Tuition, fees, and room and board have increased rapidly. These costs may encourage you to begin thinking about alternatives to college, particularly if you or your family will struggle to come up with the money to pay for college.
As a young child, you probably heard over and over how important it is to do well in school so you can get into a good college. In many households, college is non-negotiable, and kids are told they must attend. But is the cost of getting that degree worth it? I’m sure you have seen the news headlines that state how education debt is preventing so many young people from starting their lives. So, how do you decide whether higher education is the right decision?
According to data from educationdata.org, the average cost of college tuition and fees at a public 4-year institution has risen 179.2% over the last 20 years for an average annual increase of 9.0%. Back in 1973 (the year I was born), the cost of tuition for a public 4-year college was $514 per year. By the time I graduated high school the cost to attend that same college was $2,117. When my son graduated high school in 2015, the cost was $8,778. This example may not seem that drastic to some folks, but when the rising costs of tuition outpace the rate of inflation by 171.5%, there’s a problem.
There are many reasons to consider going to college. For decades, research has shown that a degree is almost always worthwhile. I personally wouldn’t want to see a doctor or lawyer who doesn’t have a degree. There are so many occupations that require an education and that’s where weighing your options comes into play. I have spoken to many people who have said the college experience was well worth the thousands of dollars of debt. Making lifelong friends, learning to navigate through life as an adult, and just hanging that degree on the wall is something they don’t regret.
Some pros of attending college include:
Some degrees with the best ROI are:
A traditional four-year institution isn’t the only type of college you can attend. Consider attending a trade school, community college, industry-specific education program, or even learning on the job. And don’t forget the free education the internet provides. There is a ton of great information out there to get you educated in any field of interest.
So now that we know some pros to attending college, let’s talk about those cons.
Well, as I mentioned above, the cost is probably the biggest con. Tuition, fees, and room and board have increased rapidly. These costs may encourage you to begin thinking about alternatives to college, particularly if you or your family will struggle to come up with the money to pay for college.
Student loan debt may also be a challenge to pay back later. According to the Federal Reserve Bank of New York, millions of Americans have student loan debt, amassing to more than $1.6 trillion. Depending on your student loan repayment plan, you could be in debt for 10 to 30 years.
I personally know many people who have a college degree, work in a field that has nothing to do with that degree, and are still paying student loan debt well into their 40s. How do you build wealth, raise a family, and enjoy life when you still pay for something you don’t even use?
Borrowed Future on Netflix is a great documentary to watch. It uncovers the dark side of the student loan industry and exposes how the system is built to work against you.
High-paying jobs are not guaranteed. While a college degree is often promoted as a path to making a larger salary, it can be tougher than you’d expect on the job market. The average starting salary for college graduates right out of school is about $51,000, according to the National Association of Colleges and Employers. While that may seem like a comfortable income for most, many graduates will earn less than that. And unless you have no other expenses and no student loans, you may struggle to make ends meet.
It could take longer than 4 years to earn that degree. Some degrees require longer schooling, and if you are only going part-time, it could take several years to graduate. For every additional year in school, you rack up expenses and likely will need to take on more student loan debt to pay for your education. Taking six years or more to graduate can cause you to leave school with even more debt, and it may be difficult to dig yourself out.
Although most high-paying jobs still require a degree, there are so many that don’t. Check out this article from US News.
The bottom line is, while a college degree is associated with numerous benefits, it still may not be the best choice for you. There are many alternatives to college. Be creative and do your research. Really think about what it is you want out of life and the type of lifestyle you want to live.
If you are struggling with making that decision. A financial coach can help. Text, call, or email today. Mention this newsletter and get a one-hour session for free.
Learning never exhausts the mind.
- Leonardo Da Vinci
