The Lazy Blogger

Do you think that a College Degree will mean you'll earn more money than a person with just a High School Degree? Obviously most of would say yes. After all, that's what we've been told by University's and College's for years. I always heard that with a college degree I'd earn 1 million dollars more than if I just started working after High School. It's a no brain er then. Not so fast.

In a recent Forbes Magazine article called The Great College Hoax The Million dollar Myth was taken apart. You see the idea that you earn 1 million dollars more is based upon simple math. The average College grad earns $57,500 compared to the average high school alumni makes $31,600.Census figures show that college grads earn an average of $57,500 a year, which is 82% more than the $31,600 high school alumni make. To get the million dollar figure you just multiply the difference of 25,900 by 40 years. The problem is that it does not take into account the $47,500 that an average college grad has in debt. Or the $125,000 that the high school grad made during the 4 years of college.

Only 54 percent of students entering four-year colleges have a degree 6 years later. Keep in mind, that's a bachelors degree. What is considered a 4-year degree takes an average of 5 years.
So now we have 65% of those that graduated with student loan debt. Then there are those who didn't graduate, most of whom have student loans for which they never received anything! That helps the economy! We now have a big chunk of the young population walking around with a heavy burden of student loan debt. "But Bryan, it's low interest." Uh, no not 40% of it. Have you ever wondered why banks like Wells Fargo and Bank of America started getting into the business of student loans so quickly? It's because they hand out non-traditional loans. With interest rates that average around 15%! Plus, there is no regulation on a cap of the interest rate. One more thing, this isn't like any other debt. Oh no it's special. Why? Because you can't ever declare bankruptcy. Not on student loans.

I know what your thinking. "If people are dumb enough to go looking for non-traditional loans, they deserve that interest rate." First of all, these loans are being handed out at University financial aid offices. So an 18-24 year old is going to school and is being told that an education is worth the cost and at the same time is offering financial aid. Does an 18-24 year old really understand the cost of that loan over the next 20 years. Of course not! They've barely been alive that long.

So why am I going on about this? (if anyone is actually still reading this) President Obama said that his goal is to make sure every child goes to college. When I heard that I had a minor stroke. Here is the thing. There are smart people. There are handy people. There are nice people. Etc, etc. The point is that every person is not equal. One of my favorite quotes is attributed to Thomas Jefferson, although it is not verified, says what I feel. " There is nothing more unequal than the equal treatment of unequal people." What does it mean? To me it means that you don't give a blind man the same book as someone with sight. You give him a book in braille. I believe it's the same with people. To say that all children should go to college is equal treatment of unequal people.

I have an idea. Why does college take an average of 5 years? Does it really need to? I know that some jobs require a degree. There are certain skills that must be learned before one can work. Some examples would be Doctors, Nurses, Architects, Scientists, etc. But, do each of those degrees really need U.S. history? Or economics, english writing, ect. I'm not down playing studying these subjects. But remember, universities and colleges are a business. A business that does better with more students that stay longer. This is why they help give out the loans. This why they don't tell you about the real math of 1 million dollars. Why can't we have go to college for a year and learn to be a nurse and start working. Is a nurse a better nurse because they took economics? Is a plumber or construction worker not as important as a web designer? Why do we have to be made to feel ashamed if we don't have a college degree?