College as an investment

College is often described as an investment in the future. You pay upfront so you can benefit for years afterwards. According to research, as of 2011 a college degree delivered an inflation-adjusted annual return of more than 15 percent, which is a good deal.

However, past performance is no guarantee of future returns. Wage growth is stagnating for college graduates, with average starting salaries increasing by just 1.4 percent from 2015 to 2018.