The Economics of College

So youre going to college! (Or not, both are fine, but either way you are doing this project
and will learn a lot )Great! But which one, and why?
In 2011, the average high school graduate in California made 29k, the average
college grad 55k, and the average graduate school or professional school
graduate made 77k.
- US Census Bureau
In 2011, the unemployment rate for high school graduates was 10%, but only
5% for college graduates
- Bureau of Labor
The average student loan debt is $27,650

-College Board

Average amount of a new-car loan in the US is $27,799

Workers with a bachelors degree on average earn well over $1 million more
than high school graduates during their working lives
-NYFed Report

Guiding Questions:
How can we make the most educated and best decision
about which college to attend?
Are loans good or bad? How many loans should we take
out?
How should what we plan to do in the future affect these
decisions?
How can economics help us make better decisions about
college and financial aid?

Project Overview
You will: Use cost benefit analysis to determine the pros and cons, financially, of attending three different
colleges of your choice based on your own cost of attending those colleges. To do so, you will take into
consideration the loans you will need to take out, the graduation rates of the colleges, your expected job and
its salary after college, and other factors, to determine a return on investment of obtaining a college degree
from each of the three colleges. You will present this information in an appropriate format for use at your SLC
with your parents or guardians.

College Economics Spring 2015

Economics of College Rubric

Mastery

Evidence
I can
determine
central
ideas of
primary and
secondary
sources and
cite specific
textual
evidence to
support
analysis of
those
sources.

Presentation provides
a detailed, thoughtful,
and appropriate
analysis of the costs
and benefits of
attending three
different colleges. All
aspects of the analysis
required are complete.
Student has clearly
mastered the
economic concepts
necessary to complete
the analysis.
The student
understands the
relevant facts and
concepts, included
credible and relevant
sources to support
their work, and
presented them
accurately.
Information was
presented clearly,
effectively, and
authentically, and
addressed
contradictory evidence
or alternative
perspectives.

Presentation provides
a mostly detailed,
thoughtful, and
appropriate analysis of
the costs and benefits
of attending three
different colleges.
Most aspects of the
analysis required are
complete. Student
shows mastery of the
economic concepts
necessary to complete
the analysis.
The student
understands the
relevant facts and
concepts, included
some credible and
relevant sources to
support their work,
and presented them
accurately.
Information was
mostly presented
clearly, effectively, and
authentically, and
student may have
addressed
contradictory evidence
or alternative
perspectives.

Presentation provides an
analysis of the costs and
benefits of attending three
different colleges, but
details may be missing or
inaccurate for one or more
of the colleges. Only some
aspects of the analysis
required are complete.
Student shows only a basic
mastery of the economic
concepts necessary to
complete the analysis.

Presentation does not

provide an analysis of the
costs and benefits of
attending three different
colleges. Few aspects of the
analysis required may be
complete. Student does not
show a basic mastery of the
economic concepts
necessary to complete the
analysis.

The student understands

some of the facts and
concepts at a very basic
level, included some or few
credible and relevant
sources to support their
work, and mostly presented
them accurately.
Information was not always
presented clearly,
effectively, and
authentically, and student
did not address
contradictory evidence or
alternative perspective
effectively or at all.

The student understands

few of the facts and
concepts, included few
credible and relevant
sources to support their
work, and mostly presented
them inaccurately.
Information was not
presented clearly,
effectively, and
authentically, and student
did not address
contradictory evidence or
alternative perspective
effectively.

Content Specific Items for College Economics:

Boxes/Images

Content

Importance of
a degree

At least one long paragraph with

citations, appropriate images

Why college
costs have
increased

At least one long paragraph with

citations, appropriate images,
graph explaining cost changes in
detail with annotations on the
graphs (shifts in demand vs.
movement along demand curve)

College Economics Spring 2015

Due
Date

Yes/No

Comments

Advice/Mistak
es

At least one long paragraph with

citations, quotes, and appropriate
images

Grad Rates
Chart

Graduation and retention rates for

your 3 schools, with talking points
in notes section
Table showing your 3 schools and
loans you will take out for each for
each year + total amount, with
talking points in notes section
Shows total amount of loans and
Total Payments, with talking points
in notes section
Monthly payments for your 3 loans
for your 3 schools, , with talking
points in notes section
A chart showing the difference for
one of your loans when repaying
the loan for three different term
lengths. For most of you this will be
for 5, 10, and 20 years. With talking
points in notes section discussing
both what compound interest is,
why it is important to pay loans off
sooner as opposed to later, and
why loans can be extremely useful
if handled properly.
10th%, 50th%, paragraph with
citations, appropriate images;
future prospects for this career (is
demand for this job expected to
grow? Stay the same? Shrink?) 2-3
sentences explaining what the job
does and why you are interested in
it. graph explaining changes in
future supply and demand for your
career in detail and how it may
affect your salary with annotations
on the graphs
Monthly budget with correct
starting salary, showing that you
can pay your loans for one of the
loan repayment plans, with talking
points in notes section

Loan Table

Loan Cost
Graph
Monthly
Payment Chart
Difference in
repayment
plans Chart

Career

Monthly
Budget

Lifetime
earnings chart

Graph showing lifetime earnings

compared to high school grad for all
three schools, with talking points in
notes section

ROI chart

Show your ROI for your 3 schools,

with talking points in notes section

College Economics Spring 2015

Cost Benefit
Analysis

Share the pros and cons for your

different schools, focusing on nonfinancial considerations

Final Decision

Tell us where you are going and

why

Works Cited

MLA Format

To complete your project you will need to create:

A Poster in Photoshop (or other graphic design program) that effectively communicates all of the above information to
an audience of parents, teachers, and 9th through 11th graders.

Other Important information:

I will be providing readings and mini lectures that will cover some of the topics above. Much of the information,
however, will need to be determined by you both in class and outside of class. I will be your coach, but since this is a
very personal journey for you and your family, I can only help you find the answers, rather than provide them for you. I
look forward to helping you think about this important decision!

Notes from Research:

Project
Section/Title

Notes

College Economics Spring 2015

Source