3 Ways Public Colleges Trounce Ivy League Schools

Source: Flickr / scui3asteveo.

As a new crop of college graduates join the ranks of job seekers, things are looking a bit brighter on the employment front. The economy has begun creating many more new jobs, and a recent poll indicated that companies plan to increase their hiring of new college graduates by 8.6% this year.

But competition is still tough in the post-crisis job market, and many graduates of public colleges and universities may feel at a disadvantage to those whose newly minted degrees hail from more illustrious private schools.

If you are wondering whether Ivy League graduates have an edge over public college attendees, take heart. When it comes to achieving success – both at the career and personal level – graduates of the nation's public college system may actually have a leg up on those from those pricier schools. Let's count the ways.

Source: Flickr / gadgetdude.

Employers don't care which college you attended
While the general public may put a lot of emphasis on a graduate's alma mater, hiring managers do not. When a recent Gallup poll asked over 600 business leaders if they considered where an applicant received his or her college degree a very important factor in the hiring process, only 9% said yes.

When members of the public were asked the same question, 30% replied that they thought companies considered this issue very important.

What did managers consider the most important factor when deciding whether or not to hire a college graduate? A whopping 84% said that the amount of knowledge a candidate exhibited about their chosen field is very important, while 79% noted that applied skills were also a major consideration.

Overall well-being is just as high in public college grads as their private-school peers
Gallup and Purdue University interviewed over 30,000 college graduates on their feelings of employee engagement and well-being, and found no differences between graduates of public colleges and private schools. What did matter to post-college feelings of success and happiness were the positive experiences graduates encountered during their college days.

The most highly rated experience, regardless of the type of college attended, was having at least one instructor that made learning fun and exciting.

Costs at public colleges are usually much lower
This fact is widely known, but takes on new urgency in light of the two Gallup surveys.

For example, the level of student debt in the Gallup-Purdue study had a direct effect on the feelings of well-being experienced by college graduates, with a mere 2% of those shouldering between $20,000 and $40,000 in college loan debt describing themselves as "thriving".

This is huge – particularly since employers don't put much emphasis on whether job applicants attend public or private schools. As one of Gallup's researchers commented, "If you can go to Podunk U debt free vs. Harvard for $100,000, go to Podunk. And concentrate on what you do when you get there." With college debt levels at crisis proportions, those are definitely words to live by.

A public college education isn't the only investment that pays great dividends
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Read/Post Comments (2) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 18, 2014, at 2:54 PM, twocents2much wrote:

    Completely misinformed.

    Harvard, Yale and Stanford offer much bigger aid packages for all students, including those from the middle and even upper middle class, than public schools do. Families making as much as $160,000 can pay zero. No state school allows that.

    If you go to another state's public college, you are gong to pay a fortune.

    Employers may say they don't put much weight on schools, but a) they're probably lying so they appear not to be snobs and b) they may mean they don't value Purdue very much more than Rutgers. Harvard vs. Appalachian State: different story.

  • Report this Comment On May 18, 2014, at 8:55 PM, Fauquier wrote:

    Go to a public school and prepare to get trounced (unless you major in something really marketable, such as chemical engineering). Employers do care where you went and it is a known fact the Ivy League graduates have connections that are unavailable to their public school counterparts. Why would it be so competitive to get into an Ivy League school? Because one can have one's pick of choice, high paying jobs. Public school grads -- one is lucky just to have a job offer, it is definitely likely to not be a choice position, and it will be far less lucrative.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2958949, ~/Articles/ArticleHandler.aspx, 8/30/2015 10:28:49 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Amanda Alix

Foolish financial writer since early 2012, striving to demystify the intriguing field of finance -- which, contrary to popular opinion, is truly what makes the world go 'round.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes