UK Degrees Beat US: CEO Saves $50K Yearly on College

In a context where student debt in the United States exceeds $1.7 trillion, and many young people question the value of their college degrees, Liz Baker, CEO of Greater Good Charities, made a decision that allowed her to save significantly on her daughters' education. Baker chose to send her daughters to study in London, a choice that, surprisingly, turned out to be more economical than the university options in the United States. The executive, accustomed to analyzing budgets and maximizing the impact of every dollar in her philanthropic work, found in British universities a more profitable option and, according to her, one with a better educational proposal.

Baker's decision was based on a direct comparison of costs. Tuition in London for her daughters' courses was around $35,000 a year, compared to the $80,000 to $90,000 a year they would have faced at an out-of-state US university. “It’s like, really half the price,” Baker told Fortune, highlighting the substantial savings this represented for her family. This cost difference, added to the possibility of obtaining a degree in a shorter period, made the British option especially attractive to Baker.

The experience of Baker's oldest daughter, who completed an undergraduate degree at King's College London and is currently studying for a master's at the London School of Economics, demonstrates the viability of this strategy. Even considering the cost of a flat in central London, which exceeds $2,700 per month, the financial equation favored the British option. The CEO emphasizes that, regardless of location, accommodation costs are a factor to consider. However, the difference in tuition and the duration of studies in the UK offset these additional expenses.

In addition, Baker highlights that the duration of studies in the UK is generally shorter. Most undergraduate degrees last three years, and if students have enough Advanced Placement (AP) credits, they can avoid an additional year of study. This reduction in study time, added to the lower tuition costs, represents a significant saving for families.

Baker firmly believes that her daughters get a better return on their investment in the UK. In addition to the shorter duration of studies, degrees in the UK are more specialized. Students focus on a single subject and study it exclusively for the entire duration of their degree, which, according to Baker, is better aligned with the skills employers are really looking for.

“I think the curriculum is better because it’s more focused,” Baker said. She herself studied musical theater and criminal justice and had to take irrelevant classes that she would never use in her career, such as “Earth science.” When asked if a British degree is as valued as an American one by employers, Baker replied without hesitation: “Yeah. 100%”.

Student debt in the United States has surpassed $1.7 trillion, and the unemployment rate for recent graduates continues to rise. Millions of graduates are wondering if their degree was worth the price, and a growing number of high-profile CEOs agree with them. David Solomon, CEO of Goldman Sachs, has said he never hires based solely on educational pedigree. Amazon's Andy Jassy has said that an “embarrassing amount” of your success depends on attitude, not credentials.

Baker believes that young people need to question the return on investment more than ever: “If you graduate with an English degree and have over $200,000 in student loan debt, why would you do that?”. The executive considers that British education offers better value for money and a stronger preparation for the labor market.

The story of Liz Baker and her decision to send her daughters to study in London highlights the need to consider alternative options to traditional higher education, especially in a context of rising student debt and questioning the value of university degrees. Her pragmatic approach and her analysis of costs and benefits offer a valuable perspective for parents and students looking for a quality education without compromising their financial stability. Baker's experience challenges conventions and suggests that, in some cases, education abroad can be a smarter and more profitable option.

The story serves as an example of how financial planning and careful evaluation of educational options can lead to smarter and more beneficial decisions for families.