Federal Reserve Bank Says Don't Go To Community College

Well, methinks the community colleges of America will be having a cow about now.

Yesterday, education reporter Mary Beth Marklein of USA Today announced a study that finds a Two-year ‘penalty’ if a student starts his or her higher education in a community college. The study, produced by the Federal Reserve Bank of St. Louis, indicates that students who start their education at a two-year college make somewhat less than their counterparts who start at a four-year college or university.

Interesting. Except that it’s not.

Does it really inform a particular individual’s decision about whether to start at a two-year school if as a group community college folks make less?

What about the price differential between the cost of a two year college and the cost of a four year college? If I invested the difference, would I have come out better than those who started at a four-year program?

These are nice statistics. But I envision that some parents will interpret them as a reason to prevent their student from attending a community college.

Sadly, this is exactly what the author of the study hopes: that students will think twice about attending a community college, because they will make less in the long run.

But remember folks, YOU (and your son or daughter) are not statistics. They are individuals. The averages may or may not apply to your son or daughter.

Plus, this study says nothing about the fact that there are many, many students who perhaps started at a community college because their grades in high school were low, or family finances were such that a four-year college was not an option immediately out of high school.

What if those same people who show up in the statistics were NOT to go to college?

Plus (I’m on a roll…), the average of the four-year colleges is across the entire higher education system. It is NOT true that any four-year degree is equivalent to any other.

I do not quarrel with the general principle that in the aggregate, all people who started with at a four-year college make somewhat more than those who started at a two-year college.

I also do not quarrel with the principle that (in the aggregate) those with a BA make more than those without them.

But your child (or mine) could easily make much more or much less than any of these aggregate averages.

Statistics are not determinants in individual cases. Students who start at a community college are not doomed to make less than their peers at four year colleges.

Am I wrong to believe in the power of the individual and the existence of personal will?

So, while I am appreciative of the information this study provides, we should use the data carefully. It should not, despite the wishes of the author to the contrary, be used to guide an individual’s decisions about their educational or professional future.

Mark Montgomery
Educational Consultant

Technorati Tags: community college, two-year college, university, four-year college, Federal Reserve, income, average, financial aid, statistics, higher education policy Del.icio.us Tags: community college, two-year college, university, four-year college, Federal Reserve, income, average, financial aid, statistics, higher education policy

Early Decision–A Choice You Might Regret Later?

decision written on a notebook

One of my favorite higher education bloggers, Mary Beth Marklein at USA Today, blogged yesterday about a new report that indicated that Many who get early admission to college regret choice later in life.

The research is a bit spotty, it seems. But it seems true that the admissions frenzy often appears to force students into decisions before they are ready to make them.

On the other hand, many students ARE ready to commit to a single college early in the process. I was, for example (many, many moons ago…).

I advise students to go Early Decision only if they are really, really, really, really (really!) sure that they are totally devoted to this one college choice.

Too many students try to game the strategy, and then come up with sub-optimal outcomes in their decision making. For more on this logic, see the book, The Early Admissions Game by Christopher Avery, Andrew Fairbanks, and Richard Zeckhauser.

The admissions frenzy results in some casualties, sometimes. And as the research seems to indicate, the wounds aren’t always apparent until much later.

Mark Montgomery
Independent College Consultant