Some associate degrees lead to higher paying jobs than four-year degrees
By CC Times, Published February 10, 2010

A new report outlines how community college credentials can play a vital role in creating economic security for young adults while rejuvenating career opportunities for out-of-work Americans.

In many cases, certificates and associate degrees offered by community colleges can lead to higher salaries than four-year degrees, according to a report from the policy center Demos. Degrees in engineering and health care—two fields where worker shortages continue—are particularly lucrative, it says.

While the evidence is encouraging, the report suggests that the full potential of community colleges has not yet been realized. Nearly half of certificate and associate degree students in career-related fields fail to complete a degree of any type, the report says.

"We found widespread evidence that community colleges and technical degree programs, which offer specialized training for a variety of fields, are vital to a 'good jobs' economic recovery," said Viany Orozco, policy analyst in the economic opportunity program at Demos and a co-author of the report. "But there are also myriad technical barriers preventing many who matriculate into one- and two-year programs from graduating."

Many community college students must work full-time or part-time in order to pay for college and living expenses, and many of them are not academically prepared for college-level work, the report notes.

"These obstacles are not insurmountable and are well worth the effort as millions of young adults and recently laid-off workers look to community colleges for needed career training,” Orozco said.

Other findings in the report include:

• Eight years after graduating from high school, 27 percent of those holding a community college certificate as their highest degree earn a median annual salary that is higher than someone holding a bachelors degree.
• 31 percent of associate-degree holders earn more than someone holding a bachelor’s degree.
• The salaries earned by those with community college certificates in engineering and health care ($47,000 and $46,000, respectively), are close to what bachelor’s degree holders in the social or natural sciences earn and are actually more than what someone holding a bachelor’s degree in education earns.
• Students awarded certificates earn median annual salaries that are 27 percent greater (about $8,000 a year more) than those who leave school with no postsecondary credential.
• 38 percent of those who enroll in occupational certificate programs and 58 percent of those enrolling in occupational associate degree programs fail to earn a credential of any type within six years.
• The average low-income student attending a community college has $7,000 in unmet expenses after financial aid grants are taken into account.
• Six out of 10 students entering community colleges are required to take remedial courses to make up for knowledge and skills they should have learned in high school, putting them at a severe disadvantage to pursue and finish specialized, high-paying credentials.

A substantive investment in community colleges, such as the Student Aid and Fiscal Responsibility Act—which includes the American Graduation Initiative—passed by the House of Representatives and awaiting passage in the Senate, would be an important step in restoring access to one- and two-year credentials to all students, according to the report.

Financial supports and grants to students would also play a crucial role in helping community college students to cover their living expenses and hence having to work less. By enrolling full-time, more students will be able to graduate sooner and be ready to take up high-demand jobs in a recovering economy, the report says.

The report was funded by the Bill & Melinda Gates Foundation.