In a typical year, more than 2 million recent U.S. high-school graduates begin college in the fall. Students and families, in taking the huge financial leap into the college market, face both uncertainty and risk. Since the vast majority of students receive at least some merit- or need-based aid, it isn’t possible to identify the actual price for a given four-year college without gaining admission to that institution and completing an arduous financial-aid process. Further, while decades of evidence demonstrate that, in general, a college degree increases an individual’s earning power, the choice to go to college still involves financial risk. That’s because many people enroll but do not complete a degree and because one’s future wages are highly uncertain in any case.
