I won’t waste too much of your time on this point, because I’m guessing that you’re pretty intent on going to college since you bought this book. But many people, as they become hyper-focused on the college admissions and funding process, don’t stop to consider the opportunity costs of going to college versus alternative career paths. In other words, instead of going to college, you could save or invest all that money and get a four-year head-start on building your resumé or starting the business you’re dreaming of.

The following table shows you how much money someone would accumulate over four years instead of paying out certain amounts. The interest rate used in this calculation is 5 percent, which is near the historical rate of return on CDs or bonds that mature in four to five years.

Opportunity Cost of College Tuition After Four Years

When you stop to think about it, that’s a lot of money. That could go a long way toward purchasing a house (which in turn lowers your ongoing expenses) or starting a business (which could increase your income substantially).

Consider further that a whole lot of careers and vocations, such as those listed in the following table, can earn a ton of money without a college degree. Pair a career in one of these fields with accumulating (instead of spending) the money mentioned previously, and you might have a strong case for some people not going to college.

Top-Paying Jobs for Nongraduates

Source: Bureau of Labor Statistics (2008)