COSTS OF EDUCATION: COLLEGE IS AN INVESTMENT SO ONLY BORROW MONEY IF THE JOB PROSPECTS ARE GOOD

COSTS OF EDUCATION: COLLEGE IS AN INVESTMENT SO ONLY BORROW MONEY IF THE JOB PROSPECTS ARE GOOD

Matt HealeyTuesday,26 February 2013

The Snap:

Jackson Mead sent me a tweet about trying to tackle the problem of the costs of higher education. I started looking into the problem because it has begun to get some attention. This is a very thorny and multi-faceted issue. Because of this it will have to be covered in parts. This part will cover educational choices.

The Download:

The amount of money that students have to borrow has gone up. This in not in dispute. The reason for this is the cost had increased. I am not going to get into the reasons for the cost increases in this post, but the increases are resulting in graduates with much more in student loans that they will have to re-pay. Now if the loans result in a high paying job with a good prospects for advancement, then the investment would be worth it. If they do not, then it will be a bad investment.

The question is how does a student figure out what to study if they have to borrow a lot of money to attend college. The easy answer is do not borrow money unless you are getting a STEM (science, technology, engineering, and math) degree. It is clear that these are the degrees that employers are seeking. Studying these subjects will increase the chances of being able to pay back the loans. On the other side, it is a more difficult to justify, on economic grounds only, borrowing money to get a degree in the arts. The job prospects for students with degrees in topics like Literature, Art, and Philosophy are not as bright as STEM degrees. So, the basic advice for prospective students is to treat college more like a trade school. Learn a trade that employers need. Borrowing money to get a general education with today’s costs and job prospects is not a good investment.

Hat Tips:

Jackson Mead, College Costs, Employment for STEM degrees, Image Credit: Flickr

Take Action!



Trackbacks

  1. […] is the second post on the topic of the rapidly increasing cost of college. As was mentioned in the previous article, the costs of a 4 year undergrad degree has skyrocketed over the past several years. This is […]

Subscribe to get updates delivered to your inbox