Whether you are a spawn of the 1% or a child living below the poverty line, getting into college is a shared goal that spans every socioeconomic level in the U.S. Why? Because if you go to college, you'll graduate and land a good job and have a house with a white picket fence and be able to provide for your spouse and 2.5 kids. That notion has been ingrained in all of us since we were first able to comprehend language. While that may have been true for our parents and maybe even our older siblings, for Gen Y-ers and Millenials- brace yourself- it's bogus.
When our parents were graduating high school, getting into college was less competitive, attending it was more affordable, and there were a plethora of jobs waiting for them once they graduated. My, how things have changed. The self-perpetuated myth that everyone needs to go to college to have even a chance of success in this world has made for plummeting acceptance rates, rising tuition costs (classic supply and demand) and a nearly impenetrable job market.
In 1964, just a few years before my parents began college, 15% of California high school graduates alone were invited to attend UC Berkeley- and they admitted everyone who met the academic requirements. In 2012, two years after I graduated, the combined national and international acceptance rate was 18%. In the 1960s, Berkeley's yearly tuition cost less than $600. For a California resident in 2012, yearly tuition (just tuition) was $13,000. Non-residents paid close to $22,000/year. I'm no mathematician or economist, but I'd say that more than accounts for inflation.
Those who are not lucky enough to have parents able to pay for their tuition or earn scholarships need to take out student loans- and that's nearly 60% of us, according to American Student Assistance. With interest rates just below 10%, by the time my peers graduated college a good number of them were close to $100K in debt. The current total student loan debt in the U.S. is close to $1,000,000,000,000 (never seen a number that high? It's trillion).
But that's OK- now that you've graduated and have a college degree, you'll be able to get a job and make lots of money to pay it off lickity-split, right? WRONG.
Unless you landed a sweet gig in engineering, computer science or consulting, you'll either a) still be working toward some specialized field like law or medicine where you'll need to spend five more years and another $100K+ or b) have some humanities degree that will get you three unpaid internships and a job at Hot Dog on a Stick, with your debt building and building thanks to that 8% interest rate. Debt increases, credit worsens. Grab a shovel, it's going to be a long dig.
I'm not going to bore you with any more stats, but that's where the majority of Gen Y-ers and Millenials stand. The numbers don't lie and we all have plenty of qualitative data that's unfortunately very close to home.
So why encourage your kids to go to college? Unless they are extremely bright in a field that will pay very well in the long run, or you as a parent can afford to send them, or they have a talent that will be awarded a scholarship- why would you set your child up for lifelong financial failure and woe?
Maybe these alternatives make more sense:
- Learn a trade. Apprentice with an electrician, plumber or contractor right out of high school and soon you'll be making a decent $40K-$60K salary. Without college debt, you can save a good portion of that and who knows... maybe go to college someday when you can pay for it.
- Join the military. It's always a gamble, but right now we are in a time of relative peace and enlisting in the military for a few years will give you great life skills, look dynamite on your resume, and give you money to pay for college via your GI Bill.
I'm not saying that no one should go to college, I'm just saying college isn't for everyone. This myth that having a college degree will automatically make you successful is alive and well in our society and it's directly contributing to the financial ailment of America.
