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College grads weigh costs of education
Graduation at Purchase College in Purchase, N.Y.
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Maria Griffo, left, and Diana Das are both cinema studies majors at Purchase College. Griffo says she borrowed more than $30,000 to pay for school.
Environmental Studies major Robert Shao worries about finding a full-time job. He plans to live with his parents while he looks for work.
Delorean Briggs studied New Media at Purchase College. He worked two jobs and borrowed about $14,000 to put himself through school.
Seventeen years after dropping out of college, Kevin Higgins came back to finish at Purchase when he lost his job. He says without a college degree he could only go so far in his career.
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Kai Ryssdal: Here's a thought to sober up all those college graduation parties: Students who did manage to cross the academic finish line are about to come face to face with the cost of the education they just completed. The first student loan bills are going to start showing up in about six months, and that'll surely spark a new round of questions about whether or not college is worth it.
From the Marketplace Education Desk, Amy Scott reports.
AMY SCOTT: In a hallway in the music building at Purchase College in New York, seniors in black gowns line up by major. In a few hours, they'll graduate in front of their parents and friends. Some have started celebrating early. You can smell it on their breath. They'll have to get serious soon enough.
ROBERT SHAO: I'm pretty concerned right now. It's kind of scary. Just coming out of college, you know. It's a lot of pressure to find jobs, and it's kind of hard.
Environmental studies major Robert Shao worries about finding work. Others are tallying how much they owe.
MARIA GRIFFO: All in all, I think it cost maybe $35,000. I think. Most of it is in loans.
Montea ROBINSON: $26,030.
DELOREAN BRIGGS: A good 14K. Not bad.
Purchase is a public college, part of the State University of New York. At $4,900 a year, the in-state tuition is at the low end of the spectrum. But seven years ago it was just $3,400.
Students like Maria Griffo wonder if they got their money's worth.
GRIFFO: If I knew exactly what I wanted to go to college for right when I was jumping in and committing to that much money, it would have been worth it.
But Griffo didn't really know what she wanted to do when she started at Purchase. She majored in film studies and then realized she wanted to be a teacher.
GRIFFO: I learned so much about the history of film and cinematography, and it was wonderful. But not very useful. Not for 35 grand. I could find that out online.
In the last few decades the sticker price of college has risen faster than just about everything else we buy, even health care. There are lots of reasons: cuts in state funding, expensive health benefits for faculty and staff.
Anya Kamenetz writes about the cost of higher education and student debt. She says schools are under pressure to build fancier dorms and fitness centers to compete for students.
ANYA KAMENETZ: As much as parents might marvel at these kinds of extravagances -- the climbing walls in the gyms, the free electronics giveaways to freshmen, or high-speed Wi-Fi in every dorm -- college presidents tell me that this is something that families are demanding.
Kamenetz says tuition is rising for a couple other reasons too. The easy flow of student loans helps mask the cost. And families still think college is the key to success for their kids. Studies have shown you earn a lot more if you go to college.
KAMENETZ: Over a lifetime, assuming you manage to get the degree, on average, it's still a good deal. And as long as people can say that, they can justify almost any price.
But we may be reaching a turning point.
Economist Richard Vedder directs the Center for College Affordability and Productivity.
RICHARD VEDDER: In our zeal to get everyone a college education, we're finding more and more people going out with a bachelor's degree that are having a hard time getting a job that fits the skills that they believe they picked up in college. And maybe the notion that everyone should go to college is one that we need to rethink in light of this labor market experience.
GRADUATION: Now the degree candidates of 2010, will you please rise and be recognized...
Of course, finding a high-paying career isn't the only reason people go to college. At the Purchase College graduation, some of the other reasons are on display on the beaming faces of parents and students like Delorean Briggs. He worked two jobs and took out loans to put himself through school.
BRIGGS: I think the experience itself was like the best experience I could possibly have. I'm actually happy that I came here. It just feels good to be leaving now.
Graduate Kevin Higgins had 17 years to try out adult life without a college degree. He decided to go back to school after being laid off from his job in retail.
KEVIN HIGGINS: If had just continued going down the path that I was going, there was always a ceiling that I'd hit as far as salary and all that. So I didn't want to do retail for the rest of my life. For me this is more of, not even so much the money, but just moving on to do something that I've wanted to do for a long time.
Higgins wants to become a teacher. Next he plans to get a Master's degree.
In Purchase, N.Y., I'm Amy Scott for Marketplace.
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I think nowadays a college education is a sham. Unless you're going to become a doctor or some kind of skilled technician like an engineer, college is not worth the hefty price tag. For the most part, a college education poorly trains and prepares young people for jobs that aren't available upon graduation. Corporate America and the richest people in the country who own most of the money no longer want to share a piece of their pie with us lowly peons. If you want to really make money these days you should invest your money into starting a necessary or definite recession proof money-making business instead of spending tens of thousands of dollars in hopes that a rich employer will pay you a small fraction of your worth. Working for other people sucks. Why do you think Korean immigrants always invest their money into founding laundromats, deli's, liquor stores and corner stores? Because these types of businesses are recession proof and constantly make money without relying on someone else to cut you an unfair check at the end of the week.
In my book, "The Guide to Success in College", I discussed the easy way to get a free bachelor's degree education--go to a college class the first day, grab a syllubus, then head to the local library and read only the suggested chapters of the books recommended.
Want an associate's degree? Take the aptitude tests, many early courses are a repeat of high school classes, to bring all students up to the same page.
Want a brand name degree? Go to a cheaper college, transfer in to the college of preference the graduating year. Of course, there are some pitfalls to look out for, but that's why I used a book to describe them all :)
If your brother asked you for $40,000 you did not have to invest in a business, and didn't have a plan right then, would you have invested in your own brother? If your child needed the same amount for college, and had no plan for what they would do, would you still invest? Its a bitter pill to swallow, but sometimes, its best to send your children out into the real world, pay real rent for their bedroom in your house, and learn what they really need college for--as an investment in their lives.
If they want to become a bartender instead, then let them. But try to steer them away from the for-profit colleges teaching specialties and promising future employment--typically, a community college can do the same thing for half the cost--and the promised employment may not even be in your state!
An overseas education is worth looking into. Not only is it cheaper and (usually) of excellent quality, it gives students international perspective, which can make a difference when entering the job market. http://www.onpointradio.org/2009/06/the-new-global-student
Great story, and good food for thought. My concern is that the escalating cost of college is also resulting in a subtle form of classism, where the wealthy can gain access because price is not a concern, while the poor become indentured to student loans. If we are to have a just and equitable society, higher education needs to be accessible to all who deserve it, not just those who can afford it.
See "America's Most Overrated Product: Higher Education" for a discussion of the points mentioned http://www.homefires.com/articles/overrated.asp
One can argue about college being worth the cost. However, paying for college via student loans is almost always a bad idea. We have all these students starting life with a $40,000 debt (or more). Great for the banks. Not so great for the student. It is even worse for those who do not choose a high income career or take out all the debt and then do not get a degree.
No, a college education is no longer worth the kind of money that is being spent acquiring the credentials. The tipping point for value return came along about 2000 with the dot-Com crash and has now diminished even further. Employers can get all the college educated Indians and Asians that they need from OUTSIDE the country on green cards. They are cheaper, they have greater control over them, and they are just as smart.
My question is bow many don't make it through college and end up having debt for years hanging over there heads? Making their lives much harder than it would have been had they went for a trade or just jumped into the labor market.
I'm fairly sure no one has the guts to do that study for fear of what they may find.
The question 'Is a college education financially worthwhile?' is inadequate, because not all educations/degrees are equal in value. Graduating with a degree in Frisbee from a community college is unlikley to be a "good value" at any price; however, 100K of dept accrued for an engineering degree from MIT, might be an excellent investment.
Although the value of an education for all citizens might "make the world a better place", the money wasted on frivolous secondary education, or in degrees with unmarketable skills, is a waste of financial resources.
This country needs more and better trade-school-type educations.
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