College was once affordable for many Americans, particularly in the years after WWII when the GI Bill gave the gift of a college degree to those veterans who otherwise may not have been able to afford it.
However, times have changed dramatically since 1944, with many college graduates in the 21st century starting their freshman year in life heavily in debt. The year 2020 has set the record for most collective student debt at $1.56 trillion according to Forbes. The average college student owes $29,200, and student debt is behind only mortgages as the leading amount of debt in the U.S.
This may lead the prospective college student to wonder if it is worth going to college and getting into massive debt. The answer depends on a variety of factors, and there are pros and cons to each option.
How Much Does a College Degree Matter?
Although there are many trades that can earn a healthy amount without a college degree, in general, those with at least a bachelor’s degree, even in relatively low-earning social sciences and humanities, still tend to make more than those with only a high school diploma, around 67% for men and 84% for women.
However, this depends on the career path. A police officer, a job that does not require a college degree, can earn around $60,000, which is higher than the earnings of Humanities graduates at $56,000. Executive Assistants, electricians, and sales representatives on average take home more than humanities and social science graduates, who earn in the low to mid-fifties.
However, STEM subjects, business, medicine, and law earn substantially higher than this, from between $60,000 to a six-figure salary and beyond. Keep in mind, though that law, medicine, and in some cases, business require graduate degrees which means more time in school and much more debt. Many people feel, however, that the pay is worth it.
What Kind of School?
Not all four-year degree programs are created equal. Some may be earned in liberal arts colleges with well-groomed lawns, plush facilities, and countless perks. Other students may have to live in an old dorm or may choose to live off-campus to save on room and board and attend a state school.
The difference between the two can be staggering, between $22,000 and $50,000. A student has to decide for themselves what kind of debt they can afford compared to what type of degree they want, how much they can expect to earn, and what resources they are starting with.
What Are the Options?
The decision of whether the debt is worth it is an individual one. It may be a question of whether to attend a cheaper state school and graduate with less debt and forego the acceptance to an expensive Ivy League school. Other students may opt to work part-time to earn their way through school and cut down on debt.
At the other end of the scale, a prospective student may try their luck on high-earning degrees that require only a high school diploma and a certificate or may decide to go for broke (hopefully not literally) and hope the debt will be worth the substantial income they hope to earn.
Whatever a student decides, the choices aren’t easy, but with enough drive, planning, and enthusiasm, most students who try can make one of these options work.
What if I can’t pay my student loan?
Private student loans are often viewed as the least desirable type of debt to have because they cannot be forgiven even in bankruptcy. However, there are some circumstances under which these types of loans can be settled. You need to contact an experienced professional to see if they can negotiate a private student loan settlement.
