Does College Pay Off?
That was the title of an interesting article in this month’s Money magazine. The writer interviews the president of Arizona State University and asks some very good questions about the cost vs. benefit of higher education today. The debate rages on as we constantly hear about the “student loan bubble” and all of the college grads that get out of school with loads of debt and can’t find a job to pay for it. At the same time we hear from State labor officials that there is a shortage of skilled trades: Pipefitters, welders, electricians, etc. Are we so focused on a traditional 4 year college degree that we are overlooking some very well paying jobs produced by technical colleges? Is the prestige of a 4 year degree worth more than a $75,000 per year job in a skilled trade that is in such demand that states are competing with each other to bring in those workers?
It seems more students need to be shown the options and then make their decisions based on real metrics…..
Maybe for traditional college bound students we should begin to evaluate colleges and majors based on ROI. Treat it like an investment and look at what kind of return you get (salary/job) vs. the cost of the education. One such website does just that, payscale.com has compiled a ranking of schools based on ROI: http://www.payscale.com/college-education-value-2013
Technology is always disruptive and eventually colleges will adapt to society needs or be forced out with new internet learning options. The easy money from student loans that have enabled universities to get big, bloated and expensive will eventually end and the student loan bubble will burst…..it is just a matter of time.