I have read a number of articles in the local paper
regarding the rising college debt of recent graduates. A few facts:
1.
Pennsylvania ranks 3rd in the USA for
per student debt.
2.
On average, each college student will graduate
owing and average of $35,000.00
3.
The class of 2015 is the most indebted class
ever in the history of the USA
College should be an option, but college is not the only
option. The skilled trades can provide a secure income with little to no debt.
College debt survives bankruptcy. College debt survives death. Graduates must pay back their loans before
they have any discretionary income to contribute to our economy.
As a father of a senior in high school, I am advising my
daughter that if she chooses to take the path to a four year degree, she will
have my support. However, she must choose a path where she can generate income
to pay back her loans as well as provide for her own well-being.
As we have begun our tour of colleges and universities of
interest, we heard an admission presentation about deciding on a major. This
university had career counselors assigned to undecided freshmen to mentor them.
These counselors will help the undergraduates choose their path. The counselor was so proud of one example
where she was able to steer a student towards a major in SOCIOLOGY!!!!!! I was
immediately concerned. At no time did the counselor consider career earnings.
At no time did the counselor address debt. According to officials at this
university, student should plan for an annual cost of $34,000.00 per year. At
the end of 4 years, this student would have paid $136,000.00 to earn an average
$17.48 per hour or $39,134.00 per year.
Even if the student qualifies for 50% in scholarship and grant, the
student will be $68,000 in debt. They will have to pay $566.00 per month before
they do anything else.
We have told our children a lie. College or bust!!! Everyone
goes to college. Fifty nine percent (59%) of students will graduate with a 4
year degree within 6 years. Not graduating on
time further compounds the problem.
We have told our children another lie. Community college is
an inferior choice. Community college is a great starting point. Young people
can learn how to be students without being buried in debt. After attaining
24-48 credits at a C level or better, they can transfer to many private or
public institution and finish their degree in 2-3 years. By starting at a
community college, students can save $12,000.00 to $66,000.00 over the course
of their education.
We have told our children a lie. The skilled trades are for
dumb people. Nothing could be further from the truth. Can you do the following:
plumbing, electricity, hvac, welding, repair your care, etc.? These jobs often
pay over $50,000.00. Many have corresponding health care plans, 401K plans, and
other benefits like profit sharing.
Post-secondary education is an investment. Let’s make sure
we are getting an appropriate return on investment.
This is a great point! I can count on one hand the number of my friends who are using their degrees. I can also only count one friend who's paid off their college loan and that friend never finished and makes more than anyone else I know!
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