Getting a college degree is an expensive affair and often college graduates have been found regretting their decision after undertaking huge debts to pay for higher education. The problem surfaces more frequently during recessive years when salaries are low and jobs are hard to come by leaving debt ridden college graduates struggling to make loan repayments.
It is recommend that the student plans the future carefully before deciding whether the college education is really worth the money he or she will spend. The student should answer important questions before jumping the guns. What is the course opted for, how much more can the student earn if he or she completes the degree and what are the future prospects for the opted field of study – these are some of the questions that can help determine the value of a college education.
The earning potential after the college education should such that it can easily payback the cost of the education, especially in cases where the course is expensive and will result in huge debts for the student.
Studies show that college graduates definitely claim higher average pay scales than their high school colleagues – up to 60% higher, both in terms of yearly income and overall career payout. In fact, college graduates have steadily been earning more and more in comparison to their high school counterparts over the years. A college degree also gives students a definite edge in the highly competitive employment market.
With all these positives, it is also true that many college graduates find it impossible to pay off the education loan even after they land jobs. More so during recessive years when starting salaries are low. According to a National Bureau of Economic Research report college graduates bear a 9% drop in initial annual income during recession and it may take up to 10 years to bring their salaries on par with industry.
Increasing college costs make the decision to go for college education a tough one. To rationally decide whether you should go for college education or not, consider if it will bring more lucrative job opportunities, raise quality of life, give job satisfaction, or get you the right contacts and friends for further growth. If it does, then your decision is likely to hold well in future.
Less expensive local colleges are gaining favor among students wanting to get higher education. Although many students may regret their expensive college education, it remains a fact that college goers are still twice as likely to get jobs than high school candidates.