Student Employment and The Economic Cost of Delayed College Graduation

Abstract

This paper presents a model to estimate the economic cost of extended time-to-degree. This first look at delayed graduation costs considers student employment, tuition levels, expected salary upon graduation, interest rates, and the opportunity costs of professional advancement and retirement contributions. The results indicate that a one-year delay in graduation significantly impacts the future financial position of a student. It is estimated that students graduating in five years, rather than four years, will assume an average total economic cost between $94,921 and $114,589. Simulation results are reported and show a total economic cost range of $49,109 to $163,974.