Monday, May 9, 2011

A typical college student graduates with $22,900 in loans...I say this is AWESOME!! Read why here...

The graph below shows the average student debt load over time a student accumulates when they graduate from college---$22,900.  Yes, this is quite a bit of money, but NOT alot.  The income the average college graduate earns over the course of their working life will pay this back and MUCH MORE.  You are more likely to stay employed over time and if not, then more likely to find work sooner.  You are more likely to work in a job you actually like and have a passion for.  This is not to say people without degrees don't experience these things too, but the ODDS are much less then with a degree.  Is this piece of mind worth alittle (alot)?  What else could you spend/invest $22,900 on that will earn you a rate of return that amounts to several multiples of that $22,900.  It is the price of a moderately price car that will last you less than 10 years.   

While I agree that the price of college tuition is too high (whole other discussion), I am not sure so much hand-wringing should surround the level of debt. You get what you pay for, so don't go to school just to get a degree. Go to school to get an education (yes, there IS a difference) that will repay you not only in dollars, but in quality of life and piece of mind.  Where am I going wrong???? Take your shots.
Source: Real Time Economics

""In the long run, the investment is probably worth it. Education is a much better reason to borrow money than buying cars or McMansions, and it endows people with economic advantages that the recession and slow recovery have only accentuated. As of 2009, the annual pre-tax income of households headed by people with at least a college degree exceeded that of less-educated households by 101%, up from 91% in 2006. As of April, the unemployment rate among college graduates stood at 4.5%, compared to 9.7% for those with only a high-school diploma and 14.6% for those who never finished high school.""
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