Is it financially better to go into debt to go to school or go straight to work? Statistical Answers
Imagine accumulating more than $30,000 in debt to study something that may seem useful, only to find out post college graduation that your degree is almost worthless. This is a challenge many college graduates are facing today. It seems like employers are looking for experience first and education second. This, among other things, is a leading cause for deterring recent high school grads from attempting the college life.
On the other hand it seems like in order to be branded as successful one must go to and graduate from college. After all it’s what we’ve been told since we were young: going to college equates to making lots of money! Whatever the case may be one thing’s for sure, with enough ambition almost anything is possible.
Which path is right for you? Are you a go getter that’s ready for a shot at financial independence now, or do you strive to further your education in hopes of obtaining a brighter future? Whatever the case may be, we’ve prepared a brief guide highlighting both sides of the argument.
Hopefully with this information you’ll be able to decide which course of action is right for you: attending college, or joining the workforce.
Viewpoint A: High school is not enough
Job security: Today’s dramatically changing job market maintains competitive entry-level requirements – options that may have been available to your parents no longer hold true for you. For instance, when the baby boomers flooded America’s job market, a high school diploma was enough to assure employers that job seekers could handle the basic tasks in their organizations. Once recruited, most large companies ensured that the baby boomers were provided with internal training and development programs. This meant that the generation which is now enjoying its well-deserved retirement usually worked for just one or two companies during their entire career.
Unfortunately the global job market doesn’t allow for such luxuries anymore – yes, stability in one company is a luxury! In fact, most workers entering their first job today are expected to change career paths at least seven times before they find their niche. This could be one reason why there is such a heavy emphasis on education – few companies can afford to invest heavily in employee development. Instead they expect job seekers to develop their own skills before they come aboard. The most obvious way to go about doing this: obtain a college degree.
Increased earning power: It is generally accepted that greater level of education you peruse, the more money you will make… and well the figures don’t lie. According to the U.S. Census Bureau, workers with a college degree make nearly $25,000 more per year than workers with only a high school education. When compounded, this figure amounts to more than $1 million more in lifetime earnings — how’s that for retirement?
So, how big a burden is the average loan for college graduates? Actually, pursuing degrees in high-paying professions helps you earn much more – at least threefold more than what you must pay back. For instance, if the average law student graduates with over $80,000 in debt, s/he can easily expect to earn an average of $100,000 once s/he graduates. Or take business-school grads. They may have to take loans to the tune of $40,000 and above, but upon graduation, they get jobs that pay at least $90,000 a year. (Graduate Management Admissions Council figures)
Viewpoint B: Attending college is a waste of time
A world of opportunity: Not everyone can afford to invest the amount of time and money required to becoming a full time student right after high school. For many people the lure of having a few extra dollars in their pockets and being offered a chance at financial independence is too much to tie them down for at least four more years of classes. Instead these people choose to live in the now and wish to have full time jobs that prepare them for real-world challenges. In fact many professionals start their careers in retail sales, customer service, and various other jobs that offer immediate training. As ironic as it sounds, some people are just too ambitious for college.
College degrees don’t cater to real-world challenges: Yes, a college degree program does refine your critical thinking skills; however, very few colleges and universities can actually prepare you for the majority of real-world challenges. In most colleges, the closest parallel to the working world you’ll be exposed to is being required to complete and submit your assignments on time. In short, most college experiences rarely match the demands of a regular full-time job.
Moreover, if the regulated method of teaching doesn’t suit you, you may find that though you didn’t do too well in high school, you are quite comfortable once you enter the workforce. These environments don’t have the tedium of the classroom, and can actually encourage you to succeed on your own terms. Just look around, you’ll find MBA graduates for sure, but the entrepreneurs – the guys who actually make it big – may not have those much coveted degrees. Many successful entrepreneurs and business leaders have achieved success with little more than a high school diploma.
The price of the degree may not be worth paying: Numerous degrees in low-paying fields are really not worth the effort and money we spend on them. Some of these degrees are actually quite useless as you can get the job you desire if you simply remain in the workforce. You really don’t need to spend all your time and money on a course that brings you no monetary benefits.
A job allows you to plan your future: Most youngsters are unaware of the career paths they wish to take, many of them use college as a self-seeking quest; some even have to stay until grad school before they figure out what they’re suppose to do. However, in this process these youngsters end up collecting a huge debt. Instead if they had worked for sometime before going to college, they could not only have built their education fund, they would also have a better idea of what they want to do.
While we cant advise you on an individual basis to determine what’s right for you, hopefully we’ve given you some insight into making the decision that will maximize your earning power and give you a lifestyle you’re comfortable with.