Inflation, rising gas prices, and higher property taxes are placing burdens on American families. Those of you who are looking at an upcoming college bill are concerned about how to get the most for your money with the best return on your investment and the best earning potential.
The college education is a major purchase for families and as tuition rises, more and more students are vying for financial aid. It stands to reason that parents want to make sure their student is getting a degree in a field that will support them after graduation.
Payscale’s College Salary Report can help you and your student when you are researching colleges. The report is based on a comprehensive database. In 2022, their rankings come from the alumni salary data of 3.5 million respondents, representing more than 4,000 colleges and universities across the U.S.
Many families are unrealistic about covering the cost of an expensive college education. Many students admitted that paying for the education at a more expensive university would put a financial burden on their families, but they were still willing to risk it based on their perceived value of that education.
“When three generations of a family collaborate to tackle college costs and fail, the results can be catastrophic. Credit profiles are destroyed, homes and retirements are put at risk, and families land in bankruptcy court. Even then, in most cases higher-education loans, which average more than $30,000 per bachelor’s degree recipient, can only be deferred in bankruptcy, not discharged.
What you’re seeing now in the student-loan area is not only the debtor, but the family of the debtor,” said Manhattan bankruptcy lawyer Dave Shaev. “Mom and Dad are usually the co-signers, and sometimes Grandma or Grandpa are having to dive into retirement funds and home equities to try to bail out a daughter or son with student loans, because the jobs they are getting do not allow them to keep up on the payments.”
Being realistic about student debt and earning potential after graduation is an important part of your college decision. Here are some tips to help make that decision:
Research the jobs that
involve your intended major. Don’t limit
yourself to the obvious. You might find a career path that you had not even
considered.
2. Investigate the
earning potential of the career
These figures can be
easily obtained through the Bureau of Labor Statistics projected earnings
charts. Be realistic. You won’t be paid at the top of the scale right after
graduation. Use the lowest percentage for your figures as a conservative
estimate.
3. Learn about loan repayment
If you are borrowing
money to attend college, don’t just assume you will make enough money to pay
back those loans. Research repayment amounts (and monthly payments) to
determine how much of your salary will go towards student
loans.
4. Consider that life is more than dollar signs
If you are making five figures and employed at a job you detest, the money won’t soothe your misery. Being financially secure is everyone’s goal, but sometimes working at a job you love is worth its weight in gold. A career as a teacher can be as rewarding as being a doctor. You know yourself better than anyone else—pursue your passion.
5. The highest priced
education is not always the best
A high-priced higher
education is not always worth the dividend it pays. Investigate the cost of
tuition and weigh that against your future earning potential. It is wise to
consider community college, investigate trade schools, evaluate state college
cost versus that of private universities, and even consider online accredited
learning.
That degree from a
so-called prestigious university might look
great on your wall; but is it worth cost? Be a wise consumer and don’t go into
debt on the promise of a five-figure salary. Study the statistics, put some
thought into the process, and make an informed decision.
