Ivy League Pay Day

A new study released this week indicates students who attended Ivy League institutions are ahead of the pack in starting pay – and they're still doing better than their peers by mid-career.

The number one school for a career boost? Dartmouth. According to the PayScale.com study, a Dartmouth grad typically earns a median salary of $68,000 right out of school and is raking in a median $134,000 by mid-career. That's pretty hefty, especially when compared to a New York University grad with a median starting salary of $50,300 and a mid-career median of $95,600.

But keep in mind that only seven out of 100 applicants are even admitted to Harvard for the class of 2012. So what if – like most of us – you didn't attend an Ivy League institution? Rest assured, things are still going to be okay!

Here's why you should keep your chin up if you went to a liberal arts college, poly-tech institution, or – heaven forbid! – a state school:

Sure, according to PayScale.com's figures, Princeton grads earn a median starting salary of $66,500 and Harvard's earn $63,400. But several non-Ivy schools have median starting salaries in the same ballpark: Polytechnic Institute of New York in Brooklyn, is $62,400, Cooper Union in New York City is $62,200, and Carnegie Mellon in Pittsburgh is $61,800.

The average income for all American households is $48,451, according to the 2006 U.S. Census and several state schools boast graduates with mid-career median salaries well above the national average. Graduates of Rutgers University in New Jersey, for example, earn a mid-career median salary of $91,800. Comparable to that are UCLA with $101,000, and Arkansas State University with $63,300.

However, keep in mind that PayScale.com only measured a certain segment of the population. PayScale.com's study analyzed data from mostly white-collar employees who are salaried or paid an hourly wage, says Al Lee, director of quantitative analysis for PayScale.com. That means gainfully employed, tax-paying individuals like freelance writers or actors are not included. Also left out of the study was anyone with an advanced degree – no MBAs, Ph.D's or Master's degrees. "Of course, a law degree from Harvard is going to factor in your future pay," Lee acknowledges.

"This is the kind of study that feeds the frenzy" and obscures the fact that elite colleges have "burdens and costs people don't think about," says Rachel Toor, a college admissions consultant and author of Admissions Confidential: An Insider's Account of the Elite College Selection Process. Students at elite schools must find a way to finance their costly education and are under pressure to succeed academically.

Finally, don't forget that one little fact that also contributes to how much someone pulls in at work: the employee. In a 2000 New York Times (NTY) op-ed, Alan B. Krueger described a study he performed with colleague Stacy Dale that concluded the earnings for students accepted by both highly selective and moderately selective universities were similar. In other words, students who chose to attend less selective colleges -- despite getting into more elite schools -- still earned comparable pay.

So rest assured MainStreet – even if you didn't attend an Ivy League, you can still earn more money than your neighbors.

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