Let\’s jump right into this topic, as it is and has been a hot-button topic for the last few years. I must admit that I hold a bias in this area because I am a strong believer in higher education. I possess both a bachelor\’s degree and a master\’s degree, which have both served me well in my career. Above the instruction that came with the degrees, I believe that accomplishing this in life shows a level of grit, perseverance, and dedication that makes you better at life. This doesn\’t mean that college graduates will always be higher achievers than those without the degree, as the degree doesn\’t make or break you—it\’s what the process instills in a person. However, I also believe your upbringing, who you allow in your sphere, and your intrinsic motivators are critical to your success in life, only compounded by your education. And, to the point of compounding: I think that life has a way of compounding based on the decisions you make. (Books like The Slight Edge and The Compound Effect speak to this phenomenon.)
In a nutshell, your choices, positive or negative, carry a compounding effect that affects how you make other decisions
—as well as the likelihood of you making different decisions to follow suit with what you have decided is acceptable for you. Pursuing a college degree is required for my field, but it was a decision that slowed my income growth until its completion. It was a choice that awakened intentionality in my life and led to confidence in a number of other important crossroads.
That said, college costs are rising at a ridiculously unsustainable level, so I understand why so many people choose to take the route of a trade school, internships, online courses, or working for companies who will trade service years to cover college costs. I was one of those who took on sizeable student loan debt equaling close to $40k, primarily due to the costs of my MBA. Even though it was hard work to buckle down and pay off those loans, I found that the degree\’s value far exceeded the cost associated with acquiring it. Although the education-need aspect has been focused on, I believe the more outstanding issue is related to the daunting student loan debt people are carrying and the methodology surrounding that investment.
Some people see their college degree serving as their \”golden ticket\” of sorts. However, more companies are looking for legitimate competence associated with that accomplishment;
they weigh heavier than ever on the credibility that you establish through experience in the field and additional certifications on top of your existing education.
You may be ready to seek out an institution for higher education, and I would encourage you to explore your options.
Really—explore your options.
Don\’t just take the first acceptance offer you\’re given; rather, evaluate the four-year cost associated with that education. There is no correlation with higher income resulting from attending an accredited school versus a private school, so I recommend going to a community college for your prerequisites. Then, complete your four-year degree in a growing field at a low-cost accredited institution. And please—be sure that your course of study is in demand! As discussed in a previous course, run your decision through the filter of your passion, talent, and livelihood. (You would ideally hit all three marks.) Go back and read, listen, or watch \”Passion. Talent. Livelihood. Choose Two\” for further insight.
Speaking of low-cost:
Forbes published an article in the summer of last year stating that student loans in the U.S. have topped $1.5T (yes, \”T\” as in trillion, or 1,000 billion, or 1,000,000 million. So, $1.5T is 1,500,000 million! But I digress…). Let that sink in. In addition to confirming the $1.5T number, CNBC also mentioned in an article published early last year that 70% of students graduate college with what they call a \”significant\” student loan balance. That number currently averages over $37k—closely mirroring the amount of student loan debt I walked away with. What was even more staggering was the monthly cost of these loans being close to $400 per month. First-year income for a bachelor\’s degree can significantly differ between fields. Still, you can see why this debt-load can quickly deflate the potential for housing starts that occur from individuals moving out of their parents\’ homes and buying homes, furniture, major appliances, and the like. Now you may be wondering, how do I stay away from college debt? More on that to follow in an upcoming blog.
The United States Bureau of Labor Statistics released in its most recent study that the average unemployment rate of someone with a high school diploma was almost twice that of someone with a bachelor\’s degree.
When comparing earnings alone, it stated that the earnings of those holding a bachelor\’s degree were nearly 65% higher than those with a high school diploma. What\’s more, the Social Security Administration reported a combined $765k more in lifetime earnings with a bachelor\’s degree and $1.3M more with a graduate degree.
Looking beyond the immediate workforce and digging deeper into those who have amassed wealth, I read Everyday Millionaires by Chris Hogan, which discussed the statistics around the most extensive and comprehensive study of millionaires. Within this study, they found that \”88% of millionaires graduated with a bachelor\’s degree, compared to only 33% of the general population.\” Beyond this, Hogan stated that \”52% of millionaires have a graduate or terminal degree, compared to only 12% of the general population.\” These stats are uniquely interesting in that they look much further down the road than immediate unemployment or earnings. Instead, the numbers represent the ability to build wealth and the correlation associated with the decision you most likely made decades prior and the hard work necessary to gain that degree.
With all of the proof in the pudding, it\’s ultimately up to you to decide whether college is right for you or necessary for the career field that you are going into.
Substantiation:
Sited: https://www.bls.gov/careeroutlook/2018/data-on-display/education-pays.htm
Chris Hogan, Everyday Millionaires page 64
https://www.forbes.com/sites/zackfriedman/2018/06/13/student-loan-debt-statistics-2018/#791199647310
SSA
https://www.ssa.gov/policy/docs/research-summaries/education-earnings.html
MarketWatch
https://www.marketwatch.com/story/whats-your-net-worth-and-how-do-you-compare-to-others-2018-09-24
Stats on unemployment;
https://www.newyorkfed.org/microeconomics/sce/labor#/experiences-transitions3
Recent Grads
https://www.newyorkfed.org/research/college-labor-market/index
