Are Too Many of Us Going to College?

It’s a simple fact that the “business” of higher education has led to a big problem across the country. There are too many people who are going to college in the first place, but also, far too many who are carrying enormous student and other loan debt as a result of their sometimes-impractical degrees. Is it parents and high school guidance counselors who have instigated this trend over the past 20 years? Or, does the “college expectation” go further and deeper than that? How do we stop it, and—more importantly—should it be stopped?

First, let me say that I am not against formal learning, or degrees, or the “college experience,” which can be helpful in bridging the life of a high school student to that of an independent adult.  I have my bachelor’s degree, and my wife has a master’s degree. Thus, writing this column may appear hypocritical. That said, the facts speak for themselves, as you will see below:

• College tuition, board, and other fees have risen far above what is affordable for the majority of American families. Why has it risen so far above the rate of inflation? Simple supply and demand would be my first guess. The problem with college tuition is a self-fulfilling prophecy; the more applicants to a school, the higher the tuition and fees will creep. But those higher price tags do not seem to deter people as much as one would think. People assume they will just pay it off “later.”

• According to ollegedata.com, the average public college cost is $21,447 per year.  That is $85,788 for a four-year degree. Assuming that a student’s parents pay for 50% of that amount, or that the student receives various grants or scholarships for 50%, this still leaves a student with a loan debt of nearly $43,000 upon graduation! If you cannot find a relevant job (which can be very difficult in today’s stagnant economy), then you are in trouble. Typically loan repayments are due to be started immediately upon graduation.

• If you are looking for a “private school experience”, the numbers are even more staggering. Average private college costs are $42,224 per year. (On a related note, this amount is approximately the median annual salary nationwide. How many working families can attempt to afford to send their children to a private school?) If we assume the same criteria as in the public college scenario above, this would leave the 22-23 year old college graduate with approximately $84,400 in student loan debt after four years.

• What kind of income is required to justify more than $84K in student loan debt? For example, the average licensed social worker (LICSW) makes about $53,000 annually. If this person can sock away 10% of their earnings towards loan repayment (not easy to do), that would equal $5,300 towards this student loan debt per year. With ZERO % interest, it would still take this former student 16 years to repay their student loan debt! Clearly in this scenario, it does not make financial sense to go to a private school IF your career is not a high-paying one OR if your folks are not able to pay for most or all of your schooling. A public college or university would make much more sense; this would be the case probably for 70% of the high school students considering getting a degree.

But a larger problem, I believe, is that there has developed a “consensus” that one “needs” a college degree to amount to anything worthwhile in this country. All it takes is a little research, along with a few personal anecdotes, to know that this is far from true.

Do you need a bachelor or master’s degree to make a lot of money and be successful, support your family and underwrite good charitable causes? No. Naturally there are some fields where some form of advanced degree is a prerequisite. Doctors, lawyers and engineers are typically at the top of the pay scale, and all require at least four years of schooling. Most require much more schooling (and loan debt) than that.

However, there are many other fields and manners to make significant income. Small business owners (of all types) are usually amongst the highest earners in any region. No college education is required to own something, at least not necessarily. Bill Gates is of course an example in this regard. He dropped out of college after not more than two years.

Salespeople also have one of the higher paying jobs. Usually no college degree is required. A great salesperson can make $100,000- $200,000 per year. Even so, this is a field that is not meant for everyone.

Lastly, there are the skilled trades. Preferably a trade where some license is required. I have worked within the construction field for many years, and I know many electricians and site excavators who have beautiful vacation houses on the lake and make more money than most lawyers in the City. How do you learn these skills? Normally you learn from doing, and sometimes this involves a formal apprenticeship program. To get started, some high school graduates will attend a 6-12 month technical schools that prepares them for related field certifications or licenses. One such example is an oil burner technician. School for them will cost about $5,700 for 1 year, and after that, their median salary will be about $41,000. Realizing that this salary is not the highest, of course the longer he (or she) sticks with it, or manages others, the more their income will increase.

As a society we need to be practical, and also to value persons, including our children and our neighbors, who do not attend college. There are plenty of successful, and smart, individuals today who do not have a college education. That is a fact, though maybe the college boards do not want to advertise it.

There is nothing wrong with having a college education or an advanced degree. And, there is nothing wrong with not having one either. A college degree alone does not make one holy or wise. And these days it can break the bank on top of it. God calls each of us individually to serve him in unique ways for the greater good and for his greater glory. In spite of much pressure to do so, the truth is that attending college—or not—is not the criteria against which anyone should be evaluated.