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August 22, 2006
Student Loans, College Enrollment - Is it worth the risk?
With summer winding down and the school year upon us, college students are heading back to school. By now the student loans are in hand and tuitions are likely paid. The daunting cost of text books is just around the corner. The cost of education has come to outrageous levels and many students are looking at an uncertain future.
Is the cost of college really worth it?
Many students leave college with debts in excess of fifty thousand dollars and for what, a shot at a decent job, notice I said decent not great.
For the most part students are facing a very competitive job market and the nature of today’s business is to hire the young guns right out of college. Alright, so it seems you have a good chance of landing a job, but is that job going to provide you with the ability to support yourself considering the student loan repayments?
Businesses hire the fresh college grads for two reasons:
1. For their enthusiasm and give it all attitude
2. New grads will work for less.
Now think about it. Is it worth it to graduate with $50,000+ in debt load for a low paying job?
The enthusiastic new grad may think so. The thinking being that they will climb the corporate ladder and settle in with a nice salary over the years.
Guess what!
After a few years the enthusiasm for the job dwindles and the salary expectations increase.
Now you (the new grad) are no longer the new kid on the block. Companies will be looking for ways to push you out the door and hire a fresh batch of youthful go-getters to run the show and the cycle will continue.
It makes sense economically for companies to do this.
One more thing, don’t forget about the fact that we are living in a global market place and what Americans perceive as low pay, other workers in other countries view it as a small fortune.
There was a point in my life that I was going to pursue a Masters degree but realized the risk was not worth it. I chose to pursue launching my own business, which has been a very wise choice for me. No student loans to pay off and huge cash rolling in. Nobody to answer to and a life of increased freedom.
Just some food for thought before signing for that student loan.
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