Many Americans underestimate the value of a college degree

The idea that people who graduate college typically make more money may seem like conventional wisdom. But a new study suggests that many Americans don’t have an accurate sense of the economic benefits a college degree provides — and that could be keeping them from going.

Nearly 75% of respondents to a survey conducted by the Federal Reserve Bank of New York underestimate the earnings premium that comes from a college degree and more than 60% of respondents overestimate the cost of college. Low-income households or households where the parents didn’t go to college were more likely to estimate incorrectly.

“One […]