COST OF NOT GETTING ANY DEGREE, EITHER ASSOCIATES or BACHELORS AND THE PAY OFF OF GETTING THE DEGREE
Getting a degree, either two or four year, can pay off as much as triple in starting salaries of a first time job out of school than having NO degree or Technical training certification. Technical Certifications also show a vast increase in potential first time employment salary or wage earnings than simply a high school diploma.
Millennials in the US show that the US is one of the HIGHEST educated countries (by percentage of population) in the World, far exceeding many European nations, where there is no cost to going to college (the volume of population choosing or actually getting into college is far less per nation). The United States offers a tremendous volume of schools, programs, and opportunities for most who want to attend. Unlike many other countries, in which higher ed tuition is funded through taxes, admittance in a US to college is no where near as difficult, and the volume of people actually attending college and graduate schools in the US is in the top ten in the world, compared to those countries with free tuition.
The US offers an easier gateway into higher education than most all other countries in the World. The US offers higher ed to every sector of society, including those who are incarcerated, developmentally disabled, and anyone who has a desire to be retrained from one trade profession into another. The opportunities and options for anyone, pretty much, to go on to higher ed in the US are numerous. And the funding options are also as varied. We will run a series of funding for colleges and degrees this fall! Look for it! Getting accepted in higher education in the US is actually rather easy. And for those who are older, who need to work, or who have family obligations, there are even easier ways to get accepted into a degree program that bypass the tradition requirements of standardized testing, and other options for entrance. The US is one of the only countries in the world that encourage ALL people who have the desire to go, a way to go on for a degree, no matter age or stage of life!
And contrary to what many believe, the majority of Millennials are NOT swimming in student loan debt. There is a rise in student loan debt commensurate with the population rise, but on average the majority are not overly burdened by debt, of which the interest is tax deductible.There are many, who never completed degrees, however, who have defaulted on all their students loans, increasing debt to the Nation, in record numbers never seen before in the US.
The average student debt for a 4 year degree is almost 30K. The average cost, full freight of a 4 year degree, is 150K. This means that only 20% of the total cost, on average, is financed. This is not an outrageous percentage. Over the decades, the amount financed by most students in the US since the Baby Boomer generation, has been anywhere from 10-50%.
What about the balance? That is usually a combination of payments from parents, work-study, scholarships, and tuition reductions offered by colleges for those in need. What is even more telling is that the average starting salary range, depending on the location and degree, for a 4 year Bachelor’s is from 39-91K per year. So, the majority of Millennials are actually making more money right out of school than their student loan debt, and that debt’s interest is tax deductible, and can actually be paid over decades at rates far more favorable than market rates. Many people choose to prolong paying off their debt because the interest deduction and rate is so favorable. Many others, in fact the majority, pay off the entire balance within one decade of graduation. So, in essence, the graduating student with a job can pay off the debt and gain more income in pocket as the tax deduction can reduce their income tax obligation! This is often a huge plus for those wanting to save and invest in equities in order to garner enough for a down payment on a first home! The record of loan payments actually boost their FICO scores as well, another big plus in helping create an adult financial record to secure credit.
However, the reality in the US employment market of not having any further professional training or education past high school leaves the earning potential out of school very disparate. The truth about potential earnings without a degree is dismal. The majority of people in this category, by contract, do not have perhaps the debt, but also only have an average salary of 23-35K per year. And the ability to build a credit history and develop a good lending standing within the investment world is far more challenging.
So need help finding that perfect program for that perfect financing you can secure? Contact Us!