One of the most rapidly expanding forms of debt in the U.S. is student debt exceeding credit card debt in 2010, which is soon to pass the $1 trillion mark. It’s been engrained in our culture that if young students don’t earn a degree, they’ll never be able to find a good job. With a little research and common sense, people can realize that this is not as absolute as they may have been led to believe.
While education is important, there are ways to get a good degree without plunging yourself into massive debt. While no one should have to clear their dreams off the table, it’s important to be realistic about the obstacles that will inevitably be their path, as well as what can and cannot be done to get around them.
The average undergraduate leaves not only with a bachelor’s degree, but with over $25,000 in debt as well. Graduating from college typically represents the real beginning of a young adult’s life on their own. That’s one amazing roadblock to have placed in the path for what will be many graduates first time completely on their own.
People first have to realize that debt is their own, and that no one is going to come to their rescue. One of the most popular reoccurring themes of the “Occupy” movement has been that recent grads have wanted their tuition debt to be cut. The simple truth of the matter is that the government cannot afford to pay for a trillion dollars in student debt. Aside from the country’s financial troubles, it’s not the responsibility of government to pay off student loans.
While a college education is a great thing to have, it does invariably fall into the same category of auto insurance: people can survive without it. Having a college degree is not a birthright.
Another thing to consider is that too much emphasis is placed on attending Ivy League schools. The average Harvard student can expect to pay an average of $185,000 over four years. Many people are starting to ask, for what? Most employers will tell you that at the end of the day, they care more that you just have a degree, and not where it came from.
Yes it looks good to go to one of the best schools in the country; however there are many other schools that will allow you to earn the same degree at a fraction of the price. Any stigma over going to a state or community college to begin ones education should be forgotten about. There are many variations of so-called 2+2 programs, in which a student can take their core courses at the community college and move on to a state school to complete higher level courses, all the while having saved a great deal of money. (Scholarships and grants are also a great thing to be on the lookout for as well.)
After all this, if you wish to go on and complete a master’s program or doctorate, make sure you ask yourself whether or not it is really necessary to obtain your dream job? If you can get to where you’re going without spending an extra twenty thousand, then why wouldn’t you?
If you do need a higher degree, there are hundreds of accredited state and local schools which can provide such degrees for you while will look just as good on your resume. Higher up colleges would never dream of competing in prices, leaving them free to charge whatever they wish.
Dreams can still be accomplished, but you shouldn’t have to risk so much debt to achieve it.
Photo Credit: Wikimedia Commons
The Discussion
If you go to an Ivy league school, you go there for the contacts more than the quality of education. They are charging for that exclusivity of contact to the halls of power and influence that last long after you leave. If there is one thing Obama, if truthful, would tell you is that it is who you know not what you know (teaching Constitutional Law - ha!).
That doesn't mean that education is not needed, far from it. Educational degrees are a benchmark and pass or reject at all companies for certain positions. If you can go to an Ivy league school - great - let daddy or your intellect get you there. If not, then be practical and find the least cost alternative.
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An interesting thing to look at is the lists of colleges that have the highest average salary 5 and 10 years out of college. At the top are the Ivy Leagues and the 60,000/year schools. Laurens point about financial aid is also right on. Many of these schools have made their education affordable
Jesse: Well done.
I earned my BA before any of you millenials were born...what's relevant about my experience v. yours? I paid for my own tuition and expenses with a combination of scholarships, work/study and a tiny loan - which my parents assisted in paying off over my last year of school. Liberal Arts degrees were sought after in the late 1970's for the entry level jobs in corporations - I landed an average job at an average salary, some 18 months after graduation.
"You get out of it what you put into it." (S**t my dad says) It happens to be true in my case. I parlayed a BA in English Lit and that entry level job (annual salary $10,000) into a career in marketing research and retired at the director level with a 6-figure salary. You would need at least an MBA to accomplish that now.
There is absolutely NO reason to think that "pedigree" schools contribute to one's personal bottom line. In my own professional experience, a degree from an Ivy Legue college was no different than a degree from a midwestern State school. You get out of it what you put into it.
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As one of those college grads with a hefty bit of student loan debt, I am facing the reality of the diminished value of a BA coupled with the rising cost of attending college. Student loans can be a major hindrance coming out of university that could take years to overcome.
"Any stigma over going to a state or community college to begin ones education should be forgotten about."
This is absolutely correct. I started my college career spending 1 year at Finger Lakes Community College and then 3 more at SUNY Geneseo where I graduated. The dedicated students I met at FLCC were as competent as the ones I met at Geneseo. I know many from both institutions who went on to more "prestigious" places like the U of R, Brown, and Notre Dame. Community colleges often get a bad rap but people should see the enormous value they truly have and utilize them.
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"People first have to realize that debt is their own, and that no one is going to come to their rescue. " This is so true, however, more and more you hear of people who think it is perfectly within their "right" to stop paying off the debt and just walk away. Parents are doing this with mortgages and other bills so this lack of personal integrity is something they see as normal. With movements such as Occupy saying relieve our student debt and the govt asking courts to reduce mortgage debt, this thought is being reinforced. You are correct, the choice to assume this debt is the student's and there are alternatives they can choose. If they choose the more expensive there is a responsibility to fulfill the commitment.
I agree that a less prestigious school can give the same education - as long as a student is willing to make the most out of it. However, your example with Harvard may not be the most accurate - the top three Ivies, at least, actually offer some of the best financial aid for middle class families and don't require families with incomes up to $60,000 to pay anything. Moreover, many schools have eliminated student loans from their financial aid packages and others guarantee students to graduate without debt. Most students don't end up paying the sticker price of the school.
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