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Sure there's a non-monetary component to the value of a college education. But if the monetary component is so low that you'll be paying off your college loans

by GVIrish 11y ago

Sure there's a non-monetary component to the value of a college education. But if the monetary component is so low that you'll be paying off your college loans until you're retirement age, maybe that means you need to re-evaluate your choices and priorities. More students need to start choosing the cheaper public institution for that degree because that private school is not providing enough extra value to offset the enormous cost.

skewart 11y ago
Why? It's a luxury purchase like any other. There's nothing wrong with that. As long as people know what theyre signing up for let them do their thing! If I get a loan to buy a Ferrari I've made a very bad decision from a purely financial perspective. But if that car brings me enjoyment and makes my life more fulfilling then I'm perfectly happy. Of course, if the Ferrari dealer lied to me and said that the car's value would go up by 40% as soon as I drove it off the lot then thats a different story. It is probably true that ple ty of college students don't really know what they're really signing up for. And incredibly misleading statistics about the income of people who went to college vs those who didnt certainly don't help. Pretty much every art history and anthropology major that I've known has been acutely aware that their degree isn't really increasing their earning potential much and are perfectly okay with that.
- humanrebar 11y ago
  > Why? It's a luxury purchase like any other. There's nothing wrong with that. Because it's heavily subsidized and regulated. If it these were unsubsidized private transactions subject to the same bankruptcy laws as any other, I'd agree with your sentiment.
  - skewart 11y ago
    Fair enough. That's a good point. At the same time though, we do subsidize a lot of potentially dangerous, and arguably luxurious amenities because a critical mass of people enjoyusing them responsibly. National parks, highways, even medical procedures are all far from safe if you don't understand the risks involved in what you're doing. Most people do understand those risks and safely use these resources, just like most literature majors understand the risks involved in racking up debt to study literature. Of course, as tuition goes up - and its gone up a lot even since I was in college not that long ago - the relative risk goes up. Maybe there is a lag in really appreciating the magnitude of that risk and we should be more careful.
- GVIrish 11y ago
  > Why? It's a luxury purchase like any other. There's nothing wrong with that. As long as people know what theyre signing up for let them do their thing! If that's what people view it as, and they're ok with how much debt they're going to incur and all of the stipulations that come with that debt, then more power to them. Can't argue with that. But I think many people are not really doing that value calculation thoroughly or at all. There are a lot of students who sign up for college because that's what they "should" do and they don't necessarily properly evaluate whether the cost is worth it in lifetime earning potential or personal fulfillment. It's kind of like the housing market before the bubble. Most Americans believed that they "should" own a house and believed that real estate is always a good investment. We all see how that turned out.

by GVIrish 11y ago

skewart 11y ago

Why? It's a luxury purchase like any other. There's nothing wrong with that. As long as people know what theyre signing up for let them do their thing! If I get a loan to buy a Ferrari I've made a very bad decision from a purely financial perspective. But if that car brings me enjoyment and makes my life more fulfilling then I'm perfectly happy. Of course, if the Ferrari dealer lied to me and said that the car's value would go up by 40% as soon as I drove it off the lot then thats a different story. It is probably true that ple ty of college students don't really know what they're really signing up for. And incredibly misleading statistics about the income of people who went to college vs those who didnt certainly don't help. Pretty much every art history and anthropology major that I've known has been acutely aware that their degree isn't really increasing their earning potential much and are perfectly okay with that.

humanrebar 11y ago
> Why? It's a luxury purchase like any other. There's nothing wrong with that. Because it's heavily subsidized and regulated. If it these were unsubsidized private transactions subject to the same bankruptcy laws as any other, I'd agree with your sentiment.
- skewart 11y ago
  Fair enough. That's a good point. At the same time though, we do subsidize a lot of potentially dangerous, and arguably luxurious amenities because a critical mass of people enjoyusing them responsibly. National parks, highways, even medical procedures are all far from safe if you don't understand the risks involved in what you're doing. Most people do understand those risks and safely use these resources, just like most literature majors understand the risks involved in racking up debt to study literature. Of course, as tuition goes up - and its gone up a lot even since I was in college not that long ago - the relative risk goes up. Maybe there is a lag in really appreciating the magnitude of that risk and we should be more careful.
GVIrish 11y ago
> Why? It's a luxury purchase like any other. There's nothing wrong with that. As long as people know what theyre signing up for let them do their thing! If that's what people view it as, and they're ok with how much debt they're going to incur and all of the stipulations that come with that debt, then more power to them. Can't argue with that. But I think many people are not really doing that value calculation thoroughly or at all. There are a lot of students who sign up for college because that's what they "should" do and they don't necessarily properly evaluate whether the cost is worth it in lifetime earning potential or personal fulfillment. It's kind of like the housing market before the bubble. Most Americans believed that they "should" own a house and believed that real estate is always a good investment. We all see how that turned out.