Take a quick peek at the video below....
Professors, Authors and even a Provost are admitting that the education system has sold a bag of goods to parents and students. Outstanding student loan debt is $1.3 trillion dollars. That is more than the credit card debt the U.S. population holds. In 10 years, student loan debt has increased 511%. 2/3 of graduates average owing $29,000...those are the ones that graduate.
54% of recent graduates work only part time and that is outside of their primary field of study. Student loan default rates have doubled in the recent years...and oh, by the way, the majority of student loans are not eligible for bankruptcy. This means that you are stuck with them the rest of your life!
Let's get real for a moment, 44% of students fail to complete their degree. This paints them into a corner of worst case scenario. No degree (to get a part time job outside of their field of study) and they have a debt that they literally can't get rid of, even through bankruptcy.
There is an answer. Don't go to college unless you know what you want to do when you get out AND you know that the job you want when you get out will still require a degree.
Simply stated, things are changing so fast in the marketplace that many times what is studied in college is obsolete within five years. I believe that smart companies will soon wise up to the fact that they can get a better worker by finding a "young hustler" that has not gone through the formal education system and give them the desired skills for the task at hand.
Who will lead this charge? I'm not sure, but it will be fun to watch it unfold.
I like to share short musings about the current financial topics of the day.