Marketplace Insights Exploring the Value of Higher Ed with Grads and Parents

The Ultimate Question: Is Higher Education Still “Worth It”?

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We explored:

Are the costs for school worth the value students get from

their degree?

With so much uncertainty and instability, even amid economic recovery,

perceptions of the value of higher education warrant a closer look.

This study captures a glimpse into the hopes, aspirations, experiences,

and regrets of today’s traditional four-year, two-year, vocational graduates

and their parents.

We explored:

The opportunities grads expect from different types of institutions

Their degree selections and subsequent career alignment

Post-graduation reflections of the value of higher education

Grads advice for other prospective students and parents about

to embark on the journey

We discovered:

Higher education is still worth it, but changes to expectations

must be made.

Despite the high cost and relatively low short-term payoff, most feel that the

pursuit of higher education is even more valuable today than in the past.

Graduates and parents expect higher education to lead to better job

opportunities and provide students with a well-rounded experience.

With very clear expectations two-year graduates find success and

happiness early on, however those with a four-year degree were more

divided in how they perceived their success due to less clearly defined

expectations. In the end, both graduates and parents alike advise others to

be more deliberate in their decision of what the path after high school looks

like. Specifically addressing the “failure” some four-year graduates felt in the

real world, they suggested that in order to extract full value from a four-year

degree, both students and institutions should take a page from the

pragmatic approach of the two-year student/institution.

Mindset of the Four-Year Graduate: Defining Value

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Graduates measure the value of higher education by what they gain mentally, emotionally, professionally, financially, and even spiritually. Success means forming new relationships, becoming a responsible adult, finding a fulfilling career, and making enough money to live comfortably.

I think value in higher education comes in the form of what you learn and the life experiences you gain while you are there. Learning, meeting new people, discovering life (living on your own, paying bills), etc.

Recent four-year grad, female, 30-34

Value to me is being able to do a job that I enjoy, something I look forward to everyday, something that allows me to provide for my family.

Recent four-year grad, female, 30-34

Self-Fulfillment: Forming new relationships

Economic Comfort: Making enough money to live

comfortably

Skill building: Educational learning

Career success: Finding a fulfilling career

Diversity

Independence

Organizations/Clubs

Self Discovery

Networking

Studying Abroad

Mindset of the Four-Year Graduate: Goal Is a Well-Rounded College Experience

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With a four-year degree, graduates (and parents) expect a more well-rounded, richer experience.

[I expected] the opportunity to live on my own, so to speak. Right out of high school, I wanted to live the college life (have a roommate, live on my own away from home). I wanted a quality education and a chance to cut the cord from childhood and become an adult.

Recent four-year grad, female, 25-29

They are uncertain about their specific career path, but they

consider future employment when selecting a degree/program.

four-year graduates view degrees in

business and finance as having a high likelihood

of employment—even if they don’t exactly know what they

want to do. While in school, they might pair these

degrees with a second major—sometimes in liberal arts—

to either hone in on a specific interest, or broaden

their occupational horizons.

Mindset of the Four-Year Graduate: Richer Experience, De-emphasized Career Goals

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Four-year grads employment expectations are as broadly defined as their expectations of the entire college experience.

I always liked math and stuff like that, and I got involved in a mock stock market program at my high school that really made me interested in financial investment. I knew a finance degree would lead to a job easier than maybe a humanities degree.

Recent four-year grad, male, 25-29

Mindset of the Four-Year Graduate A Degree Will Do

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They expect their diploma alone will get them a job.

I graduated with a communications and political science double major. I looked for a job intensely, was obviously unable to find one in my fields. […] I felt that [the education itself] was enough for me to get the job I wanted. If I had it to do over again, I would focus on an education and training program (vocational school).

Recent four-year grad, male, 30-34

Some graduates overestimate the power of a degree in and of itself. They assume that a degree alone is the only

preparation required for an entry-level position in their respective

fields. In fact, many recent four-year grads went through college

assuming that classes alone were enough to make them

employable, seemingly oblivious to the vitality of practical

application as one piece to a well-rounded, “traditional”

college experience.

Mindset of the Associates/Vocational Graduate: Defining Value

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Two-year/vocational grads and their parents have defining factors that determine their choice in educational institutions. The value for them is related to their circumstances.

I chose the quickest way to get a degree from the best school I could because I am a working dad. Timing and proximity greatly impacted my decision.

Recent assoc/vocational grad, male, 35-39

[My son got] a more enjoyable learning experience as he would not be in a traditional classroom setting for extended periods of time. It was a quick program with the promise of job placement assistance and they sure delivered.

Parent of recent assoc/vocational grad, female, 35-39

Students with family, outside obligations or those who can’t afford the high tuition of traditional four- year programs, need an education that doesn’t break the bank.

Financial

Situation

Life circumstances typically dictate the decision to pursue a degree from a two-year or vocational school. Particularly for those 25 years and older, it makes sense to choose a shorter, less expensive program that fits around their work/ family schedule.

Age

Parents of two-year and vocational graduates want to accommodate children who don’t thrive in a traditional classroom environment. These students need a hands-on, expeditious experience that successfully prepares them for a specific career.

Learning

Style

They have a specific career in mind and want to enter the workforce quickly. Grads see a very tangible opportunity to make money doing something they enjoy. Parents echo the sentiment that the two-year/vocational approach naturally leads to career success.

Focus

Mindset of the Associates/Vocational Graduate: Nice Start, Uncertain Future

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Recent graduates believe that initially they can earn just as much (if not more) with their degree than their counterparts with bachelor’s degrees. However, their future potential is uncertain.

I wanted to go for my bachelor’s, but decided that I should start off with my associate degree. Now I am thinking of pursuing my bachelor’s. I would like to get a better job position, make more money and, overall, advance my knowledge.

Recent assoc/vocational grad, female, 18-24

Among this group, there is still concern that employers will not appreciate or accept these two-year degrees and certificates. And regardless of the opportunities afforded them,

graduates of community colleges and vocational schools still equate higher degrees with higher pay. In fact, many of them

plan to continue on for a bachelor’s in the near future.

A smart decision, as CNN Money reports that earnings potential shifts back to four-year degree holders over the span of a career.

Measuring Success: Satisfaction with Higher Education

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Both vocational, associates and four-year graduates who are happy with their job situations express the most satisfaction with their education

Many recent four-year grads are happy with their decision to attend school and improve their prospects. A degree means increased pay and endless

opportunities.

The two-year and vocational grads and their parents echo that satisfaction and optimism. They, too, report increased pay, as well as a desire to seek out

other professional (or educational) opportunities in the future.

My current job with the degree requires less physical work and allows me to have more energy when I get home. My future for myself and my family will be far better. I will be able to provide more and help save for retirement and college savings.

Recent assoc/vocational grad, male, 35-39

Studying Philosophy allowed me to really sharpen my critical thinking and inductive reasoning skills. I also learned multi-dimensional problem solving. Also, studying Philosophy really heightened my reading and writing skills. I learned how to communicate effectively, as well as form original, creative solutions to problems.

Recent four-year grad, female, 25-29

Job satisfaction Education satisfaction

Measuring Success: Satisfaction with Higher Education

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Four-year graduates who have struggled post-college are happy with the skills they have gained, but are often dissatisfied with their school’s involvement and regret their choice of major.

Choosing wrong major

Pursuing a richer experience deemphasizes career goals. Though in the

minority, some graduates don’t prioritize future employment at all when

selecting a major or program of study. Instead, they simply choose

something that interests them—typically, within the realm of liberal arts.

What they make of the degree is up to them, of course.

Additionally, parents question less practical degrees, even if they don’t

vocalize this opposition to their children. Overall, parents just want their

kids to be happy, but wish they wouldn’t waste money on unused degrees

in the process.

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Schools could have done more

Looking back on their experiences, some four-year graduates feel that

their respective schools could have done much more to prepare them to

enter the workforce. Broadly, they recall having to be “self-motivated

to get ahead” in networking, internships, and post-grad employment.

Instead, they wish that a more formal structure had been in place to

expose them to employment opportunities and networking, as well as

instruct them on how to proceed professionally post-graduation.

I chose philosophy because I thought it was interesting, and I still maintain that feeling. But if I thought about jobs when I was choosing a major, then I would’ve chosen this as a minor.

Recent four-year grad, male, 18-24

I graduated from New York University with a BFA in Film & TV Production. I had an okay experience at NYU, but I feel like the school did very little as far as preparing us (at least the people in my major) for actually being employed after we graduated.

Recent four-year grad, female, 25-29

Parents of recent grads believe that the

value of a degree continues to grow

compared to when they were young,

and that it’s incredibly important for all

kids to have access to higher education.

Their only concern is that college is

becoming too cost prohibitive.

Additionally, advanced degrees are

becoming more expected—which

also equates to more costs.

Summary: The Pursuit of Higher Education Remains Valuable

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Neither graduates nor parents feel a continued education should be passed over in today’s world.

Perhaps the most important and

all-encompassing takeaway of the study is

that despite a severe economic downturn

and the pessimism that has emerged from it,

graduates of higher education continue

to feel that knowledge is power. Not only

do they see its value in their own lives,

but they want their children one day

to pursue it as well and avoid the

limitations of a life sans a degree.

An education pays in the end. If your kid is not up to a traditional college, find something that fits. The payback is huge. There are almost ZERO jobs that will hire without education now at a decent pay rate!!! Back in my day, you could work yourself up.

Parent of recent assoc/vocational grad, female, 35-39

I think it is important to keep reaching for more knowledge and learn as much as possible. Higher education is so important today and will continue to be that way I believe for years to come.

Recent four-year grad, female, 25-29

Respect child’s choices and interests,

but give practical advice

Explore all options—even the two-year and

vocational schools—to find the best and most

affordable route

Stress importance of internships and job

placement

Parents recommend exploring all options, researching, and finding a

balance between supporting a child’s choices and pushing them to succeed.

Recommend internships

Provide networking opportunities/

suggestions

Offer career counseling that aligns interests

with realistic career goals

Four-year graduates and parents recommend institutions emphasize a

more practical career application similar to what is interwoven into vocational

and two-year programs.

Put time, thought and research Into

their decision

Work hard

Choose a path that is both enjoyable

and lucrative—but also realistic

Graduates recommend that prospective students take the time to research

options and ensure that they will be employable and happy.

Recommendations From Parents & Grads

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Four-year institutions face the challenge of providing a traditional experience with the same pragmatism boasted by two-year and vocational schools to better equip tomorrow’s workforce for an ever-changing economic landscape.

Higher Institution Guidance

Student Responsibility

Parental Obligation

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iModerate conducted 82 conversations with a mix of four-year

graduates and associate/vocational graduates who had

obtained a college degree between 2010-2013. We also

spoke to parents. All participants were 18 years or older.

Project Specifics

Our qualitative research is based on a cognitive approach

called ThoughtPath. Drawing on three select cognitive

theories, ThoughtPath enables our skilled moderators to get

into each consumer’s head and discover what’s most

important to them, what’s not, and why.

ThoughtPath™

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