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An (Educated) Fool And His Money

Tue Dec 13, 2011 4:10 PM EST
us-news, money, college, debt, student-loans, college-education, student-debt, grad-school
By Killfile
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I happened upon an article today which details how college is nothing more than a giant money making scam.  Most of the points it made amounted to "college is expensive," which, of course, it is, but the overall thrust of it was that college is a losing bet that only suckers take.

Which is, of course, bunk.


Yes, college is expensive and no, it doesn't guarantee you a job upon graduation but then again, nothing does.  Where is it written that every college student gets to graduate into home ownership, a white collar job, 2.5 kids and a dog named Spot?

 

College, like anything else you do with your life, is a decision that has risks and rewards.

College education isn't a money making scheme, but if you approach education with the expectation that ANY price is justified because you will INEVITABLY make it back after graduation then you - not the colleges - are the problem and it is both ignorant and infantile to blame the people who are only too glad to see a fool and his money parted.

If you're going to college you need to seek a professional degree.  

A professional degree represents the level of education you need to find work in the field of your choice.  The level differs depending on what you study.  In computer science, for example, it's a bachelors degree.  In political science it's a masters; very few people will pay you to have a bachelors degree in PoliSci.  French Literature or some of the more navel-gazing aspects of philosophy will probably require a PhD before someone will pay you to do what you love.

And you have to love it.  If you aren't brimming with energy going to class each day it is almost certain that education beyond the bachelors level is not for you.  Yes, that means that if you're a BA candidate in French Literature and you'd rather be bar-hopping it's time to get out or change majors before you rack up too much debt.  I know college is fun but it's not a $10,000 a semester vacation and, if you're treating it like that, you're not getting much value for your money.

Speaking of which, seek value for money in your education.  

For Masters and PhD candidates this is a no-brainer.  Will someone pay you to study?  No?  Then either keep looking or find something else to do with your life.  Paying for grad school is a sucker's bet and a great way to end up in debt up to your eyeballs with no hope of paying it off.  Again, if you do that it's no one's fault but your own; federal regulations make student loan debt very hard to discharge and it's senseless to blame lenders for giving you enough rope with which to hang yourself.

For bachelors degree seekers value for money is a little more difficult.  Look for state schools -- those are generally much less expensive -- and think long and hard before throwing down for a private education.  A year at a private school can come close to a four year stay at a larger public institution and the educational experience isn't all that different.  There are obviously exceptions: you'll never replicate Harvard's networking opportunities at Big State U, but with the exception of the Ivy leagues, there's little that private schools offer that public schools don't do equally well.

Except educate people who are stupid about money.

If you're throwing down private school tuition for your college experience and you're not attending an Ivy League school then you need to ask yourself what you're doing.  Unless you're getting an educational experience which is SEVERAL TIMES better than what you could get publicly (which I doubt) you're wasting your money, doubly so if you're paying private school tuition because you couldn't get into a public school; that's a sign that you need to rethink this whole college prospect.

College isn't a money making scam; it's an investment.  Some people make good investments and others make poor ones.  People who think that every investment always pays off, however, are the sort who are likely to decry the whole system as nothing more than a "money making scam."

In respect to them, I suppose it is.

Oh, and here's that article for those who care to read it: http://endoftheamericandream.com/archives/35-shocking-facts-that-prove-that-college-education-has-become-a-giant-money-making-scam

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Killfile

Sources: personal experience.

I got a BA in history which, as I learned, no one will pay you to have. That was in a somewhat different time, however, and my plan had been to educate myself as a computer programmer in my spare time and find work once I left college.

Which would have worked just fine if I'd been a year quicker about it... but then the .com bubble burst and I was competing with folks who had three years programming experience and a CS degree.

So I went back to school and got my own CS degree; I was lucky and I had a trust fund to pay for it. My decision to take a history degree, while something I don't regret, more or less cost me that trust fund when I went back to school, however, and that's money I could have saved if I'd made different decisions.

That doesn't make college a money making scam, however; it just means that some people make bad choices and, when they do, they sometimes lose money.

  • 7 votes
Reply#1 - Tue Dec 13, 2011 4:14 PM EST
LordFluffy

I would ad to your observations that a non-professional level degree in a discipline is not without some use, in any case. There are jobs that having a degree at all is qualification enough, though they will tend to pay less than those whose requirements are more specialized.

There is also the fact that education exists for other reasons than to get one a job. This is especially true of the Liberal arts where the benefit of the education is less about dollars and more about understanding of the subject, the world in which you live and potentially yourself. A BA in English might not get you six figures, but it will give you an insight into the language you use every day that will allow you to think more clearly and express yourself more completely; a set of skills that is useful in life regardless of one's profession.

If you can afford such personal enrichment is the question and as was said, there are other options than a 4 year high end school to attempt to achieve those goals.

I never finished a degree, but I do very much value the education that I did receive the two non-consecutive years I sought after one. It pains me when people start looking at the last real opportunity most people have to learn for the sake of learning and count it useless if you can't put a dollar value on the bottom line.

  • 7 votes
#1.1 - Tue Dec 13, 2011 4:27 PM EST
Reply
Barry Rutherford

I got a BA majoring in English Literature & Politics. I would not swap it for anything even though I have never used it directly to make a dollar

  • 5 votes
Reply#2 - Tue Dec 13, 2011 4:19 PM EST
Killfile

I wouldn't swap my history degree either... but then again I don't have debt hanging over my head as a result of it.

I see more and more stories about people who did four year degrees at tens-of-thousands per year on credit working jobs that can never pay that money back and that is a problem.

My history degree is a luxury. It's one that I love and probably the best possible luxury good for me to have, but it is, nonetheless, a luxury.

If we view non-job-related degrees as luxury items, no matter how fulfilling and gratifying they might be, then perhaps we'll have a better notion of the wisdom of spending on them.

  • 6 votes
#2.1 - Tue Dec 13, 2011 4:33 PM EST
LordFluffy

My history degree is a luxury

I'm really not sure it should be, though.

I get that one should prepare to be able to pay back any debt one takes on, but there's something wrong with how we charge for school now. I really don't have an answer for how to make it better, but it seems that there's a problem.

  • 3 votes
#2.2 - Tue Dec 13, 2011 4:35 PM EST
Killfile

To be clear, now we're crossing the boundary between what's a good idea and what makes good policy.

I agree categorically that we ought to make college education affordable and accessible for those with the apptitude to make use of it but the unfortunate reality is that doing so would necessitate a fairly deterministic system not unlike that used in Germany wherein pupils are identified as "college material" in their early teens and shunted towards academic or vocational education from thereon out.

Americans would find such a system repugnant as it clashes with the notion that "you can be whatever you resolve to be"* which is among the core notions upon which our nation is built.

* Amusingly, that line was uttered by Thomas "Stonewall" Jackson, the famed Confederate general who, though perhaps the best rearer-and-flanker who ever lived, was nonetheless a traitor to the country that seems to so love his profoundly Presbyterian protestations.

  • 8 votes
#2.3 - Tue Dec 13, 2011 10:15 PM EST
Reply
oldfogey

Very good article, Killfile. I would advise a college degree to almost all since that is the only way to get a high school level education today. After that I would suggest further investment only for the very intelligent and/or driven. I will always regret that I did not attend a college when I very easily could have. I was always busy making money and being satisfied at being a self made man. BTW, I took tons of college classes and passed more tons of exams which gave me credits. I just never put them all together. You don't have to be educated or intelligent to be successful in this world, just in demand.

  • 7 votes
Reply#3 - Tue Dec 13, 2011 4:39 PM EST
mstanley2265

In navigating the colleges and universities curriculum, it typically starts with a high school counselor unless your parents, an older sibling or relative has graduated from college. Then, a student has a built in support system for guidance. When a student is the First one to be able to go to college usually on a scholarship, Pell grant, loans and/or all three, a whole different scenario.

It becomes one of counting on the advice of high school counselors and college advisors. Too often one or the other don't exactly do a good job. My second semester, my university 'advisor' signed me up for a 3rd class in Advanced Chemistry. Totally useless, I had to change schedule and just got lucky enough to get in the Psych class, I was suppose to have been assigned. After that I learned my lesson. I found out who and where the 'good' professors where and classes that I needed or wanted. Some students don't do the research and/or they were misguided by high school counselors and wound up in remedial classes.

I am of the Major Opinion that all graduating Seniors take the Vocational Educational Test at their local Employment office to find out What they are most suited for and have knowledge in..... Before laying out all that money for a community, state or university degree.

  • 5 votes
Reply#4 - Tue Dec 13, 2011 4:43 PM EST
The Great Pumpkin-4738139Deleted
The Great Pumpkin-4738139Deleted
lambnlions

Being a rebel of sorts, thinking education is nothing more than, "the mans", way, of ultimate control, in this paradigm we live, mainly set up by corporate matrix's for their interest. Whats the point of education, if not to perpetuate the very ideals that has taken this nation to the brinks of its destruction's? Now, I'm not knocking all education, and as a system of things, as a whole we've gone to far to digress back to cavemen or horse and buggies, right? But I know that if the current things of how a person it so make and or live, isn't change; it's just a matter of time before doom knocks. Oh by the way, don't let my wording fool you, my cups half full. I'm just sticking a little interference of the natural order of things work. The notions of "it takes and Education", to make it, has been overly exaggerated, to colleges benefits. Hard work with a determination to succeed has always, "come thru", ... knowing what you were doing didn't hurt much either. I mean, I know people who know more about a subject than half those in a certain University, and didn't spend a day in any colleges.

  • 2 votes
Reply#7 - Tue Dec 13, 2011 5:57 PM EST
lambnlions

make a typo in

it so

of...

But I know that if the current things of how a person it so make and or live, isn't change

REALLY MEAN: But I know that if the current things of how a person IS TO make and or live . isn't changed....

  • 2 votes
#7.1 - Tue Dec 13, 2011 6:03 PM EST
Reply
Robert Blevins - AB of Seattle

After I got out of the Army, I used my GI Bill (and those great 70's Food Stamps) to obtain a modest degree in Speech and Communications. I studied hard, but I also spent much time spinning records at the college radio station. For credit, even. Our station manager hated me because I kept playing hard rock on my show, and it was an early-morning show. However, it was all good in the end, and I would do the same thing again. I ended up going into business for myself and I have no complaints.

And no debt, either. Nice article, Killfile.

  • 6 votes
Reply#8 - Tue Dec 13, 2011 11:34 PM EST
johnny angel

I was stationed in Japan in 1971, and got to see Led Zepellin perform in Hiroshima at Peace Park. When they arrived for sound check and exited the limo, they saw us GIs and flipped us the bird. We understood the sentiment and had a riotous good time.

I learned welding on the GI Bill in 1972. 1.5yrs school led to 5yrs of great employment. I wonder what $13.00/hr in 1975 would compare to today. I certainly felt I was living large. No complaints here either. What a ride!

  • 5 votes
#8.1 - Wed Dec 14, 2011 6:58 AM EST
luckydog

A great article for sure Killfile.

I especially agree with the comment that the only way to get a decent high school education today is to go to college. I think free public education should be extended to the community college level since a high school education is no longer enough. It is criminal that we don't prepare our kids for some job beyond flipping burgers.

  • 6 votes
#8.2 - Mon Dec 19, 2011 9:41 PM EST
bluejohnnyd

I like that quip about high school in college. I would think though that the obvious way to address it would be to figure out how to improve high school (as if it were that simple, right?), as opposed to effectively lengthening it by two years. Adopt methods from the UK, or Japan even, improve preschool quality, et cetera.

  • 3 votes
#8.3 - Fri Mar 2, 2012 2:20 AM EST
Killfile

I think, BlueJohnny, that we're running up against the problem of teenage shortsightedness. School is long and boring and hard and by the time you're in high school you have a pretty good idea if you want to be there or not.

If the answer is "not" then there's a good chance you're going to rebel against the system. You'll come to regret that in about 10 years, but in the short term you'll have some fun, do some drugs, skip some school, etc and you'll probably end up depriving someone else of their education in the process.

I wonder -- and I'm not sure about this -- but I wonder if we would be better served by relaxing truancy laws and putting money into adult education. A lot of these folks would have gladly punched out of high school at 16 or whatever and worked minimum wage jobs for a while before going back for a GED when they're in their 20s followed by a tradeschool before 30.

Might that give us better results over all? The kids who remain in school aren't beset by folks who don't want to be there. The ones who don't want to be there are able to make better use of their time and, when they do choose to come back for an education, we won't have teachers who have to deal with a hostile classroom.

I just wonder if one of the problems with our high-schools is that they have become a part-time prison for delinquent kids.

  • 3 votes
#8.4 - Fri Mar 2, 2012 9:22 AM EST
Chris-382117

Killfile,

This is a novelty; I actually completely agree with your article. Will wonders never cease?

I think, BlueJohnny, that we're running up against the problem of teenage shortsightedness.

I think that is partly the case of teen short sightedness, but also can be laid on the doorstep of a lack of discipline. I think that is the primary issue in all public schools today. When a teacher spends 50 % of their time keeping order in the classroom and "teaching down" to the least common denominator, I must wonder how they learn anything at all.

My story is that I received my Draft Notice in June 1967 and, rather than be drafted into the Army I enlisted in the Marines. I think that was the best thing for me personally (except for my time in Quang Tri Provence starting during the 68 Tet) because I learned the discipline that has helped me through my life (I'm 64 now). When I returned home and went to college, I found that I had one advantage over many of the young men and women I was in school with; the discipline to do what had to be done. When everyone was going out for a beer (you could drink at 18 then), I stayed in and studied. That, IMO, is partly why I graduated with two engineering degrees in 4 Years. I've been a professional engineer for over 35 years now. Discipline and decision making are two skills that every young person needs in order to succeed these days in college and in life beyond it.

But, likewise, I don't think every child should be pushed toward or forced into a university degree as the Academic Cartel would have you believe. I lived in Europe in the mid 80's working as a SME for and American company. I liked the concept that Germany used where children were tested and sorted twice in their middle and high school years. The first testing occurred at around the 7th grade and it sorts them into the Trade School, Technical School, or University Paths. They are tested again at around the 11th grade point to further refine the sorting and adjust those that were miss-sorted initially. This gets the children into where they are most likely to succeed rather than just dump them all into the University where 75% of them will fail. What are your thoughts on the matter?

  • 3 votes
#8.5 - Fri Mar 2, 2012 2:26 PM EST
Killfile

I think that is partly the case of teen short sightedness, but also can be laid on the doorstep of a lack of discipline. I think that is the primary issue in all public schools today. When a teacher spends 50 % of their time keeping order in the classroom and "teaching down" to the least common denominator, I must wonder how they learn anything at all.

Let me just lead with a single fact that very few people stop and think about: under the Bush Administrations' "No Child Left Behind" law, every high school in the country is expected to show a 100% graduation rate. Ponder that statistic for a moment.

See... here's the thing. Back in the day, so to speak, teachers didn't have to worry about pandering to the lowest common demonitaor, not because the kids were any different, but because we just didn't care, institutionally, if they just flunked out.

Today, the notion of flunking out of high school (or even earlier) is thought of as the educational end of the world.

But my wife's grandfather ran a general store for practically his whole life with a 4th grade education. My wife's other grandfather finished high school... and that was a big deal.

Now, I get what you're saying about discipline and yes, that does matter. Different kids find discipline at different times in their lives too; I was a different student at 21 than I was at 18.

But what if we accepted the fact that the age 5-18 timeline just doesn't work for some people? What if we destigmatized ongoing adult education?

Wouldn't that mean that teachers could teach to students who wanted to be there? Who were willing to do the work? Wouldn't it also produce better students overall?

One of the great things about college is that, for the first time, a teacher can honestly ask a student "have you considered the possibility that you just can't do this stuff?"

I also like the German system and, while I'm both a child of and married into the Academic Cartel, as you put it, the reason we push kids towards college is that vocational education in this country is a trainwreck. More's the pity. I think we could make some serious strides in education by looking at the success of the German system.

  • 3 votes
#8.6 - Fri Mar 2, 2012 3:37 PM EST
bluejohnnyd

Sort of a tangent on the 5-18 timeline, but I wonder if we also shouldn't be looking at the earliest parts of that range. There's a lot of pretty compelling data to suggest that the most effective investments by society, in terms of cut-and-dry returns on investment, happens at age 3, with preschool (see story here - and while you're at it, the podcast is pretty good too). The basic conclusion that researchers seem to be drawing is that exposure at very young ages to basic social ideas like sharing and compromise make for much more well-adapted adults.

Maybe we should adjust to a 3-16 timeline, or 3-17? I seem to remember friends I have in the UK ending high school effectively at 17 instead of 18.

  • 3 votes
#8.7 - Fri Mar 2, 2012 4:03 PM EST
Chris-382117

killfile,

I'll disagree wit you a little on some of this.

Let me just lead with a single fact that very few people stop and think about: under the Bush Administrations' "No Child Left Behind" law, every high school in the country is expected to show a 100% graduation rate. Ponder that statistic for a moment.

First, you will never get a 100% graduation rate no matter what you do unless you just pass everybody no matter what they do or don't do. Isn't that part of the problem? We have just continued to pass the functionally illiterate only because it was too damned hard to fail them. It's like trying to fire a career government employee. You can do it, but it will drive you to distraction. The easy way is just to let the deadbeat "retire in place" except for what it does to the moral of those around him.

That brings me to the next issue, I do not advocate flunking them out, but rather adjusting the system to bring those up that are sub standard in their earlier education while not holding back those that are capable of being challenged. there is nothing worse than a bored student and boredom generally comes from one of two issue; either the student does not understand the per-requisites and has given up or they understand the material the first time and are bored to tears waiting for something to challenge the. in either case, you have a potentially disruptive student that interferes with the learning experience of everyone else. This goes back to my remark about spending 50% of their time keeping order. A Bored student is a disruptive student.

My Great Grandfather had a 2nd grade education but managed to teach himself algebra and Trigonometry so that he could navigate the seas. He was a sailing ship captain when ships still had sails. I don't advocate that we go back to that. But I will disagree a little with you regarding the Discipline. I sent my children to a church school when we returned to the US; not for the religion but for the discipline. (My kids are now in their mid 30's and I have 4 Grand children.)

When my kids started in school, we were living in France. The French schools, like the German ones, are highly disciplined. upon our return, the public schools were already experiencing what I call the "Blight of Political Correctness" and the "Fear of the parent's Attorney." In my day, if I did something wrong in school, the teacher would simply send a note home with me or call my parents and there would be hell to be paid when I came home.

By the time my kids were in the public schools, I could not get a straight answer out of the teacher. I would ask if they were doing what they were supposed to or if they were acting up and the teacher wild spout doubletalk. I found out later from a friend who was a teacher that they were instructed to say nothing bad about the children fro fear of a law suit against the school system. WTF! I want to know if my kids are being a problem; I'LL take care of that issue. The first time I found out about it, it would NOT happen again. That is why we put them in private Catholic schools. I wanted to know what they were doing and what was expected. if they got out of line, I wanted to help nudge them back in bound. We were committed to our children and my late wife and I worked very hard to raise them the right way.

But what if we accepted the fact that the age 5-18 timeline just doesn't work for some people? What if we destigmatized ongoing adult education?

I am all for destigmatizing adult education, but I have to ask you if you have children yourself? The first thing I learned as a parent is that if you TELL a child to do something they will just not want to do it. I let my kids know very early on that our home was not a democracy, but a benevolent dictatorship and I was the Dictator and my late wife the equal and Co-dictator. Our word was law and that was that. If you don't like the arrangement, the door is over there. They learned right from wrong, good from bad, honesty, honor courage and commitment, but most of all, they learned from the start who bosses were.

Different kids find discipline at different times in their lives too; I was a different student at 21 than I was at 18.

We will probably disagree here, but I think that discipline is one of the cornerstones of success. Without it, you may succeed, but there is a greater chance you will fail. For that reason I believe every child in this country needs to attend some discipline demanding system between high school and college only because we teach co little of it now between 1 and 18. Peace Corps, Military, or Coast Guard to instill in them teamwork, following of the rules, and being a part of something bigger than themselves. Teaching them that some things are more important than self and that others depend on you; these are all important things to learn if you want to succeed.

I also like the German system and, while I'm both a child of and married into the Academic Cartel, as you put it, the reason we push kids towards college is that vocational education in this country is a trainwreck. More's the pity. I think we could make some serious strides in education by looking at the success of the German system.

But it doesn't have to be. I am a principle engineer with a major company. I cannot hire enough engineers and technicians and am forced to rely on H1B Visa Candidates. This isn't because we aren't paying very competitive waged, but I just can't find them. But, I'm up to my ass in Lawyers, financiers, and Poli Sci or philosophy majors that come to me with the idea that i owe them a job. That is why I call it the Academic cartel.

  • 3 votes
#8.8 - Fri Mar 2, 2012 4:45 PM EST
Killfile

I am all for destigmatizing adult education, but I have to ask you if you have children yourself?

I do, but they aren't terribly good at following orders. That may be because they're 13 months old though. They're pretty good at responding properly to "No" however, so that's a start.

  • 2 votes
#8.9 - Fri Mar 2, 2012 5:04 PM EST
Chris-382117

That may be because they're 13 months old though. They're pretty good at responding properly to "No" however, so that's a start.

Then you are in for quite a bit of joy and frustration; been there, done that. My only advice to you is to set the rules early. You will be surprised what they understand at 13 months. Both of you must speak with one voice because they will learn how to divide and conquer at very quickly. If you set the boundaries now, you won't have to worry about the problems later that are caused by the lack of them. But most of all, instill the values in them that you want in them NOW (mine were honesty, discipline, honor, courage, and commitment). At this age they are sponges and will suck it up. If you wait until they are 6, you've already lost the battle.

  • 3 votes
#8.10 - Fri Mar 2, 2012 9:29 PM EST
Reply
Marquis de Laffayette

I agree with the idea behind this article entirely, but I have my complaints about the way high school advisers prepare students for college (using my experience to make a generalized assumption about the experiences of other high school students).

When I was being advised, they hardly ever mentioned my major. It seemed like my friends felt the same way. Instead they emphasized choosing the right campus, visiting campuses, applying to colleges, and actually going to college. That part was what really bothers me now, looking back on it. To get students to think going to college is a good idea, they show a graph showing the average lifetime income of those with a bachelor's degree as well as those who only finished high school. It was as though what you majored in had no impact whatsoever on the amount that you were going to make.

Basically this is the kind of attitude that I hate.

I still think college students have plenty of time to figure things out when they get to their school. But if you started off with the wrong major, then you may have already lost an entire semester's worth of work, pay, and tuition money.

I'm not bitter, by the way (I'm currently majoring in CS myself - something I planned to do from the beginning). But people have certainly been lead on. Unfortunately there are those who think that college will pay off no matter what, and don't look into it as much as they should. And I thank those who advise students on an overly generalized graph like the one I posted for that.

  • 2 votes
Reply#9 - Mon Jan 30, 2012 11:08 PM EST
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