The return on investment from higher education is dismal and the future does not look bright. Indebted students entering an ever constricting job market is not the American dream, but it has become the American reality. This trend will continue and those who do not plan accordingly will pay the price with ever increasing debt and high opportunity costs.
Parents and their children need to understand and appreciate economic reality. We are entering a period of stagflation - the end of growth. With proper planning and execution of well honed plans, expansive personal debt can be curtailed. One simply need not enter the workplace with $30,000 in education debt, the average debt of the today's college student and up living in the basement of one's parental home.
The key to success is early entry into the workforce and streamlined, specific education customized for the job desired. You start at the bottom and work/learn your way up - the old apprentice model of thinking about the world. Enter the age of the micro degree, also known as technical education.
The days of a broad liberal arts education to expand the mind and broaden the student’s overall awareness of history, art and music are over. These lofty goals may still be achieved, but only after a more specific plan leads to fruitful employment with minimal, if any, debt.
The Micro Degree and Technical Training vs. Traditional Higher Education
Several online education platforms now offer the micro degree, a welcomed trend to replace the bloated Bachelor or Arts and Bachelor of Science degrees of yesteryear. Gone are the days when it made sense for a student to take general education classes in social science, English, math, and other areas before ever taking a core class in their major area of interest. There is a time and place for general education for the core purpose of exposure and personal development - that time is secondary school and high school, not college - not any more.
Lost Earnings and Lost Time Proving Employ-ability
Four years spent in college has a tremendous opportunity cost few students appreciate. Not only is the student paying for room, board and the cost of the college education, most are foregoing precious years of job experience and, lest we forget, salary.
Some will disagree with the assessment that a college student can be worse off after four years of education than before entering college. They will cite studies illustrating the great earning potential of college graduates versus mere high school graduates. Although true in the past, these conclusions are simply wrong today.
The studies upon which these old conclusions rely do not take into account the declining economy and overall trend of stagnation. In layman’s terms, there will be fewer jobs in four years than there are now and the competition for good paying jobs will increase with time.
Entering the workplace at the earliest opportunity and leveraging night classes or an online college for job specific education and training is the key to future success. Employers will seek persons with specific technical abilities, not broad educations inapplicable to maintain their bottom line.
Additionally, there is a second benefit to early entry into the job marketplace and that is proving one’s ability to be employed. Yes, there is an ever increasing portion of our society who are simply unemployable - incapable of being employed. They show up late, can’t get along with co-workers, or simply do not have the will to work. Such is the new reality and proving that one has the ability to be employed is in itself, an asset.
Get hired early, study as you work, and work your way up the company. That is the new path to success in today's economic climate.