News Medical: Avoiding Expensive Colleges can Lead to Bigger Financial Problems in the Long Run

November 10, 2021

News Medical Life Sciences recently published research co-authored by Carey Morewedge, Professor of Marketing, on the financial return in higher education. The research was influenced by the perception among some students that choosing more expensive colleges seems like an unwise financial decision due to the large student debt burden they may face after graduation.

Through their study, the researchers found that college decisions focusing on financial information increased preferences for low-cost low-return colleges over high-cost high-return colleges, also revealing that low-cost low-return colleges not only provide lower lifetime income, but also lead to a higher chance of bankruptcy after college. The study not only will help parents and prospective students during their college search but may also influence colleges and universities to reevaluate marketing messaging.

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