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A College Degree Is Worth the Cost — And Then Some

By Princeton University President Christopher Eisgruber:

When he retires next year after running the Princeton University endowment for nearly 30 years, Andrew Golden will be acknowledged as one of the most successful university investment managers of all time.

Andy’s key statistic is 12.6 percent. That’s the annualized return earned by Princeton’s endowment during his tenure, well above the 8.5 percent industry benchmark. The Golden touch has dramatically boosted Princeton’s ability to invest in financial aid, scientific research, and sustainability programs for the benefit of the country and humanity.

But even Andy’s performance suffers compared with the return on investment from a college degree. According to repeated analyses by economists at the Federal Reserve Bank of New York, a four-year degree generates an annual return of 14 percent over a 40-year career.

You don’t need a Princeton diploma to beat the Princeton endowment. Any good bachelor’s degree will do the trick. Indeed, it is hard to conceive of a more reliable and cost-effective investment than attending and completing college.

Read the rest of the article in The Washington Post.