The Real Value of College

The article The Real Value of College by Kevin Carey Made some great points and looks at the issue at many different angles. Carey makes the point that college is not for everyone; however college opens the doors of opportunity. The cost of college is also different from other costs. Carey compares it to buying a car. Anyone with enough money can buy any car they want. On the other hand, money does not necessarily buy a college degree. Students still have to engage in various activities prior to college in order to get accepted. Once accepted, the student still has to put in the work in order to earn the degree.
            I think Carey brings up some great ideas and viewpoints to this matter.  College is expensive and will most likely put a student in debt, but how many people actually regret getting their degrees? Probably not many would be my guess. The biggest problem is when students go to college and are not prepared. These are the students who will regret their time and money spent at college mostly because they did not make the most of the opportunity that presented themselves and they also left without a degree.
            College is getting more and more expensive which has made the value of a degree ambiguous. The cost of school will continue to rise, but the average lifetime earnings of someone with a college degree will be worth it in the long run. Bottom line is college is not for everyone, but it will most likely not put anyone in a bad position who finishes. People don’t regret their degrees or the life lessons they learned in those college years. In my opinion college opens up doors and keeps people from being limited. Unless you’re an entrepreneur, college is going to be needed in most cases.

IS A COLLEGE DEGREE WORTHLESS?

The article Is a College Degree Worthless? By Jack Hough instantly caught my attention. I have often wondered about the value of a college degree. Education is valuable without a question, but a degree and an education are two separate entities in my opinion. This article does a great job looking into the value of a degree using examples and scenarios. The first and possibly the best scenario is a comparison of two people, Ernie and Bill. Ernie does not go to college and begins working right away. He starts off earning the standard wage of a high school graduate. Bill goes to college, racks up some debt and graduates. After graduation he begins a job earning the standard wage for a college degree. By the time the two are 65 years old. If Ernie saves 5% of his paycheck monthly he will have more money than bill. This seems unrealistic, but Ernie basically got a head start and Bill had to dig himself out of a hole after college. Bill may start out making more money, but he is four years behind as well as in debt to his degree.
            I see from a financial perspective how a degree can be seen as a bad idea, but if a degree will get someone to the job they want then I feel that it is all worth it. Being happy in life is much more valuable than getting ahead financially at an early age. I personally would not be to where I am at today without a Bachelors and Master’s Degree. Regardless of what I learned or didn’t learn, it gave me the credentials I needed to get my foot in the door. I know I will be much happier at the end of the day doing something that I love than something that I hate regardless of how much I make. I think that is what it all comes down to. What do you want to do with your life? If you want to be a doctor, lawyer, or teacher, you will need a degree or it will simply not happen. If you finish high school and are unsure about your future plans than maybe college is not the best option at the time. Start working and find out what you want to do before you come in a mountain of debt without any direction.

In Debt to Your Degree

          The article In Debt to Your Degree, by Brian Taylor discusses various reasons why people are in so much debt after college. Taylor states the main two reasons why undergraduates, graduate students, and people in the work force are experiencing so much debt from college has to do with increasing tuition rates and the use of credit cards with high interest rates. Tuition costs are going up, federal financial aid is declining and students are then forced to turn to private loans with possibly atrocious interest rates. With high interest rates, paying off the balance can take longer and longer. With that being said, many students only pay off the minimum payment required. Only paying the minimum will most likely take a student decades to pay off a loan of upwards of $30,000 or more.
            Credit cards are also a contributing problem. Students sign up for credit cards with an interest rate of upwards of 20% to buy books, supplies, even food and rent. This trend has contributed to the increases in debt students have accumulated.
            I felt this article was extremely simple, clear, and could possibly open the eyes of students making poor financial decisions during their years as a student. It broke down the common problems associated with the relevant debt problems of students. The majority of this information was nothing new to me. I am shocked when people sign up for credit cards with ridiculously high interest rates and I am baffled by people who cannot figure out why they never pay off bills when they only pay the minimum. The minimum pays off mostly the interest accrued and not the principal which in the end keeps the person in debt from making much progress.
            Overall I feel that this article was worth reading and could have some real value if read by students entering college or about to graduate. New students will see what traps to avoid while graduating students can learn about repayment methods and financial choices that will affect their overall debt.