Student Loan Debt: Is the College Degree Really Worth It?
Many students attending college can do so financially only if they take out significant student loan debt. Whether parents cannot or will not contribute financially in a significant way, the student is left to piece together a hodgepodge of financial means to get through college. Many students work part time in addition to carrying a full load of college courses. These same students may receive grants and scholarships as part of their financial aid package. Still, paying for college as well as the basics in life often requires that the student incur student loan debt.
For those students who could make it through college without incurring student loan debt, the availability of student loans may still be tempting. With the boost in your income from student loans, you could drive a nicer car or rent a nicer apartment. These students should definitely think twice (or three or four times) before incurring student loan debt just to increase their current quality of life above what is already acceptable. Many people think back to their college years and pine for the simple, cheap lifestyle they once lived.
The Professional Salary Minus Student Loan Debt Payments Equals What Have I Gotten Myself Into?!
Assuming the college student is attending college at least in part to better their future financial situation, the question becomes, is it worth it? Will that degree really earn that much more money than a non-college-degree-route? When you add in student loan repayment to a post-college career, sometimes the answer is not so clear.
Obviously, some people attend college for reasons that have nothing to do with bettering their financial future. These people may attend college to expand their intellectual world. Although there may be valid non-financial reasons to attend college, this article focuses on those people who attend college with the idea that they will be better off financially in the future as a result.
The Often Overlooked Lost Wages Opportunity Cost
Lost wages during the years you attend college is one aspect that many people do not think about when deciding whether a certain college degree will better their financial future. If you worked full time for four years and were able to save a reasonable amount of that income, would you be better off financially than if you went to college (often increasing your debt rather than your savings)? Do not overlook the powerful effect of compound interest.
The Particular Type of Degree May Hold the Answer
It is difficult to determine whether it is worth it financially to attend college if you do not know what the median salary will be for a person with your particular college degree. Do some research, and determine what will be the best path for your financial future.
Published by Lori Wheat
Lori Wheat is a progressive, reformed attorney turned freelance writer, gardener, and property manager. She lives with her wonderful husband and adopted greyhound dog in Norman, Oklahoma. View profile
Five Reasons Why Student Loan Debt Isn't so BadAs someone who has survived paying them off, student loans aren't as bad as they seem. Here are five reasons why student loans aren't a complete nightmare.- Seven Ways to Reduce Student Loan DebtSeveral programs that pay portions of your loans in exchange for service
- Should You Consider Student Loan Consolidation?A review of the reasons and method to consolidate federal student loans.
- A Review of the ACS Student Loan Consolidation ProgramHaving a hard time grasping the idea of graduating with student loan debt? Consider this.
- Federal Student Loan ForbearanceThis article will highlight ways to delay a student loan payment.
- Student Loan Debt: What Have I Gotten Myself Into?
- Get Rid of Student Loan Debt
- Cancelling Student Loans for Teaching Service
- 5 Easy Steps for Student Loan Consolidation
- Helping Your College Student Get Out of Debt
- Repaying Your Student Loan
- Reduce Your Student Loan Debt
13 Comments
Post a CommentNathaniel Clager - I agree wholeheartedly with your entire comment except "A proper liberal arts education is well worth the money." I'm not saying it definitely isn't, but I think people should use independent thought about whether it is the right thing for them. There are lots of ways to gain an education that do not include college. Thinking before incurring student loan debt is one way to "[not] let this country turn you into brainless consumers."
We are not just cogs in some economic wheel. There is a need for abstract thought. A proper liberal arts education is well worth the money.
Don't let this country turn you into brainless consumers.
I've often wondered the same thing. My nephew is still trying to pay off his debt and it is making it difficult on his family.
I happen to think we don't have enough people in vocational education and that college is simply not for everyone. Of course, having taught some college courses I have the perspective of having seen too many students there because they were pushed to go to college. It isn't worth the cost if the students don't want to learn. That is my take. Good article!
I know many (too many...) people who are struggling to pay off college debt... Great read!
great article
I don't regret college at all - that's something I would do over again regardless of student loan debt. But I do regret law school. I would definitely recommend lots of thought and research before deciding to pursue a graduate degree. Good article.
I know that when I was at university, I was determined not to go into debt. The year I started university was a fortunate year because tuition fees were added the following year to British students. I was able to avoid all that, as I had started off tuition free. But I made lots of cut backs, used my student grant (free) and ignored all the credit card offers that came in!
Sophie
If you have to depend on loans for a significant part of your college funding, then its not really worth it.
I have recently discovered your writing, and already believe you to be a very capable writer. Well done.