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>>a mountain of debt right after graduation Average debt upon graduation is approx. $31K, less than the cost of a mid-grade car. I would not call that 'a moun

by ejb999 4y ago

>>a mountain of debt right after graduation Average debt upon graduation is approx. $31K, less than the cost of a mid-grade car. I would not call that 'a mountain', and unlike a car which will rapidly depreciate in a very short amount of time, getting a decent college degree will pay dividends throughout your life in increased earnings power. According to govt estimates, the average lifetime earnings difference between someone with just a high-school diploma, and someone with a college degree is - on average $550,000. A $550,000 improvement in lifetime earnings in exchange for $31K in debt, seems like one of the best investments you can make.

monsieurgaufre 4y ago
> A $550,000 improvement in lifetime earnings in exchange for $31K in debt, seems like one of the best investments you can make. Not when you're not even sure of being able to pay back those $31K+interests afterwards.
- ejb999 4y ago
  >>Not when you're not even sure of being able to pay back those $31K+interests afterwards. If you went to college for 4 years, and didn't improve you situation enough to afford a few hundred dollars a month in debt, then you chose poorly.
  - randomdata 4y ago
    At the same time, if college is able to improve your situation, you have already chosen poorly. Given that the typical college grad is well into their 20s, often older and almost never younger, that is incredibly late in life to be just starting to think about improving one's situation. Smart money has it figured out long before that time. The time value of money does not favour those who delay.
- ryan93 4y ago
  Thats like 200-250 a month. Unless you get a minimum wage job you are fine.
randomdata 4y ago
> and unlike a car which will rapidly depreciate in a very short amount of time If you think a car rapidly depreciates, try reselling your degree. You might be in for a shock. Winner: The car. > getting a decent college degree will pay dividends throughout your life in increased earnings power. The data says otherwise. Wages have held stagnant through the rise of post-secondary schooling. You can't both have increased earning power and stagnant earning power. The earning power of not being limited to a physically close job that a car affords did show some upward wage movement, however. There was clear wage growth seen during the rise of the automobile. Winner: The car. > According to govt estimates, the average lifetime earnings difference between someone with just a high-school diploma, and someone with a college degree is - on average $550,000. Ouch. The opportunity cost of a four year degree is, on average, more than a million dollars. That's a nasty haircut. And that's ignoring that your methodology is flawed. We know that different people are different. Of course the person with down syndrome, who just scraped by in high school and struggles in the workplace for the same reason, is going to have lower earning potential than the person who breezed through their studies at Stanford. These people are not comparable. Which is why you actually want to compare people over time. Using a time vector maintains the spectrum of people from high functioning to low functioning. Over time, as more and more have attained degrees, incomes have held stagnant. There has actually been no economic benefit gained.
- ejb999 4y ago
  >>try reselling your degree. Why would you sell your degree? >>The data says otherwise No it doesn't - stop making stuff up but it sounds like in your case, you are not well suited for college - you should buy a car instead. Uber is always looking for drivers.
  - randomdata 4y ago
    > Why would you sell your degree? The same reason you would sell your car: To try and recoup the cost that you sunk into it, to repurpose and hopefully find productive use for the capital. The trouble you will run into with the degree, with it quickly depreciating to having no remaining value as soon as you drive it off the lot, is that nobody will want to buy it from you. The car will retain at least some value with its much longer depreciation cycle and ultimately scrap value.

by ejb999 4y ago

monsieurgaufre 4y ago

> A $550,000 improvement in lifetime earnings in exchange for $31K in debt, seems like one of the best investments you can make. Not when you're not even sure of being able to pay back those $31K+interests afterwards.

ejb999 4y ago
>>Not when you're not even sure of being able to pay back those $31K+interests afterwards. If you went to college for 4 years, and didn't improve you situation enough to afford a few hundred dollars a month in debt, then you chose poorly.
- randomdata 4y ago
  At the same time, if college is able to improve your situation, you have already chosen poorly. Given that the typical college grad is well into their 20s, often older and almost never younger, that is incredibly late in life to be just starting to think about improving one's situation. Smart money has it figured out long before that time. The time value of money does not favour those who delay.
ryan93 4y ago
Thats like 200-250 a month. Unless you get a minimum wage job you are fine.

randomdata 4y ago

> and unlike a car which will rapidly depreciate in a very short amount of time If you think a car rapidly depreciates, try reselling your degree. You might be in for a shock. Winner: The car. > getting a decent college degree will pay dividends throughout your life in increased earnings power. The data says otherwise. Wages have held stagnant through the rise of post-secondary schooling. You can't both have increased earning power and stagnant earning power. The earning power of not being limited to a physically close job that a car affords did show some upward wage movement, however. There was clear wage growth seen during the rise of the automobile. Winner: The car. > According to govt estimates, the average lifetime earnings difference between someone with just a high-school diploma, and someone with a college degree is - on average $550,000. Ouch. The opportunity cost of a four year degree is, on average, more than a million dollars. That's a nasty haircut. And that's ignoring that your methodology is flawed. We know that different people are different. Of course the person with down syndrome, who just scraped by in high school and struggles in the workplace for the same reason, is going to have lower earning potential than the person who breezed through their studies at Stanford. These people are not comparable. Which is why you actually want to compare people over time. Using a time vector maintains the spectrum of people from high functioning to low functioning. Over time, as more and more have attained degrees, incomes have held stagnant. There has actually been no economic benefit gained.

ejb999 4y ago
>>try reselling your degree. Why would you sell your degree? >>The data says otherwise No it doesn't - stop making stuff up but it sounds like in your case, you are not well suited for college - you should buy a car instead. Uber is always looking for drivers.
- randomdata 4y ago
  > Why would you sell your degree? The same reason you would sell your car: To try and recoup the cost that you sunk into it, to repurpose and hopefully find productive use for the capital. The trouble you will run into with the degree, with it quickly depreciating to having no remaining value as soon as you drive it off the lot, is that nobody will want to buy it from you. The car will retain at least some value with its much longer depreciation cycle and ultimately scrap value.