Being that I am coming close to my graduation date (January 11th) from Towson University, I’ve been thinking. I am moving into an arena like one that I’ve never experienced before while letting the whole college life fade into the distance (the music stops, back to reality). I’ve been thinking a lot about the value of my college education (college education as a whole, better yet the whole educational system).
As a child the sermon went like this “Go to school, get a good education, get good grades, graduate, and get a good job.” It’s the end of service and I don’t think I understood it. I’ve followed this whole process of going to school and I don’t think I really understand the reasoning or value behind it.
Really, what is the value of your college education?
Is it worth your FREEDOM?
Absolutely NOT, if you asked me. You probably never thought about it this way, but following the accepted norm about acquiring college education can be detrimental to your ability to be financially independent at a young age. The average college student graduates college with a debt of about $20,000 (and that’s just for 4 year undergraduate programs, most take longer).
Let’s do some math (finally I get to use what I learned in school, yes).
Average Debt = $20,000
Average Interest = 6%
Average monthly loan payment = $150
After the 1st year, Debt = $18,200 (Debt-Payment($1,800)) + Interest ($1,092 ($18,200 x 3%)) = $19,292 (which is about $700 less than your original debt, that means about $1,100 of your hard-earned-college-educated-degree-carrying-dollar went towards interest to the loan provider. WOW!
You are probably upset right now, so let me stop. I hope you understand where I am going with this, at this kind of rate it will take you more than 30 years to pay off all of your college debt (modern day slavery). Do you see why most people have financial problems (and need a bailout)? If you’re like me and you graduate or graduated at the age of 22, you will still be paying for college debt well into your 50’s. Now…is it really worth it?
Some people may answer yes to this question (I don’t understand).
I am not saying that college is totally worthless, I went to college (but graduated debt free). What I am saying is, most people don’t have a game plan when going into college, hence they come out confused, stressed, can’t find a job in their field, sadly in debt, and by the time they get themselves together…it’s to late, the dream has been sucked right out of them.
So again I ask you, what is the value of your college education? Is it worth not being able to put yourself in a position to chase your dreams? Is it worth not being able to start chasing financial independence? Is it worth the stress of having to pay for the rest of your life? Is it worth having to keep working in an environment that you don’t like, but only do so in order to pay the bills? Is it worth living your whole life, only to come to a realization that you where never FREE…but only a slave to student loans?
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[...] the sense of responsibility that comes with charting your own course (This might be the reason the school system works so well, because it charts the course (pun intended) for those who chose to enroll in [...]
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I figured it would take 18 years at that rate. But, if you double the payment it will only take
6 years. Plus, if you can pay on principal with no penalty, you could probably knock it out
in 5 or less if you were aggressive.
You have many valid questions. I wish to add one more dimension.
When people marry, I wish they would think long and hard about the number of
kids they can afford. It is each couple’s responsibility to take care of their children
(as much as they can) and not the world’s responsibility to foot the bill. (Although
I realize hardship happens which is why I believe in social programs.) This responsibility
includes saving for their child’s college education as much as possible.
It is also their responsibility to make sure their child is engaged in learning and has
opportunities to explore and cultivate their dreams and talents. This will help develop
self-esteem, career paths, and a sense of direction. Even if parents are too busy, they
can’t possibly be too busy to pick up a phone and ask intelligent questions of those
who are in a position to help their child.
Most folks I know hand their kids off to the schools and leave it at that. It’s no wonder
students no idea as to what to pursue at college and then graduate with a frightening
debt.
I applaud you for being debt-free, for being industrious, and for asking thought-provoking
questions.
Comment by Miss C — January 11, 2009 @ 1:26 PM
Thanks Miss C, I enjoyed your comment.
Comment by chiko777 — January 11, 2009 @ 2:32 PM
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