Do You Think There is a Higher Education Bubble?
There’s no doubt that post-secondary education is becoming out of reach for more people. A college degree is becoming less valuable, as well. While there’s enough blame to go around, something must be done.
“A key measure of the benefits of a degree is the college graduate’s earning potential—and on this score, their advantage over high-school graduates is deteriorating. Since 2006, the gap between what the median college graduate earned compared with the median high-school graduate has narrowed by $1,387 for men over 25 working full time, a 5% fall. Women in the same category have fared worse, losing 7% of their income advantage ($1,496).
A college degree’s declining value is even more pronounced for younger Americans. According to data collected by the College Board, for those in the 25-34 age range the differential between college graduate and high school graduate earnings fell 11% for men, to $18,303 from $20,623. The decline for women was an extraordinary 19.7%, to $14,868 from $18,525.”
This article proposes two suggestions for correcting this negative trend. Be aware of your options when considering college for your child or yourself. Online learning is not the joke it used to me. There is even quality, free education online through companies such as Coursera. If traditional college is your only option, find a school that’s fiscally sound. Include in your search state and community colleges. Ask administrators tough questions about Cadillac amenities, expensive sports programs, luxurious tenure and other bureaucratic expenses.
If you decide against a school because it doesn’t meet your fiscal standards, write a letter to the college president telling them why. Colleges are competing in a free-market system just like all businesses. Over time, they’ll realize enrollments aren’t in the bag if college applicants are tough customers.
Higher Education Solutions for You!
We don’t want you and your family to get sucked into the bubble and end up spending your life in debt due to student loans. To avoid the high costs of college we have written a student guide to being Money Conscious. Being a money conscious student and getting your parents help to get this started off before you even apply to college is key. Download a copy of #MoneyConscious today on Amazon and start your path to being a debt free student!