What is the opportunity cost of attending college

Question

What is the opportunity cost of attending college?  In 2000, nearly 80% of college-educated Americans held jobs, whereas only about 40% of those who did not finish high school held jobs.  How might this difference relate to opportunity costs?

Answer 1

The opportunity cost of attending college (and of doing anything else) consists of the income forgone while attending college (and of doing anything else such as enjoying leisure) and the value of the goods that the student or the student’s parents sacrifice in order to pay tuition and buy books, and other items necessary for college but not necessary otherwise.

Those who are college-educated have the potential of earning more income than those who did not finish high school.  The opportunity cost (sacrifice of goods and services) of not working is much greater for those with the higher earning potential.