Kotlikoff compares two students, neither of whom borrow for their education. One becomes a doctor and the other a plumber. After 11 years in school, the doctor earns $185,895 annually. After two years in school, the plumber earns $71,685. When accounting for the educational costs, foregone earnings, federal and state income taxes, payroll taxes, Social Security benefits, and Medicare Part B premiums, the doctor’s sustainable spending year in and year out from age 19 through 100 is $33,665. The plumber’s is $33,243. Obviously, someone who wants a medical career won’t choose plumbing instead based on these numbers. Yet in many fields, a technical education rather than a college degree is an option well worth exploring.
