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Attendees of 1 in 4 higher education programs earn less than high school grads, study finds
Americans are increasingly skeptical of the value of a post-secondary education at a time when college attendance costs are soaring. In some cases, those doubts may be justified, according to a new analysis of earnings data from almost 4,000 colleges and other higher education programs.
A decade after enrolling, attendees of 1 in 4 higher education programs are earning less than the median annual income of $32,000 for high school graduates, according to The HEA Group, which analyzed data from the Department of Education to track the earnings outcomes of about five million students.
About 8% of institutions show their students’ median income a decade after enrolling is less than $22,000 a year, or about 150% of the federal poverty line — low enough to qualify for some public assistance programs, The HEA Group found.
To be sure, the majority of colleges are producing graduates who outearn people with only high school degrees, and economic research points to a well-documented wage premium for college grads that only grows over time. But the findings may help explain the growing pessimism among Americans about whether a college degree justifies taking on student debt, which currently tops $37,000 per borrower.
“The main reason why students go to college is for greater employability and for a financially secure future,” Michael Michael Itzkowitz, the former director of the Department of Education’s College Scorecard and the founder of The HEA Group, told CBS MoneyWatch.
He added, “As you think about the student debt problem, this raises questions. Are colleges providing enough of a value to allow students to earn a decent living and pay down their student loans after they attend?”
About 56% of Americans now believe that earning a four-year college degree isn’t worth the cost, compared with 40% a decade ago, according to a poll last year from the Wall Street Journal and NORC at the University of Chicago.
In addition to the soaring cost of college, the 64% graduation rate at colleges granting 4-year degrees means some students are leaving in debt but without a degree hindering them from enjoying the college wage premium. The HEA Group’s income data covers all higher education attendees, including both those who graduated and those who dropped out.
Dropouts are “three times as likely to default on their student loans as other students,” Itzkowitz said. “It’s often because they haven’t earned their credentials, yet they have taken on debt, which becomes unmanageable.”
Where post-secondary degrees may not pay off
Many of the colleges with post-secondary programs whose attendees earn less than high school grads are for-profit institutions or trade schools offering certificates in cosmetology and other vocational programs. Some are also community colleges, religious institutions and arts programs offering bachelor’s degrees.
“What we can see is that many of them are short-term, often times for-profit institutions that show the majority of their students earning less than at the typical high school student,” Itzkowitz said.
Certificate programs are an important avenue for students to obtain a post-secondary degree, and in the right circumstances can lead to higher earnings, he added. “They allow students to pay only one year of tuition to gain a skill and enter the workforce immediately,” he said, “but they are often the riskiest programs in the U.S.”
The lowest-earning institution is Searcy Beauty College in Searcy, Arkansas, whose attendees earn median income of about $11,300 per year a decade after enrolling, compared with median annual pay of $32,000 for high school grads, the HEA analysis found. The school’s cosmetology course costs $16,000, its website shows. Searcy Beauty College didn’t immediately return a request for comment.
The colleges that pay off
To be sure, attendees of about 2,800 U.S. colleges and other post-secondary institutions earn more than high school grads, the analysis found. But some grads may come out only slightly ahead, with attendees of about 90 institutions earning between $32,000 to $33,000 annually a decade after enrollment — just a hair higher than the $32,000 median income for high school grads.
Examining earnings data for a program’s attendees, as well as graduation rates, can help inform students and their parents about whether a degree will pay off long-term, Itzkowitz said.
And many public state universities and colleges provide excellent value, helping to juice their graduates’ incomes at an affordable price. Take Baruch College of the City University of New York (CUNY), a public institution. Its grads earn about $71,000 per year a decade after they attend — on the same order as well-regarded private colleges such as Scripps College and Wesleyan, the study found.
Baruch’s annual tuition cost is about $5,000 annually, compared with about $62,000 a year for tuition at Scripps.
At the top end of the spectrum, Ivy League colleges and other highly ranked schools produce the best incomes for their attendees, the study found. Attendees of Samuel Merritt University, a health care-focused institution, have the highest incomes, at $129,442 a decade later, while STEM-focused MIT is close behind with $124,213 in median annual earnings.
University of Pennsylvania’s attendees are the highest paid of the Ivy League, at $112,761 a decade later, the study found. But Itzkowitz noted that the Ivy League colleges are so exclusive that they educate just a “small sliver” of America’s students.
“There are so many colleges beyond the Ivy Leagues that provide good outcomes for their graduates at affordable prices,” he noted. “The larger public colleges across the U.S. enroll the vast majority of students and provide good outcomes at an affordable cost.”
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What started out as a college romance ended in murder and mystery.
1994 – Scott Peterson and Laci Rocha met in 1994 while both were attending college at California Polytechnic State University. They married two years later. In 2002, Laci became pregnant. The two lived in Modesto, California and planned to raise their unborn son Conner there.
Laci Peterson Missing
December 24, 2002 – Scott Peterson says that on Christmas Eve morning, he left his pregnant wife alone to go fishing about 90 miles away at the Berkeley Marina. He says that Laci planned to walk the couple’s dog, McKenzie, and mop the kitchen floor. When Scott returned home hours later, he says he found McKenzie there alone, still wearing a leash – but no sign of Laci. That evening, Laci’s stepfather called the police to report her missing.
Searching for Laci
Family, friends, and volunteers launched a huge search for Laci Peterson.
Scott Peterson was interviewed by police in the early hours of Christmas Day. Now-retired Modesto Police Detective Jon Buehler says Scott didn’t seem as interested as one would expect. “Oftentimes, a victim who’s left behind is firing tons of questions at us … And we didn’t get any of that from him,” Buehler told “48 Hours.”
Amber Frey
December 30, 2002 – Less than a week after Laci Peterson went missing, Modesto detectives raced over to investigate an intriguing lead: a Fresno massage therapist named Amber Frey revealed that she had been dating Scott Peterson for over a month. She told police that Peterson had lied to her and said he was single.
Secret Recordings
Former Detective Buehler notes, “Her recall was fantastic. It was almost like it was a script from a Hallmark TV show or something.” Amber Frey recalled every detail of their romantic dates, down to what they were wearing. Hoping for clues that might lead them to the missing woman, detectives ask Frey to record phone calls between her and Scott Peterson, and she agrees.
Affair Revealed
January 24, 2003 – In an explosive press conference one month after Laci Peterson goes missing, Amber Frey publicly reveals her affair with Scott Peterson. “I am very sorry for Laci’s family and the pain that this has caused them,” she said. “And I pray for her safe return, as well.”
Prior to Frey going public, Peterson had told her in a recorded call that he was in Paris when he was really in Modesto while the search for Laci was still on. Eventually Scott admitted to her, “I’ve lied to you that I’ve been traveling.” Those recorded calls would later become part of a damning case against Peterson.
Bodies Found
April 13 and 14, 2003 – Two bodies are found on the shores of the San Francisco Bay. They are later identified as Laci Peterson and her unborn child. The two bodies were found about a mile apart.
Scott Peterson Arrested
April 18, 2003 – Authorities caught up with Scott Peterson at a golf course in San Diego and arrested him. Authorities found a wad of cash, his brother’s ID card, and multiple cell phones inside the vehicle. Days later, Peterson pleaded not guilty to two counts of capital murder.
Trial and Error
June 1, 2004 – Scott Peterson’s trial begins in San Mateo County, California. Because of massive publicity the trial was moved from Modesto to Redwood City, in San Mateo County. The decision was made because the judge decided it would be difficult for Peterson to get a fair trial too close to home, where emotions were running high.
High Suspicions
August 10, 2004 – In what many consider a major turning point of the trial, Amber Frey took the stand for the first time to tell the jury about her relationship with Scott Peterson, a secretly married man, and about all the lies he told her. Frey painted a picture of a dishonest man who could tell falsehoods with ease, hurting his credibility.
Jurors heard the lies for themselves in those recorded phone calls Frey made.
Justice for Laci and Conner
November 12, 2004 – Scott Peterson was found guilty of first-degree murder for the death of his wife Laci and second-degree murder for the death of his unborn son Conner. Crowds outside cheer.
Peterson Jurors
March 16, 2005 – Four months after his conviction, Scott Peterson is sentenced to death. At a press conference, Juror No. 7, Richelle Nice, [pictured center] called Peterson a “jerk” and commented “San Quentin is your new home,” referring to the prison where he would serve his sentence. Nice was nicknamed “Strawberry Shortcake” during the trial because of her hair color.
Death Sentence Overturned
August 24, 2020 – After two appeals, Scott Peterson’s death sentence was overturned by the California Supreme Court after deciding that the original trial judge made a mistake when jurors were being picked for trial. The result of that mistake, Peterson’s supporters say, was that the jury was stacked with pro death penalty jurors. Peterson, shown here in 2018, will now receive a new trial for only the sentence phase.
The court upheld his murder convictions.
Juror No. 7
October 14, 2020 – The California Supreme Court orders a lower court to reexamine Peterson’s murder convictions and decide if he should get an entire new trial. Scott Peterson’s supporters say it all comes down to the actions of that juror once nicknamed “Strawberry Shortcake” – Richelle Nice, pictured here in 2005.
During jury selection, prospective jurors filled out a questionnaire asking if they had in the past been in a lawsuit and if they had been crime victims. Nice checked no. “It’s pretty clear… that she lied to us straight to our face about her own situation,” Peterson’s current attorney Pat Harris told “48 Hours.” In fact, Nice was involved in two domestic disputes in the past. But prosecutors say when Nice filled out that questionnaire she didn’t lie, she just didn’t think her past experiences were relevant to the questions and didn’t see herself as a victim. Now a lower court will consider if Peterson will get a complete retrial. Richelle Nice declined to speak with “48 Hours.”
New Evidence?
March 7, 2021 – CBS News’ Jonathan Vigliotti interviewed Scott Peterson’s sister-in-law Janey Peterson in her “war room” of evidence she claims proves his innocence. She claims witnesses saw Laci walking in the neighborhood near the Peterson home after the time Scott said he left for the fishing trip. If that’s true, Scott couldn’t have killed Laci.
Scott Peterson’s attorney explains, “there’s been a lot of criticism because we didn’t call some witnesses who saw Laci that day,” and that the thought process at the time was that “a number of the witnesses who saw her didn’t have great – memories or had contra – were contradicting each other.”
Retired detective Jon Buehler says there are no witnesses who saw Laci alive that morning. He says there were other young women in the neighborhood who were pregnant and looked similar to Laci, and that “it would be real easy for somebody to mistakenly see one of those three girls as being Laci.” Still, Janey Peterson insists that Scott is innocent.
A Burglary
Perhaps more important to a new defense case is what Janey Peterson believes actually happened to Laci. She points to a burglary she believes happened on the same day Laci disappeared, right across the street from the Peterson home. Scott Peterson’s supporters theorize that Laci confronted the burglars and that ended badly. But police quickly arrested the burglars – Steven Todd and Donald Pearce – pictured here in a 2003 Modesto Police Department press release.
Awaiting a Decision
April 27, 2021 – Scott Peterson appeared in court remotely for a status hearing on a new death penalty trial.
Dec. 8, 2021: Scott Peterson was resentenced to life in prison without the possibility of parole for the deaths of his wife and unborn child.
2024: The Los Angeles Innocence Project took up Peterson’s fight for a new trial. Since then, a California judge has granted his defense team access to previously undisclosed evidence as well as permission to do additional DNA testing.
Peterson and his supporters maintain the wrong man is in prison for Laci and Conner’s deaths. According to Detective Buehler, “Well, I guess it’s possible. But you know, there’s still people that believe the Earth is flat too.”
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