Introduction
Is College Education really worth it? It’s a loaded question that doesn’t have a straightforward answer. Afterall, isn’t it pounded into our heads from an early age that earning a college/university degree is the first step towards acquiring a high paying job? And if we don’t get one, we are told, we will eke out the rest of our existence flipping burgers at a local food chain? But with mounting student loans and rising tuition costs, it’s a valid question to ask.
But isn’t a degree a prerequisite for any rewarding career? Not really, having a degree doesn’t necessarily set us up for automatic success. Besides, there are a lot of things with the way the current school system is set up that just doesn’t sit well with us. First and foremost, Colleges are becoming increasingly expensive. According to US News, in the ten years between 2009 and 2019, the average college student loan increased by 26%. This epidemic is showing no signs of subsiding either. In fact, it’s estimated that by 2020, the US student loan debt is poised to reach 1.75 Trillion dollars!
Where’s all that money coming from?
The Sallie Mae institute which is doling out these funds, is backed by the government and at the time of this writing when we are plagued by a pandemic world over and the interest rates have been slashed to historic lows in order to prop the economy, is still charging a whooping (starting at) 4.25% APR. You can currently get a mortgage loan at a far better rate than this. But then again, buying a home is something that is slowly getting further and further out of reach of students graduating out of college today.
The student loan is a unique trap that students who are just coming out of college and looking to start their lives, can never get out of until it is paid off. The government policies have ensured that even if you declare bankruptcy, you cannot wipe off your student loans as easily as you could for other types of credit.
Who does the college benefit?
The question to ask is whether we are really getting our money’s worth out of college education? Is it really benefiting us or others? In recent years, colleges have essentially become a lucrative business focused on creating fortunes for few rather than building futures of the young generation.
But one can hardly blame them. Once again the government policies are such that there is a huge incentive in running universities like a business to turn huge profits. First and foremost, as per the IRS, the majority of universities and colleges are tax exempt entities. Which means, any income generated by these entities via tuition fees, charitable activities, student activities such as galas, games and other such frivolities is all exempted from taxes.
Not only that, private Ivy League schools have to pay no property taxes on the land (usually prime locations) that their buildings are situated on as well as no taxes on any sponsorships, donations or endowments that they receive. They also don’t need to pay any capital gains on the returns that they might have on their invested funds. On top of all that, some of these universities are subsidized by the government i.e. paid out of taxpayers money.
According to Wikipedia, Harvard’s endowment alone is worth nearly 41 billion dollars and though the biggest, is not the only endowment fund owned by an institute of higher education in the United States. The fund is actively managed by professional financial experts in order to grow the pot year after year. That sounds alot like a business enterprise than an educational institute. If Harvard wanted to, they could pay the average tuition from that fund alone, for thousands of students and sustain that for over a hundred years.
What about all the jobs out there for degree holders?
What’s fascinating is that having a College education/degree does not translate into professional success either. According to a study conducted by the Federal Reserve Bank of New York, only 27% of the college grads actually end up in jobs that are related to their major. More alarmingly, the study also found that nearly 62% of the graduates were underemployed i.e. had jobs that did not require a college degree at all.
So what are we getting at?
By now you might be thinking that somewhere in this post we will recommend looking into free resources for acquiring free education. After all, one can learn an infinite number of skills just by having an internet connection and access to YouTube tutorials. And while it’s true that in today’s day and age, we are fortunate to have access to a vast amount of information, some of the highest paying jobs out there do require a college degree and a lot of those professions cannot be mastered by watching online videos.
One cannot become a dentist, a surgeon or a pilot by signing up for Khan Academy. But there are definitely resources out there that are readily available either for free or for a fraction of a cost of college that will provide you with viable tools and equip you with skills needed to land a job and start a meaningful career.
So in essence, what did we learn so far:
- College is becoming increasingly expensive and student debt is rising steadily.
- Colleges are sheltered by government policies and are turning into businesses.
- A college degree does not guarantee a rewarding career.
In conclusion
What we are advocating for is to discuss the ‘College Trap’ and have conversations about fixing our broken education system. A system that’s turned into a profiteering machine rather than into an institute for building the future of our children. We want you to get into the habit of critical thinking, looking at the bigger picture and questioning social norms. Our government representatives must be implored to make educational reform a priority in their political agendas. We must not sell the future of our children in a bid to make money. After all, there is no better investment than investing in the minds today that will shape our tomorrow.