The Government: When a government contributes to undergraduate college education, it's looking for some combination of three things: (1) keep young people out of the workforce for a few years, (2) provide a better educated workforce to compete for higher value-added industries and (3) improve the quality of its public discourse. Historically, (1) has paid off quite well, and unemployment rates have been kept under control in societies with people living and working for longer periods. (2) is a bit more tenuous, given that highly skilled people can move to greener pastures, but often they send money if they do migrate, so probably better to pay for students than sailors. Unless, of course, the government runs a maritime nation with a shipbuilding industry suffering from lack of demand . . . (3) has been a manifest failure.
Charities and Foundations: These groups generally want to make experiences that they enjoyed or felt were formative available to others. Since many are directly tied to prominent alumni of various institutions with a strong interest in seeing their alma mater succeed, it's safe to say their role will remain to reduce the costs of, and possibly increase the benefits of, education for students at favored institutions. This situation will likely persist until your pie maker can endow Bake Around the World fellowships.
Employers: The cost/benefit analysis for employers heavily favors having a set of institutions that can handle professional training, mostly at the Master's level in the US. Meanwhile, many express dissatisfaction with the quality of Bachelor's graduates. If this continues, they may decide to use non-academic means of determine recruit quality, which would pretty dramatically change the calculation for
Students: The advice your pie maker gives to all students begins with this: do not pursue any degree until you have an idea what you want to do with it. If after starting you find you don't need it, stop, unless you both want to and can afford to continue. Steve Wozniak and Bill Gates are doing alright, and it's better to be broke and unemployed than heavily indebted and unemployed.
On the other hand, there are some strong personal benefits to being an alumnus of your chosen alma mater. There's no formula to assess the actual value of this, and assuming the student can afford the education, it comes down to a simple question of whether it is worth the Opportunity Cost to the student. Gut reactions are important for more than just pies.
To directly answer comment from the previous post, it's possible to come up with a formula that, assuming several uncertain things are known, can approximate the net benefit in terms of income:
if( (I_B - l_c)*p_F*p_E*d_B > I_HS)
Go to school
else
Go to work
Here, I_B represents the income potential with a Bachelor's degree, I_HS represents high school income after four years in the workforce. I_B must be reduced by the cost of servicing student loans, l_c. This quantity should be modified by three factors: 0 < p_F < 1, the probability* of student finishing despite risks such as lack of interest, mental or physical illness and uncertainty about finances; 0 < p_E < 1, probability of employment with one's chosen degree; and 0 < d_B < 4ish, how badly one wants to study in a particular field. There are far too many factors that play into each of those to give a more detailed answer, but anyone struggling with this decision is welcome to stop by the Fuzzy Wups to discuss. We have pie and just discovered the joys of grinding spices in with coffee.
*Quants: Yes, this is a flagrant abuse of probability theory and I fear someone will take this humble discussion aid and turn it into an AIG-risk-metric-esque tool to fool people into bad decisions. On the other hand, there's already plenty of such tools out there, and at least mine comes with this disclaimer.
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