For yet another year, the cost of college tuition has risen more than the cost of inflation. That means tuition cost rose faster than peoples ability to pay for college.
There is no way a bachelors degree can be worth the cost these days. If you consider that recently tuition, fees, books, and room & board are going to cost students these days about $25,000 per year. And with most colleges fixing it so students end up having to go 5 years before they get all of their credits to graduate. That’s a grand total of $125,000 for an education. That’s more than the mortgage loan I took out for my house!
Now granted, the interest rate for college loans is better than a mortgage, but not that much better. Since there is no down payment for a student loan, that means you are financing the entire cost. When you first get a job right out of college, you don’t get that great of salary because you don’t have any experience. So the most you can spare above living expenses is maybe $100 per week. At a fixed 5% rate (because the 2% that banks offer has impossible stipulations attached to it), it would take another 45 years to pay the bank back. By comparison my wife, who graduated in like 1994, only needed like $50/month for 20 years. So if I am figuring this out right, if students today graduate at say 25 years old, then they are stuck making a “second mortgage” payment each month until they’re 70 years old!
Yea, yea, I know that an education is a good thing to have, but I just don’t think it’s worth being under the thumb of the bank for 45 years and $246,000 just for a 4 year degree. If I had a bachelors degree, I could make maybe $10,000 per year more than I do now which is $7500 after taxes. So in the same 45 year span of time, I can make $337,500 more than I do with no degree. Subtracting the $246,000 that I owe the bank from this extra income, I would end up with a grand total of $91,500 more in my pocket over those 45 years. That only works out to $169 per week. I could use an extra $169/week, but not If I gotta pay $100/week to a bank to get that extra salary.
I think it’s time to stop pushing your kids to be doctors or lawyers and start pushing them to learn skilled trades like plumbers or mechanics.
There is no way a bachelors degree can be worth the cost these days. If you consider that recently tuition, fees, books, and room & board are going to cost students these days about $25,000 per year. And with most colleges fixing it so students end up having to go 5 years before they get all of their credits to graduate. That’s a grand total of $125,000 for an education. That’s more than the mortgage loan I took out for my house!
Now granted, the interest rate for college loans is better than a mortgage, but not that much better. Since there is no down payment for a student loan, that means you are financing the entire cost. When you first get a job right out of college, you don’t get that great of salary because you don’t have any experience. So the most you can spare above living expenses is maybe $100 per week. At a fixed 5% rate (because the 2% that banks offer has impossible stipulations attached to it), it would take another 45 years to pay the bank back. By comparison my wife, who graduated in like 1994, only needed like $50/month for 20 years. So if I am figuring this out right, if students today graduate at say 25 years old, then they are stuck making a “second mortgage” payment each month until they’re 70 years old!
Yea, yea, I know that an education is a good thing to have, but I just don’t think it’s worth being under the thumb of the bank for 45 years and $246,000 just for a 4 year degree. If I had a bachelors degree, I could make maybe $10,000 per year more than I do now which is $7500 after taxes. So in the same 45 year span of time, I can make $337,500 more than I do with no degree. Subtracting the $246,000 that I owe the bank from this extra income, I would end up with a grand total of $91,500 more in my pocket over those 45 years. That only works out to $169 per week. I could use an extra $169/week, but not If I gotta pay $100/week to a bank to get that extra salary.
I think it’s time to stop pushing your kids to be doctors or lawyers and start pushing them to learn skilled trades like plumbers or mechanics.
2 comments:
Preach on brotha'. You know i'm w/cha!
D
College is a vast criminal enterprise designed to destroy a young person's chance for a financially secure future. Years of my life and thousands of my dollars have been wasted on an education that was little better than what I could have received in high school.
Think long and hard before you sell your soul to these thieves. You will never get your time and money back. The degree is nothing but a sheepskin, it makes life easier for employers but no one else.
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