Should you go to college?

 

“In recent years, the average college graduate with just a bachelor’s degree earned about $78,000, compared to $45,000 for the average worker with only a high school diploma. This means a typical college graduate earns a premium of well over $30,000, or nearly 75 percent.” https://libertystreeteconomics.newyorkfed.org/2019/06/despite-rising-costs-college-is-still-a-good-investment.html

Does this mean that you need to go to college? First, what is essential to understand about this statement? Second, what word(s) needs to be looked at carefully? Can you see it?

To what time period does this refer? Is it an average over time, such as the 20 years after high school graduation? Or is it the individual’s income in the 20^th year after graduation from high school? How many people were in the sample? Did the survey consider the college graduate’s debt from attending college? Were Bill Gates, Rhianna, and Mark Zuckerburg in the sample group of those not graduating from college? Were Jeff Bezos and other CEOs in the selection of those graduating from college? In other words, what was the distribution of the sample? What was the size of each sample, the range, and the distribution?

Are you average? Is anyone average? There is a range of earnings for college graduates. The downside is that a college graduate earns nothing. The upside is unlimited. Mark Zuckerberg is estimated to have made $23.4 million in 2021 and had a net worth of more than $100 billion. You can see how the average college graduate’s annual income might be distorted by including Zuckerberg in the average. Since he did not graduate from college, he is probably not included in the average. Still, the average probably includes CEOs of Fortune 500 companies whose median income is $12.4 million. Can you see how this distorts the average? For each person making $12.4 million, it takes 159 people making nothing per year to lower the average to $78,000. A better question is, what is the median income of a college graduate? In 2019 Statista reported that the median income of a college graduate was $45,564 https://www.statista.com/statistics/642041/average-wages-of-us-college-graduates/ .

By now, you can see the fallacies regarding believing statements like this even though it was published by a reputable source, the Federal Reserve Bank of New York.

So, how do you decide what to do after high school?

I suggest that you consider the following:

Is there something you are passionate about and that you want to devote your life to? Does your passion require a college degree? If it does not, can you make a living at it? How much are you willing to sacrifice to follow your passion? No one can answer these questions except you. Remember that for every Rhianna or Adele, there is a singer that cannot support herself through her music. Are you good enough and passionate enough to stay the course through the hard times? Remember that most overnight sensations worked for 20 years to get discovered. The 10,000-hour rule is appropriate in many fields, and it is often 20,000 hours. The 10,000-hour rule says that you need to work for 10,000 hours to become an expert in a particular area. However, it only explains part of what is necessary to excel. It also takes talent. I could practice singing for 10,000 hours, and I would never become adept. I am tone-deaf and cannot carry a tune in a bucket. So, you need practice, passion, and talent to excel in a field.

If your passion requires a college degree, and many do, how can you decide where to go and how to pay for it. Read on to discuss how to choose where to go to college and how to pay for it in the next section. But first, consider what if you don’t have a particular passion or maybe haven’t found it yet? What can you do? What are you good at? Are you good at math and science? Are you good at art or music? Do you enjoy working with your hands making things?

I suggest getting experience in as many different areas as possible. Select an area that interests you, get a job at the bottom, and observe. Talk to the people that work in the field. What interests them? Why are they working there? You can also ask family friends, other students, teachers, and public figures. It takes a lot of work to search and find what interests you. You can do this in high school or after. Consider joining the military. They will give you training and free college after a four-year enlistment.

If you enjoy working with your hands, consider a craft apprentice program. Most take two to five years. The advantage of an apprentice program is that you are paid as you learn. Also, check into local unions and technical schools. Consider a year in a technical school as an investment in your future. Some junior colleges offer apprentice programs in conjunction with unions and or contractors.

Choosing a College and Paying for it.

If you are reading this, you are likely considering going to college/university. Two primary considerations in selecting a college are: is the college accredited and how much it costs to attend. So, you are saying, but wait, doesn’t matter how good the school’s reputation is? The short answer is that for an undergraduate degree, not much. Of course, what school you attend for an advanced degree can matter, but that is a separate discussion.

It also does not matter where you get the first two years of college. A junior college is often a less expensive alternative to two years at a four-year university. In most states, the public four-year colleges are required to accept the first two-year courses for full credit. Of course, this assumes that you and/or your parents will pay for college. However, going into debt to get a college degree may be a bad idea. You will be starting your life in debt and may never get out of it, depending on your area of study. But, there are ways to get a college education for free.

One way to get a free college education is getting into one of the service academies, West Point, Annapolis, Airforce Academy, and Coast Guard Academy. These are very competitive, but you not only don’t pay for college but are paid while you attend. You should also investigate the ROTC programs at your college for paid tuition. (https://www.todaysmilitary.com/education-training/rotc-programs) Another method for getting a free college education is to enlist in the military. After a four-year tour of service, the government will pay for your education through the GI bill. (https://www.benefits.va.gov/GIBILL/resources/benefits_resources/rates/ch33/ch33rates080121.asp)  Another method to get free college tuition or with nominal fees is to move to another country. There are several countries where you can get a tuition-free education. https://www.mastersportal.com/articles/2672/9-countries-where-american-students-can-study-free-or-affordable-degrees.html The downside of this opportunity is that you will need to learn the native language of the country because they do not teach in English.

One more consideration:

You will likely have between 7 and 12 different jobs in your working career. The more skills you have, the easier it will be to find a new high-paying job. The purpose of your education is to gain skills and not focus only on getting a degree. Consider each class you take an opportunity to learn additional skills that will make you valuable to an employer. If you cannot figure out what skills you will learn in a course, ask your instructor. If they cannot tell you, consider dropping that class or changing instructors. Your grade-point average in college is important, but only for the first job. After your first job, your performance on that job is important, not your college grade point average.

A printable version of this article is available here.