Tuesday, May 11, 2010

Higher education - a financial mistake?



Now, a college degree is similar to a high school degree a generation ago.  Despite that, many college grads are not getting good jobs to offset earnings lost while attending the college and also typically graduate with a student debt. The average debt range from $ 20,000 in a public university to $33,000 in a private one according to Project student loan, which is about $2 500 to $4 000 a semester. College gives education, first taste of independence as well as responsibilities. It is sort of transition to the adulthood from the childhood. It also gives us the basic educational credential to get into most careers. So, even college is expensive, there is no doubt in my mind that it's necessary. My question is what about higher education after college?

Some of my friends decided to work right after graduating from college. While others, such as me, opted out for full-time graduate degrees. We rationalized that a graduate degree will translate into better jobs and more money. Some friends in the workforce even teased us that we are still in school to avoid real life responsibilities or couldn't find good enough jobs. After a full time graduate school for years, I am making same money as my cousin, who graduated from a college a year ago. Most of my friends who are working already have saved up money to put down-payment for a house, have paid off their student and car loans. Most of them also went back to grad school part time and will be finishing up their graduate degrees. Right now, I have a graduate degree but no work experience or savings. In contrast, my friends have work experience, some savings and partially completed graduate work (if they wanted). I understand that not everything is about money. My graduate education gave me knowledge and additional credentials in form of a degree. However, this extra education seems like a bad financial decision on my part. With the graduate degree, I will probably make similar money as my friends eventually, but it seems that I have I lost significant income during that period. However, another side of argument is that an advanced degree will lead to quicker rise to the top. Hence, a graduate degree in theory should make up for lost income (and more) over time. Let’s see, time will tell. 

5 comments:

  1. I don't have any hard data whether a graduate degree will pay off. But if you are right that a bachelor's degree is comparable to a high school degree a couple generations ago, a graduate degree should set you apart from your peers just like a bachelor's degree would have set you apart a while ago.

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  2. @MoneyObedience, I hope it will set me apart and all other souls who have invested heavily (both money and time) to get a graduate degree.

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  3. I don't think you have had taken a bad financial decision regarding higher education. Its all about personal feelings and understandings. And let me remind you that even though you do not have work experience like your friends do, but you have extra education and that will definitely reap you rewards in the future if not early.
    Personal finance

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  4. Are you straight retarded? without a college degree you have no hope of scoring a decent job in todays market. i live in Michigan(the state with more problems than anywhere else in the whole united states) and i can tell you for fact that the best job you can hope for if you arent in college or have your degree already is a job in fastfood. the time it takes you to get your degree is directly related to the cost you will have to pay at the end(ie fail a class and you have to pay more to make it up). unless it takes you 7 years(which it probably will in your case)I can almost guarantee that with a positive mindset and a decent number of references for your professors(which you wont have if you try and skip college and jump right into a carer) that you will have a job capable of paying off your college loans in just under a year while paying for your cost of living and stashing some money in the bank to later put to good use(investing in stocks, bonds, or even a 401k). i hope you can come up with a more appropriate response to this than you did about the last poster on the ipad page to whom you just said "grow up!" after they destroyed your arguments at every turn.

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  5. @ Anonymous (June 9). Here' I am not talking about college education but graduate school after college.

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