Last Saturday, we held our 4th annual Financial Fitness Fair for parents and their high school children. The day before, MSNBC reported that the unemployment rate for twenty-somethings for December was 11% as opposed to the national unemployment rate of 7.2% It seems that in a recession, experience in the job market is more appealing. http://www.msnbc.msn.com/id/28663645/
No one is going to dispute the value of a college education and certainly no parent will ever say they don't want their kids to go to college. Parents always want the best for their kids and we have always viewed a college education as their ticket to success. And then there are all of those studies that point to the income predictions between those adults with a college degree and those without.
But at what cost? Last Saturday, I presented a factoid that showed that in 1978 (presumably when today's parents of a 16 year old were 16 themselves) the average cost of private college tuition in NH was $4,570. With a Stafford federal student loan limit of $2,500 per year, that left a gap of $2,000. In 2008, the average cost of private college tuition in NH was $29,675. With a FFELP federal student loan limit of $5,500, the gap is over $24,000. Are we really surprised that parents are wondering how to pay for this or students are taking on tremendous debt to finance their education?
Has the value of that education increased 10 times over the last 30 years? Has it opened 10 times more doors for college graduates?
And when the new administration says it will make college more accessible for students, what does that mean? Does it mean the tuition cost will actually go down or does that mean more loan programs will made available so the debt cycle continues?
Investment portfolios are down anywhere from 10-30%, housing prices are projected to be down 23% - how about college tuition?
When are we going to have the discussion about the cost of a college education?
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Dan...couldn't agree with you more. I also believe a college education is extremely important, but is it really worth it if a graduate has to deal with $100K+ debt once they're out of school. Time to explore other lower cost options...community colleges, on-line degrees, living at home and commuting, getting a job and having your employer pick up the tab. Better yet, begin to see a decline in tuition costs as you suggest!!
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