Is a College Education Worth It?
- UpdatedSep 25, 2024
- College is expensive, so consider the return on investment carefully.
- Research the desired degree and expected salary before committing to costly tuition.
- Sometimes a trade school provides more bang for your buck.
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If you’re a parent of teen, you’re probablypainfully aware of how expensive the cost of college has become. Despite thefact that the average college graduate earns over $30,000 more a year than anaverage worker with only a high school diploma, more and more parents areasking themselves if a college education (and all the debt that can come withit), is even worth it.
Every person and situation is unique, so thereis no one hard “yes” or “no” answer to that question. You have to figure outthe right answer together.
Here are some things to talk about with your teen to understand if college is worth it for them:
Your Child’s Career Path
If your child knows what type of career they want to pursue, do some research and find out whether a degree is required or simply a nice-to-have. If they want to be a nurse, for example, a degree is a must. However, if their goal is to work in web design or development, a degree may not be a necessity.
The Importance of the Institution
Some colleges are more prestigious than others and come with a hefty price tag as a result. If you determine that your child’s career path requires a degree, you may want to talk to some professionals in the industry. Ask them if the quality of the institution matters or if an appropriate degree from any college will suffice.
Certifications or Trade Schools
Sometimes, a trade school or certification is a wiser choice than college. For instance, if your child wants to become a welder, they probably don’t have to go to college. In fact, they may be better off enrolling in a trade school and gaining valuable hands-on experience that allows them to enter the workforce faster.
Whether Your Child Has a Career in Mind
While some children know exactly what they want to be when they grow up, many have no idea. If your child has made it clear they don’t have a career path in mind, investing in a general purpose degree may not be worth it. It may be more beneficial for them to gain a few years of work experience. Work experience can give them some clarity and allow them to save money for college.
Your Child’s Motivation and Responsibility
One third of students drop out of college before they begin their sophomore year. This is mainly because some are simply not ready for college immediately after they graduate from high school. College success depends on motivation and responsibility, so if you don’t believe your child has high levels of these traits, you may want to put the brakes on college for a bit.
Your Ability to Pay for More Than Just Tuition
Unfortunately, college comes with other costs than tuition. To attendcollege, your child will likely have living expenses and miscellaneous expensesfor things like books and supplies. Vanderbilt University, for example, charges$50,800 for tuition per year. But in addition, students have to pay thefollowing:
Residence Hall: $11,044
Meals: $5,866
Books and Supplies: $1,294
Student Activities and Recreation Fees: $1,270
Personal Expenses: $2,874
All of these other expenses add up to $22,348, making the grand total to attend Vanderbilt as a full-time undergraduate student $73,148—per year.
Remember that the goal is to get just-right education: Not too much, not too little. Figure out what is really important, don’t base decisions on what everyone else is doing (or not doing). Your goal should be to create a plan that will enable them to get the level of education they need at a price you can both afford without being saddled with life-long debt.
Debt relief by the numbers
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during August 2024. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
Credit card tradelines and debt relief
Ever wondered how many credit card accounts people have before seeking debt relief?
In August 2024, people seeking debt relief had some interesting trends in their credit card tradelines:
The average number of open tradelines was 14.
The average number of total tradelines was 24.
The average number of credit card tradelines was 7.
The average balance of credit card tradelines was $15,681.
Having many credit card accounts can complicate financial management. Especially when balances are high. If you’re feeling overwhelmed by the number of credit cards and the debt on them, know that you’re not alone. Seeking help can simplify your finances and put you on the path to recovery.
Student loan debt – average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average student debt for those with a balance was $46,980. The percentage of families with student debt was 22%. (Note: It used 2022 data).
Student loan debt among those seeking debt relief is prevalent. In August 2024, 24% of the debt relief seekers had student debt. The average student debt balance (for those with student debt) was 50087.
Here is a quick look at the top five states by average student debt balance.
State | Percent with student loans | Average Balance for those with student loans | Average monthly payment |
---|---|---|---|
Washington DC | 29 | $85,809 | $208 |
Mississipi | 29 | $58,265 | $181 |
Georgia | 31 | $56,074 | $145 |
New Jersey | 29 | $54,691 | $197 |
Maryland | 26 | $54,410 | $124 |
The statistics are based on all debt relief seekers with a student loan balance over $0.
Student debt is an important part of many households' financial picture. When you examine your finances, consider your total debt and your monthly payments.
Regain Financial Freedom
Seeking debt relief can be the first step toward financial freedom. Are you struggling with debt? Explore options for debt relief to regain control of your finances. It doesn't matter how old you are or what your FICO score or credit utilization is. Take the first step towards a brighter financial future today.
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