These days one has to ask themselves if the cost of getting a quality college education is worth it. A degree from a major university can end up costing more than 2 good homes, especially if the student decides to go for an advanced degree. One has to ask if it’s worth it and, if so, how they’ll be able to pay for it.
Unfortunately, college debt is one of two debts that you can’t erase if you declare bankruptcy; the other is tax debt. And college debt, though it can’t get you throw in jail or fined, will most often be higher and harder to deal with. This is because lenders don’t always work with you on how much you have to pay monthly, though most will work with you as to when you have to start paying on it.
At some point one has to figure out what’s worth it and what’s not worth it when going to college. For instance, is a bachelor’s degree from Harvard really worth more than one from a 4-year state school? In general no; if you went to college for theater who’s going to care? If you went to school for accounting, probably not. If you went for political science, with an intention on being a politician someday, sure. And if you’re looking to go for an advanced degree in law, absolutely.
And then there are the advanced degrees one has to think about. Is a master’s degree from Yale really all that much different than a master’s degree from UCLA? Aren’t both big name schools? And won’t the degree from UCLA not only cost thousands less, but you’ll also be in better weather?
In any case, if you’re still looking to go to a big name college, you need to have a plan for attacking the debt once you’re out of college and ready to go into the workplace. You also need to figure out early on your potential income ratio matched against how much it costs to go to school. In today’s economy, if you’re getting a master’s in education and you want to be an elementary school teacher, you’re probably not going to come close to earning enough to bail you out of your loan. If you’re going for a doctorate and hoping to land at a major university yourself, there’s a possibility, but nothing’s guaranteed.
The same goes for the medical field. If you’re looking to be a specialist such as a heart surgeon then you’ll easily be able to pay back your loan in good time. But if you’re hoping to be a general practitioner you’ll probably have to work 12 to 14 hours a day to have any chance of keeping up on your payments; so much for luxury living.
Parents and students need to be realistic in protecting the student from crushing debt after graduation. There are many good colleges that one can get a very credible 4-year degree from. Many of those same schools offer competitive pricing for masters degrees as well. It’s something to think about for your future.