We have been sold a lie.
College was supposed to be the way to a good career and high pay. But in recent years both graduates and employers are seeing the cracks in the college facade. They are losing confidence in the value that college can bring.
The income enhancement with a college degree has nothing to do with actual knowledge or skills. It only applies to the degree, a simple piece of paper.
Michael Gibson illustrates this point in his book Paper Belt on Fire.
Imagine two hypothetical college students studying the same degree from the same university. One has graduated, while the other is one credit short on his degree. Now imagine that missing credit is the course Demystifying the Hipster, a real class taught at Tufts University.
These two students likely have very similar knowledge and skills. So if a college degree were about knowledge and skills, these two students should earn a similar income. But the reality is that the college graduate earns on average 29.8% more than the one who was one credit shy of a degree.
That Demystifying the Hipster class must teach some valuable skills.
In addition to the lackluster knowledge and skills provided by a degree is the skyrocketing expense created by government guaranteed loans.
College tuition has outpaced inflation over the past 50 years. Guaranteed loans create an incentive for colleges to grab as much government cash as possible. Students with these loans are unable to declare bankruptcy even when in financial hardship. These two factors are the major forces in the obscene rise in college tuition.
This puts students in terrible financial situations, leaving many unable to capitalize on their higher income. The average student borrower has over $38,000 in debt. One in ten borrowers have over $80,000 in debt. And there are many sad stories like this student who have over $300,000 in debt. How do you get ahead in life with something like that?
What should be done?
Many students want college to prepare them for their careers. Unfortunately, college mission statements do not align with this desire. A cursory glance at various mission statements revealed that colleges are not aligned with this expectation. They say things like “advance new ideas”, “development of human beings and society”, “advance knowledge”, “discover, preserve, and disseminate knowledge”, “be a premier land and space grant institution”, and “promote diversity and equal opportunity”.
Here are a few options that are cheaper and will better equip young people for a career.
Gap Year
A gap year is a break from formal schooling and it can be used to explore personal interests and possible career paths without the costly price tag associated with college degrees. It allows individuals to gain practical experiences in both their professional and personal lives which better enables them to make thoughtful decisions about their future endeavors.
There are even structured groups designed to help students through this exploration, but students can also do this informally by taking extended trips on their own, volunteering for causes they support, or simply researching ways to capitalize on their talents.
Online Learning
During a student’s gap year, online learning can be a valuable tool. And, most importantly, it can be done at a much more affordable rate than if one went to college. Skillshare and Masterclass provide monthly subscriptions for less than $40 a month. Programs like this are perfect for students who are still figuring out what their interests are or want to dive deep into a specific topic.
In addition, YouTube is a great free resource. Many college courses have been recorded and placed online. Anyone interested in a topic, including young adults, can find lectures in passion areas and begin learning right now.
Trade School or Applied Technology Centers (ATC)
Many look down on trade schools. This is likely due to the blue collar nature of the careers they serve. And while yes, many trade schools provide certifications for welding, plumbing, cosmetology, etc., many have expanded to offer tech certificates as well.
Some traditional colleges offer short 24-week “boot camps” providing a tech certificate without requiring a degree.
Entrepreneurship
Students may already know what they want to do with their lives after high school without needing to go to college. And if that is the case, there are a variety of paths they can take to learn useful skills. For example, parents can help them start their own business. Young adults can take one of the many teen entrepreneur courses. Although, finding a mentor in your neighborhood may be an even better option.
One young man in my neighborhood knew that college was not for him. The idea of sitting in class for another four years after high school did not appeal to him. But he knew that he loved being outside and working with his hands, so instead he started his own excavation business. He currently has contracts and his business is starting to grow.
If you do go to college…
You may decide that college is what you need. But there are ways to do it quickly and cheaply. Groups like College Hacked routinely help students get a bachelor’s degree in 12 months for a price of $6,000 to $7,000.
Students should explore their options more before committing to four years and many thousands of dollars worth of debt. They may find a passion for the trades, or an amazing business idea that can sustain their family.
And as Jay Dang, a young entrepreneur, said “You can always go back to college if you fail.”
