Millennial Money Man

Helping Millennials Make More Money, Save More, and Pay Off Debt

October 1, 2018

Is a College Degree Worth It?

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Is a College Degree Worth It?

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There are a lot conversations back and forth these days about the whole “is college worth it?” argument. I see them all the time in my M$M Facebook group, but they’re everywhere, and if you’re a millennial, you’re probably talking about it too. Of all the topics that have been covered on this site so far, this question about a college degree and the student loans that are inevitably attached to it feels almost impossible to answer.

From what I’m seeing in my own community, my gut feeling is that the majority of you feel totally let down by your degree. You probably spent most of high school looking at and planning for college, then get to college, graduate, and are just thrown out there. Jobs are hard to find, some don’t even use or need your degree, and one more little thing… ALL OF THOSE STUDENT LOANS.

I’m actually coming across a lot people who are very vocal about trade jobs being a better route, bachelor's degrees being worthless, etc. For some, that is a valid argument.

The other thing we’re up against is this overwhelming misconception about what millennials actually did in college. It’s like everyone thinks that we’re idiots who went out and got underwater basket weaving degrees. There is definitely a handful of people that did some obscure program, but that’s not the majority of us.

So are college graduates actually idiots? Is college worth it? Let's explore the answers and look at some studies I found.

The rising cost of college

Before I unpack this article too much, let’s take a moment to collectively scream about how expensive college is. Ready?

1… 2… 3…

AHHHHHHHHHHHHHHHHHHHHHHH!!!!!

Feel better?

Yeah, the cost still does suck, but another thing that sucks is that the people who are telling us that we had to go to college in the first place (older folks like our parents or teachers) paid only a fraction of what we are paying for our education. This isn’t one of those “a dollar then is worth less than a dollar today” things, it’s the harsh reality that tuition has gone up 161% in the past 30 years, and that’s adjusted for inflation.

Want to see what you would have paid for your education 30 years ago, MarketWatch has an interesting, yet depressing, tool that lets you enter the name of a college to see the difference in the past 30 years. There’s also an exciting graph showing how salaries have stayed pretty stagnant while tuition costs keep skyrocketing. Groan.

But, college degrees are actually still a good investment

Despite what I just shared, I found that while doing research for this article, I was really surprised by what I saw over and over again. There are multiple sources showing that college degrees are still extremely valuable, despite the rising cost of college.

I was honestly expecting to see a massive amount of new studies showing that there was a sharp decrease in value or a very thin margin between the earnings of those with a degree and those without. I mean, I keep hearing people say it over and over again that college degrees aren’t worth the cost, surely studies were backing up their claims.

Then, I remembered one of the age-old rules of the internet:

People who have a negative opinion of something tend to speak up more than those who don't.

The honest reality is that most people are probably still pretty happy with their decision to get a college education, even if that means taking out student loans to get it done.

Last year, Entrepreneur wrote about the difference between those loud, frustrated voices and the reality of a college education. They wrote that, “No other platform is quite as equipped as collegiate programs when it comes to providing a wealth of valuable experiences in one package.” The bottom line in their article is that the skills you learn in college will help prepare you for the workforce, which is getting even more competitive.

There’s also the fact that your degree is likely qualifying you for things outside of your degree field.

Take an English Lit degree, if you know anyone with that degree, they’ll probably tell you that they aren’t getting paid to read books and write thesis statements. But, the skills they learn in college make them excellent candidates for jobs in content marketing, advertising, sales, public relations, etc.

I don’t want to invalidate the frustrations of many millennials who are out there right now feeling pretty bummed about their lower salaries and student loan payments. Totally understandable. It sucks. Part of the problem is the higher education system, not necessarily the act of getting a degree itself.

Several times on this site, I've really gone after the messed up conveyor belt towards debt that is our public education system. Watching kids go to school-sponsored college acceptance parties crushed me when I was teaching because I knew what type of student loans they were about to innocently walk in to.

Even after looking at some of the numbers in favor of higher education and college degrees, I won't change my opinion that public education has to do a better job of pushing trades and entrepreneurship.

They also have to teach kids more about student loans. They just have to.

Speaking of student loans, what about grad school?

It is undeniable that student loans suck. I hear this constantly, and it’s why I worked so hard to pay off $40,000 in 18 months. However, this section isn’t about getting rid of your student loans, you can find more about paying off your student loans here, it’s about making the decision to go back to school, possibly adding to them.

I’ve shared with you before why you shouldn’t go back to grad school, but let’s talk for a second about why it might not be the worst thing you’ve ever done. This is not a recommendation for grad school, it’s just looking at all of the possibilities.

Grad school doesn’t necessarily have to add debt. There are some fields of study, like those in the humanities, that offer fully funded programs, complete with a stipend. These are mostly PhD programs though.

Other reasons you might want to go back is if your company will pay for an advanced degree. And for some, there is the possibility that the cost of incurring more student loan debt might be worth it in the long run. Yes, I just said that.

That’s not for everyone in every field (teaching is actually an example of why you might go back for a graduate degree), and you will be considerably better off if you didn’t take on as much student loan debt for your undergrad to begin with.

Investopedia recently wrote a fairly in-depth piece titled “When Is Grad School Worth It?” that looks at this specific situation. They explain the types of questions and considerations you need to be aware of before going back, which are:

  • Does grad school fit with your career goals?
  • How much can you expect to earn after graduating?
  • Will your skills be in demand?
  • How you can analyze the financial impact.

Their bottom line is that a graduate degree can be beneficial to some for job growth and increased earnings. However, it shouldn’t be looked at as something to do if you’re bored in your current job because of the time and money you have to invest in just the process of going back, and this doesn’t include the cost of adding to your loan debt.

My bottom line… if you are at all thinking about going back and incurring more debt, YOU HAVE TO CRUNCH THE NUMBERS. Seriously, think about it harder than anything you’ve ever thought about before because the only thing worse than student loans is adding more of them.

The Rising Cost of Not Going to College

One of the most interesting studies I came across was “The Rising Cost of Not Going to College,” done by the Pew Research Center in 2014.

It covers a wide range of topics, but here's the short version:

  • Millennial college graduates earn $17,500 more than their peers with high school diplomas.
  • Almost 9 in 10 millennials questioned in the survey felt that their degree was worth the investment.
  • 22% of millennials with only a high school diploma are living in poverty, vs. 6% for those with a college degree.
  • 53% of millennials with degrees say they are happy with their jobs, vs. 37% of young people with only a high school diploma.
  • 91% say that their degree has paid off for them already, or feel confident that it will in the future.

If you're kinda nerdy about student loan stats like I am, check out the Pew Research Study.

Read also: 27 Heartbreaking Facts about the Student Loan Crisis

So what does this particular study mean?

Ultimately, as much as the cost of tuition and student loans suck… they can still be very valuable, and the people who are getting them do still think that it was a great decision for their future.

Personally, I feel the same way too. Even as a teacher, I felt like I got a ton of value out of my degree and that my student loans were a good investment.

The other thing that most people don't really bring up in the whole student loan debate is this: there is nothing wrong with being highly educated. I can’t tell you how much valuable stuff I learned in college that didn’t actually pertain to my degree. These aren’t marketable skills, rather intangible stuff like knowledge and experiences that I actually think have made me a better person than I was before.

I don't technically use my college degree anymore, but I guarantee that a lot of the things that make me and this site successful are principles that I learned by going through years of college to obtain a degree.

Read also: You Are Not Your Degree: How I Found a New Identity After College

That's definitely not to say that you need a college degree to be successful or a good person, but I do think that the standards college sets combined with the attached financial pressure isn’t necessarily a bad thing.

Even though the costs are ridiculous, one thing that colleges do very well is push people to better themselves.

We all know that guy who just used college as an excuse to party, but ultimately I would imagine that the majority of people with degrees went to college and took it very seriously.

About those underwater basket weaving degrees…

We all hear the arguments and negative talk about gender studies and liberal arts majors, but in reality, most people that go to college aren't getting those degrees. Recent college graduates are leaving with things like degrees in business, and the number of those getting natural science degrees has risen rapidly.

Take a look at what has happened across the college degree landscape in the past few years:

Graph of college degree choices from a 2016 study based on percentage of majors chosen

Here's another chart showing exactly what is happening within humanities (hint: these degrees are declining):

Graph of college degree choices from a 2016 study

Hopefully, this means that colleges are purposely limiting the number of students they accept into those programs because of the likelihood of post-college employment, another possibility is that college students might be realizing that these degrees aren’t worth the cost of the loans needed to attain them.

Either way, one of the most important things that needs to happen is an increased focus on education and guidance on student loans for OUR kids when the time comes.

I really feel like millennials are the only ones that can break the student loan debt cycle.

 

Getting a college degree costs a lot of money in the form of student loans. Click through for tips and advice to help you or your loved ones decide if higher education is worth the money and debt. #studentloans #debt #college #money

Live differently. Your bank accounts will thank me later. ~M$M

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Comments

  1. I have an undergrad and grad degree that I’m still paying off. I’m a teacher and am taking advantage of any loan forgiveness I can. State and Federal government have provided some nice incentives that are helping relieve a little of the pressure.

    Do I think my loans have been a good investment? Yes. I love teaching (not the paperwork, though) and love getting to work with kids everyday. Do I feel the burnout? From mid March until Mid May every year! I often question why I’m still doing this, but then something happens to remind me. It’s usually a student achievement or comments from a colleague that keep me inspired and coming back for more.

    In the end, I’ve got too much student loan debt. There are choices I would make differently if I did it again, but I’d still be working towards the same outcome. Since we don’t get to go back in time, I’m make the best decisions I can with the money I have to get myself out of this situation.

    I 100% agree that we need to be doing more to teach students about student loans and personal finance. If I had a better knowledge when I was 18, I would be better off today!

    Reply

    • Yeah it kills me that schools neglect that part. I haven’t really been able to put my finger on why though – it’s not like they are leaving that out of the curriculum on purpose!

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    • My degree is in manufacturing engineering technology. Not a bad degree to have but also not a law degree. I was fortunate enough to get a scholarship.
      However, I wish I would have done something entrepreneurial during my college years. I think without a college degree and also not being entrepreneurial I would have been in a bad place to succeed financially. I think college debt is means to an end. I wish more kids in college would be encouraged to maximize their potential and minimize exposure to debt additional while working to have a good plan to get out of student loan debt during school and after graduation.

      Reply

  2. My accounting degree was 1000% worth it, not only financially but for my sanity. I’m doing what I love and make a good living, the loans will be paid off eventually but having a stable career and a very versatile degree will serve me throughout my entire career. Without it I’d probably be working some menial job and hating every moment, versus the few moments here that annoy me 😉

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  3. I think it was a good investment. I just wish that I worked part-time during my school years instead of waiting until graduation to start paying off my student loans. I rationalized my laziness by telling myself that my grades would suffer if I started working, but I was just justifying not working. This is a lesson I will teach my kids as early as possible.
    I don’t mind the fact that I graduated with debt, but I wish to make the load a bit lighter for our kids, so we plan on financially supporting our kids maybe 25-50% of their post-graduate cost, depending on our financial situation.

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  4. Yes! Granted, I am a gen-x’er not a millennial but the question is still relevant. I graduated from a small private liberal arts college in 1991 with $15,000 in student loans (inflation adjusted to $27,000 today). It took me 10 years to pay them off. While painful at the time I’d do it again in a heartbeat. As a first generation college student coming from a blue collar lower-middle class family and an inner city public school where only 15% of grads pursued a 4-yr degree, student loans as part of a finincial aid package was my only viable option to lift myself up by my own bootstraps to better my life. While I have tremendous respect for those who choose trade school or military as an option, for me the liberal arts education changed my life enormously. As a freshman I had no idea what I wanted to major in or what I wanted to “be when I grew up”. Through taking a variety of classes across all disciplines I ultimately discovered my gifts, talents and abilities and found a way to use them to make a good living and make a positive impact in my employees, my customers, on my family and on my community in general. Imho, this would not have happened with out taking on loans to earn that degree. Quite honestly, in the neighborhood I grew up in; I’d likely be dead or in jail by now without going that route.

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  5. Great summary and interesting graphics.
    I think that the answer for this question mainly depends on the person, every situation is different. Even more important that how do they handle their financial situation afterwards they finish studies. A life packed with bad financial habits cannot be saved even with a college degree and a higher paying job however a no degree worker with good financial IQ can reach further.
    Another important thing that if someone goes to college take it seriously. There is no pile of debt which can compare to wasted years in terms of inefficient resource consumption (sadly I speak from experience…).

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  6. Hmmm, this is a toughie. A degree is usually the prerequisite for any white collar job, so in that way, a degree is a good thing to have. But I think the issue is that many of us weren’t smart about how we got our financing. For example, I went to a fancy private university with an annual cost of ~$40,000. I SHOULD have gotten basic credits out of the way at a community college, transferred to a state college (that I could have gone to fo’ free), and worked during school to build my savings.

    But that’s not what I did. 🙂 So I think they can be a good investment if you treat it as an INVESTMENT and not High School 2.0, like I did. I wish I had taken the emotional factor out of it and treated it like a business decision.

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    • Agreed! I was blessed with wise parents who couldn’t afford to pay for college for 5 kids :). Running Start (free!) at the community college followed by 2 years at the state university while living at home means 5 honor students worked their way through college/ applied for scholarships and graduated debt free across the board.

      Of course, that came with its own downsides. Working to pay meant only 2 of us did internships in our field, and state colleges don’t necessarily have the prestige/extracurricular/perqs that private or big-name colleges do.

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  7. I agree that college is TOTALLY a good idea. I’ve flip-flopped over my short post-college time though in whether the price tag/debt was worth it, though.

    Here’s the thing: for me (and lots of other people), I think college is the right decision.
    What’s NOT the right decision is taking on debt blindly.

    I could have gotten through college with zero debt if I tried – but instead I took on a mountain of student loan debt because it was the easier route. My parents set it all up for me because they didn’t know any better.

    Also, as far as natural science degrees go – is that the new liberal arts degree? I have two degrees in wildlife biology and as yet am still unemployed in that field – and I’m not the only one. 🙁
    It DID help me a ton in other areas, though! 🙂

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  8. I definitely think it was worth it for me to get a degree – I love what I do (dietitian) and the education component is important. Also, I always tell younger people that college is so much more than school, it’s really about learning to become an adult and figuring out who you are. Plus it was just so darn fun. I wish someone had told me that student loans were not the only option. I worked my tail off in the summer during high school and all year around during college, but alas I spent my earnings on fun instead of saving it or putting it towards tuition. I also never knew how many scholarships were available. And I could have gone to community college for a year for next to nothing. You know what they say about hindsight!

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  9. I was lucky and blessed to have my parents pay for most of my school, so I walked away without any loans. However, if I had to do it again and take out loans, I would – for sure.

    I majored in Information Systems, and the internship I had in college set me up for a great career. I make decent money now because of the jobs I’ve landed, but honestly, more than anything, the experience of going to college was the best. I met some amazing people, I learned a LOT about myself, got to travel internationally and live overseas for a semester, and that’s the time when I really grew as a person.

    My mom always tells me that she saw the biggest change in me when I went abroad. I grew up in a lot of ways and it really boosted my confidence as well, which has helped me since I’m extremely introverted and self-conscious.

    I think that the intangibles are really difficult to quantify, but they can’t be overlooked. I don’t think I’d have gotten those experiences if I had gone straight to the workforce.

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  10. Great read! Student loans are such a huge issue right now. I personally was able to get my Bachelor’s in Sociology without taking out any student loans (big thanks to numerous scholarships). I ultimately decided to forego a Master’s degree when I saw that I would need to take out over $50,000 in student loans just for my starting salary to be $40,000. Not worth it. Two years after graduating, I found my way into the mortgage industry (which I love). My current line of work does not require a four year degree, but I think having a degree has allowed me to progress more quickly than my colleagues without degrees.

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  11. So i guess ill be a bit of an outcast here. I am a millenial and i do not have a degree (although im close to getting an associates) and i have an extremely good paying job. I work with other millenials who have just received their engineering degrees, and they get a little discouraged when they find out what I make in reference to them. Simply put, i put in the hard work and studied my butt off to get where im at in my field of work. I do feel though for me to continue to advance I will need to complete my Associates and possibly more depending on how far I want to go.

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  12. Student loans are a great investment…but you must have a plan! College students must do their research on their projected salary after graduation. I think a good reference is to not take out more loans than what your first year salary would be. A teacher would not want to take out $100,000 in loans, a pharmacist would be okay. I think that colleges/high schools need to do a better job educating students about this. I hated the $100,000 my husband and I had after graduating, and while it took 4 years of 50-60 hour weeks I paid it off! It’s really easy to get into debt, but hard work will get you out.

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  13. “Millennial college graduates earn 17500 more than their peers with a high school diploma.” Yes. But what they forget to mention is that I’m sure those high school graduates included kids that don’t work, and the majority that do work minimum wage jobs. They fail to mention the few motivated millennial high school graduates that work hard straight out of school and make more than I do with my masters degree… I pay my car mechanic, boat mechanic, electrician at least twice what I make per hour. These jobs don’t require much education and definitely not a 4 year degree but they do require hard work, manual labor, and long random hours. This new generation doesn’t have the drive to work theses jobs, even though they are high paying jobs.

    Reply

    • Yeah sorry man the “this generation doesn’t have the drive” argument doesn’t mean much to me. There are a ton of millennials that are hard workers – they just weren’t guided to trade jobs. We grew up in an education system that valued college vastly more than working in the fields you mentioned.

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  14. Mine was absolutely worth it. I majored in accounting and got a great job right out of college. I went to a private Christian college in California (my home state) with a sticker price of just over $100K for four years, but because we qualified income-wise for grants and scholarships, I walked out with only $14K in student loans. And the only reason it took me five years to kill those is because my mortgage interest rate was a lot higher, so I was initially focusing on paying that down.

    But I agree, trade schools and such need to be promoted more as respectable options. Not everyone wants to be an accountant. So if you don’t want to work in a field that requires a degree, go find another path. If you’re diligent with money and change your mind later about your career path, you’ll have the financial means to afford college later in life.

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  15. I think if you want a white collar job, student loans are the way to go. But do you really want that for the next 20-50 years? Maybe yes, maybe no. For me, 20+ years in, no. I wonder if spending the same time you would on college learning about personal finances (from blogs such as this, Mr. Money Mustache, etc.), and also learning about social media and marketing, all while earning an income instead of debt …. would let you come out ahead. I should run a spreadsheet on that some time. Good food for thought.

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  16. As a grad with a BA in English, and MS in Ed, I would say my degrees taught me how to learn, how to think, and how to communicate what I had learned. They were very helpful in the staff jobs I had. They assisted me in my aviation career, and my current engineering track. Of our six children, we have been blessed so far to have five of them complete their degrees without debt. We provided some finances, but they had to find scholarships or work to supplement. Two sons finished their degrees in three years.

    If my experience can be of assistance, I think we’ve grown so used to debt, we assume it is a constant.

    Thank you for your blog and the sound approaches to reducing/eliminating all kinds of debt. Referring to one of your previous articles — after learning a hard lesson early on regarding car loans, we rarely ever get a brand new car, and drove ours as long as we could. Amazing how much freedom not having a car payment — or better yet making your “payment” to yourself, and them buying with $$ — can offer!

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  17. I am a retired educator and love your blog. Naturally I think a college​ degree is worth it. I did all the dumb things of loans, partying, and everything else, but without my degrees I would not be retired and debt free. Both my kids have degrees, loans, and great jobs–geologist and nuclear engineer. They will be successful too.

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  18. I believe that the college degrees are worth it in so far as they GET you where you need to be. It gets your feet in the door, then the rest is up to you to land a well paying job.

    As a foreign student, I had to pay for every penny of my education out of my own pocket at inflated rates, but because I started school late at 32 as a mature student, I had a perspective that younger students don’t have. I saw the degrees as a means to an end. I was focused on getting through school at the fastest pace possible.

    I picked a community college to minimize the cost at 14K a year excluding books and other fees, I worked part time on campus, maxed out at 21 credits each quarter including summers and got my college transfer AA in 18 months.

    I transferred to a private liberal studies college and completed my BA in Liberal Studies with a focus in Interactive New Media Narratives in another 18 months. You might wonder why I picked a private college, well it didn’t matter if I picked a state college as I would still be paying out of state rates at $5.5K a quarter excluding books.

    The private college had the advantage of allowing me to apply my life experience as credits to minimize class time, but they were credits for which I still had to pay for. It also allowed me to design my education to create the degree I wanted. I graduated without any debt but was flat broke as I wiped out my life savings.

    A year later I was accepted into the masters program and was granted a graduate assistantship scholarship at the same college and completed my MS in Leadership and Management degree in another 18 months while working as a graduate assistant. Again, I graduated without any debt but I was still flat broke.

    The moral of the story is that anything is possible so long as you are focused at the end game.

    Ultimately though I must stress that it was the BA got me the job I needed in this country, it got my foot in the door. I may not use the degrees at all in my line of work, but who cares. It got me where I needed to be.

    Living as poor college student for so long taught me frugality, but it was financial education that taught me how to manage my money properly and help it grow.

    12 years later, today, I can count myself as part of the FIRE community.

    Again, all it takes is focus, determination and a will to succeed.

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  19. My parents always told me “your education is something that no one can ever take away from you”.

    I think that my business degree was huge in allowing me to be where I am today. It helped me land my first job as a Jail Deputy which got my wife and I off to a great start financially. It’s also been HUGE in running our side hustles/business.

    It’s so useful to have a business background for marketing, accounting, finances, etc. It has also really helped grow our website fairly quickly because creating content comes second nature. We love talking about finances, money, budgeting!

    My wife has her masters in literacy which she needed to become a teacher in N.Y. state. Graduate school was expensive but when you take into account the benefits, pension, and summers off it was completely worth it. She will be working full time on the blog with me this summer so it’s worked out great.

    Education about student loans definitely needs to be discussed more and in more detail. It has become a way to easy to just follow the norm and take out $50,000 + in student loans without a second thought. We have a few friends with close to $100,000!

    There are certainly many ways around taking out so much student loan debt. Those options should be taken far more often.

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  20. I’m a first generation college graduate who came from a lower class farming family. I received a degree in education 6 years ago and immediately took a job at a local mine that was being built(my wife was preagnat and I couldn’t afford to wait for a teaching position).

    I worked my tail off there, doing night shift, exceeding 70 hours a week, doing physical labor for about a year. I even turned down 2 teaching offers because I was nearly doubling a starting teachers income. I was promoted to night shift lead, day shift lead, moved from production to shipping/logistics and essentially became the shipping manager after two and a half years. I’m loving my position which involves decision making/ critical thinking and management of a small crew of people.

    My investment in my degree was worth it. It contributed to who I am. It contributed to my ability to make money.

    I observed an attitude you need to avoid in the workplace. “I went to college, I shouldnt have to do this.” This attitude is a garantee to hold you back.

    For those of you going to college, understand your debt you are taking on and save money before and during college. I had no idea the debt I was taking on.

    My wife and I did the debt snowball the last few years to eliminate debt, I’m so grateful we did. We have a lower debt load and much less stress, we also pay cash for as much as possible.

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  21. I come from the world of higher ed and the system is broken. We are sending our high school students into a buzzsaw of student loan debt unlikely chances for success.

    I think the years ahead are going to bring tremendous change to college. It will be more about what you can do, not how long it took you to get there (or how much you paid). Elite universities will never go away. But many of the private, liberal arts colleges will adapt or perish.

    Exciting stuff, and lots of room for new innovation!

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  22. I always look at ROI when it comes to these things. I was lucky enough to have received a scholarship for tuition, but had I not, I would have considered community college for two years and a state school for two years.

    However, in some communities (middle, upper middle, upper class) there is a stigma against going to community college or commuting to state school. It’s all about where you got in, where you’re going away. And when you’re in high school that type of thing is important for shallow reasons. But does it really matter come September? And how different is the education, actually?

    So I wouldn’t say that education is useless, but I think earning potential and future goals should be taken into account. For instance, if a goal is to buy a house by age 30, maybe sacrificing some of that college fun is worth it…maybe pick up a part time job to start making a dent in your loans. But a lot of people don’t think this way at 18.

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  23. I believe income of degree holders vs income of non-degree holders statistics can be skewed by the fact that the average college graduate probably has more grit than the average high school diploma holder. I can argue that the college graduate doesn’t make more money because of thier degree but their character.

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  24. I’ve got a question for those who have been to grad school or have any knowledge of the field I’m about to mention. I’m a senior history major at a small university in Virginia (graduating in May). I’m aware that this degree probably won’t help net much money on its own. Because of this, I’ve planned ahead and determined to obtain a master’s degree in library and information science in hopes of becoming an archivist, or a related field. also know that this degree may not result in a fortune, but does anyone think that the combined weight of these 2 degrees could be worth something in employment?

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    • I think it will depend on if the public library system will be able to stay afloat in the face of an internet, social media, technology age. When I left the library system, they were struggling to find ways to increase their relevance. Libraries are extremely important in low income areas because they provide people with resources they might not otherwise have been able to afford; however, with smart phones and 3g, ebooks, streaming channels, etc. the library system is struggling. Although, there are always university libraries and archives. With the combination of a history degree and MLS degree you may do well with that. You may consider having a concentrated area of expertise, which means you’ll have to find a job that aligns with your specialized area of knowledge. You may be able to make a higher income with a government job. Look on federal government websites to find archival jobs and what qualifications they are looking for. Then apply whatever that is to your Master’s Degree. Lastly, that particular degree combination may help you to acquire archival jobs with museums. If you’d rather focus on archives than being a librarian, you can acquire degrees more specifically designed for that. There are also degrees specially focused on book restoration, preservation, etc.

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  25. Thanks for sharing this. I got my degree in Psychology and used my degree to work in my field of choice doing work that I felt was worthwhile and I enjoyed even though it didn’t pay well. Looking back I wish I had gotten a degree in something that pays better such as nursing but college overall isn’t a waste if you are choosing the right degree. At the moment it doesn’t feel worth it because I’m a stay at home mom, with a second child on the way and those loan payments don’t pay themselves. But that’s a different discussion entirely. Later on I’ll get back into the workforce and put my degree to use again.

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  26. It was worth it for me when I started college in fall 2006. Luckily, I got a decent amount of scholarship money at the time that only left me with $27,000 in loan debt. (School was $40K+ a year). I also chose computer science, a field that is not going to lose steam anytime soon (Although I now work in marketing). But, that degree and experience helped me great some good work experience right out of college, which I probably would have not gotten without that piece of paper.

    That being said, if I had to start today, I would choose something different. Access to scholarships are more competitive, costs are rising, and the job market can be tough.

    There are a lot of technical schools and schools offering specialized degrees that cost less and take less time to graduate. There are also programs like coding schools, marketing schools, etc. That are like 9-month programs, get you experience, and help you prepare for jobs. These can be much more effective. I think it all depends on what you plan on doing, what you can afford, and researching where that career worth is going (is it growing? Is there demand? Where can I move up? Are salaries growing?)

    Good post!

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  27. It was… However, I did not go to college right after high school because I had no clue what I wanted to do with my life, and I certainly wasn’t going to go into debt for it. I worked a couple entry level jobs to gain experience and then cash flowed a few general core classes at a local community college. That’s when I fell into the Horticulture program at my CC. Took intro classes and ended up getting a job in the Horticulture industry that offered tuition reimbursement. I learned a TON about plants in that program and it helped me get into better positions with the same company. There was no B.S. Hort program in the area, so after getting my A.S. in Hort, I complete a Bachelor’s in Business. I went to a university that did a 3 plus 1 with my CC essentially keeping cost down. My worked helped with a chunk of the tuition and I cash flowed the rest. The Business degree taught me some good stuff, however, I think I does more for my resume than anything. School is good, with that said, not all good jobs require it, and I certainly don’t think you should go with out a plan.

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  28. I feel like I have an interesting perspective on this because I work with college students at a university. I think it’s a complex question. I do think a college education still has value, but it definitely depends on the field a student wants to go into, and their reason for going to college. If a person is going to college because they want to better their financial future, certain career paths and majors will get them there. I work with Nursing/Health Professions students. Most of my students if they get into their clinical program will be hired making a better salary than I currently make (with my Master’s degree). But, not all of them will get into their programs. In fact, we can frequently predict who will be successful based on high school grades, placement scores, and first semester grades. So it’s hard for me to feel like I’m not doing students (who I know won’t make it) a HUGE disservice because I know most likely they’re going into debt to go to college. This is a problem but not one with an easy solution when you actually work in higher ed. The other problem I run into is that these students frequently default into another major once they’re unsuccessful with little career exploration, and one that’s not necessarily going to be a high paying field. So now they’re in debt, with a degree, but not going to be making “good” money like they planned. One thing that is nice is that I work for a state college (we’re actually the cheapest state college in my state). I think picking colleges that are affordable is critical if you’re trying to keep debt ratio down. It’s nice to go to your “dream” school, but those schools typically have a price tag that’s hefty. I did not go to my “dream” school, but I went to the one where my tuition was covered. I graduated without student loans. I wish that a “gap year” was something we did more in the US. Give students time to figure out life and what they want. I also highly advocate for trade schools/community colleges to save money or start career paths sooner. This is not to say that a liberal arts education has zero value, I can still make a case for learning critical thinking skills and how that can help in future careers. But I think a lot of it has to do with the specific person, their goals, the school they pick, etc. etc. Even within my field I work with students who can’t tell me why they picked this field or they picked it only for money (that rarely works out well in the long run), or have wildly unrealistic ideas about what starter salaries look like in their field. Really great question and one that I think will continue to be asked (especially given the growing costs of college). However, my last thought, we need to do a better job educating students about financial aid and the costs associated with college. I can’t tell you how many times I’ve asked a student about their financial aid and all they can tell me is “I get FAFSA”. They don’t know what they’re getting, if they have to pay it back or not, and the differences. (I taught one of my student workers about the difference between sub, unsub, and alternative student loans because she was clueless). I have also seen people borrow money to live on (this happened more when I worked at a community college) and not for educational expenses. I know some people need to do this to afford school, but I did have a person legitimately tell me they were borrowing this money to pay off their DUI…..or to help cover Greek life expenses…..so I wish that there was a more rigorous process to receiving student loans and understanding their impact. Sorry for such a long post!! Have I mentioned your blog is one of my favorites? haha

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  29. I started college in 2006. I went away to a state school and decided to move home my sophomore year and attend community college to finish my associates degree. I was working part time and then decided to move to full time when the economy started to crash. I ultimately decided not to continue on with my elementary education degree. I have an associates degree and had around 10k in student loan debt from it. I couldn’t imagine having 40k+ in loans on a teachers salary. I am glad I didn’t finish for a multitude of reasons. Depending on your degree I can see student loans are being helpful but school choice and finding a way to supplement the loans with work is important.

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  30. I recall in high school to pick a degree that will provide a job have a starting salary equal to the amount of student loans you will have to take. The idea being that if you really focused, in theory, you could pay that debt off in 1 year. Now in reality, you won’t pay it off in one year, but, it’s a decent rule of thumb to ensure your payments are reasonable. And it also doesn’t say don’t go college, just make sure you can earn enough to pay off that degree.
    I was also told, don’t pursue a degree unless the name of the degree is in your starting job’s title such as Mechanical Engineer, HVAC specialist, Teacher, Financial Analyst, Truck Driver, ect.
    By choosing a degree directly linked to a job, a student could check their starting salary very easily and see how strong the job market is. Then, if the starting salary is less than the amount of loans required, they could choose a different degree, or find a way to take less loans such as a scholarship, community college first, or whatever.
    I went to community college for 2 years then university for 3 years to get a Mechanical Engineering Degree and my starting salary was almost double what I took in student loans. I also had the opportunity to take well paying internships every summer to keep my student loans down. My loans were all federal loans so the interest rates are much lower then my investments are earning, so I’m in no hurry to pay off my loans and their payments are low. Basic macro economics and personal finance should be a required course in both high school and a refresher for every college degree. What’s the point in earning a ton of money if you aren’t taught how to properly spend it?

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  31. Looking back, after making the typical student loan mistakes of changing majors and picking a prestigious and expensive university, we see now picking a degree and university based on affordability and the realistic employment opportunities matters most.

    Start off with AP high school classes, add in community college and work experience that pays, almost paying as we go, would have been a better choice over living off of student loans and trying to live like our parents who took 20 years to get where they are.

    Unfortunately, both my wife and I worked part time at $10 to 15 an hour, but went to a university that cost $1000 a credit hour. We could have paid $300 or less a credit hour if we choose a less expensive option such as community college, instate or a non-profit university. Most employers could care less where you went to school, but care if you have the smarts and personal drive to figure out what your vision is, then have the drive to put in the work to live that vision.

    I can now teach my kids about wise career and college choices. If it took $100k in student loans between my wife and I to learn that valuable life lesson, perhaps it was worth it. I regret the way we handled finances in college. But I am not going to dwell on it. It took me 10 years in the Air Force to be finally out earning our past poor college choices. Between a good realestate investment, living on a hard budget, and doubling my income over the last two years, we will be debt free in 36 months.

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  32. I’ve had my bachelor’s in social work for 6 years (…talk about a NOT lucritive pay scale), and it has still more than paid for itself. Full disclosure, I don’t have loans as I had many academic scholarships and paid the rest in full. I don’t regret the degree or the cost, but what I do regret is the highschool-to-college conveyer belt. It took 6 years and 3 major-changes for me to graduate. I was frequently told “go right to school or you’ll lose your momentum,” but I FIRMLY believe in waiting until you have a purpose/objective before enrolling in a university. It doesn’t take long to figure out what you want when you’re working crappy entry-level jobs.

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  34. I have to disagree… I have friends who spent 100k at 7% interest to get a degree making 35K pre tax a year as a teacher…. They will never get out of debt, never mind buy a house, car, or have any money left over to invest. My wife and I both have Masters degrees and make good money, but what nobody takes into account is the progressive tax system that punishes us for making more money, combined with our high student loan debt. Our second largest payment after our mortgage is our student loan. We are actually liquidating our retirement accounts to pay off the student debt just so we wont have to have it hanging over our heads for the next 25 years. We can only deduct 2500 dollars off our taxes per year for this interest, although the amount of interest we pay is twice that. I have a friend who just graduated medical school, her minimum monthly payment on her loans is 3800.00.. Combine this with the fact I pay my mechanic, plumber and electrician 75.00 an hour, I find it safe to say that a college degree is not worth it, not when trades are paying 75.00 an hour with minimal education. Education is important, but not necessarily a 4 year degree in basket weaving.

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  35. My parents paid for college and I am being paid to get my PhD. However, I know I am among the very lucky people so I see it as worth it. My wife was not as lucky and we paid $50,000 in loans over 16 months. We have various opinions on the matter, but I believe it is still worth it. While we hear about many people who say college is not worth it that is mostly the survival bias talking.

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