Society and parents allow it because of the belief that students are being educated and that their private school diploma will open doors and increase their future incomes.  But is that true?  Is a private college/university education economically worth it?

I searched the web and found an excellent analysis done by the Robertson Education Empowerment Foundation (http://www.aboutreef.org/is-college-worth-it.html), a non-profit started by Michael Robertson, the founder of MP3.  They write:

"These numbers indicate that a college education is an extremely poor economic investment for private universities and while better for public institutions still poses a meager return when compared to typical investments. To put this another way, most financial planners expect a 7-8% annual return. If you proposed to them a 40 year investment with expected yields of 2-4% on average they would most surely recommend against it. Making matters worse the numbers used for this calculation use average salaries for men. Since average women salaries are less college is even a poorer investment for females."

Now, there is no doubt that there is some societal value in a university education.  Graduates are supposedly more knowledgeable about the world, better citizens, and broader thinkers.  But do you need to shell out $200,000 to achieve this?  Wouldn't taking $20,000 and traveling the world for six months accomplish the same, if not more? 

I'll also concede that if you get into a  top-tier private university the price might be worth it.  Those schools have extensive alumni networks that can help you in the future.  You may also be an outstanding prodigy who really needs to go to a top university to gain access to the best academics and experts in your field - think physics, music, math, literature, etc. 

Since I graduated I've taken a pretty normal path.  I make a pretty good salary but I'm not sure that I couldn't have achieved the same things by going to a state school and saving a ton of money.  Money that I could have used to start a business, buy a second home, etc. 

What about you?  Do you think your private college education was worth it?  Is it worth it?  I'm curious to know what others think.