College Is Not For Everyone

Students set to protest student loan debt


I am sick and tired of this nonsensical protest and debate over student debt and here is why.


Students are going to college of their own free will knowing the cost and knowing they are borrowing at lower than ever interest rates to pay for it.  They also know the job market is horrible, despite what President Obama says about the economy and job creation under his administration.


For decades every politician in Washington DC has told every teenager in America to go to college, get a good education and find a good job.  Consequently, more students than ever are entering college, and avoiding trade schools and community colleges.  Colleges are booming with students.  Enrollment is up all over the country.


If any of these students are enrolled in Econ 101 they'd be learning about the cost curve, supply and demand.  When demand goes up, price go up, until supply catches up, then price stabilizes.  When demand goes down and supply is up, prices drop.  As more students enroll at State U, costs go up.  Colleges meanwhile, are spending more money to increase capacity, and attract even more students.  Since the interest rate is low,  money is cheap.  As schools build more classrooms, dormitories and athletic complexes, the cost of higher education goes up and up. 


Now compound that activity with a lower than expected job market, and more students are entering schools and staying for post graduate courses than ever.  More students, more cost, fewer jobs.  People in the job market are not getting out as quickly either, and delaying retirement as cost of living increases and retirement savings are not quite what they hoped for.


It s a cycle that leads to higher costs.  What is the solution you ask?


Drop out of school or delay going to college if you're not there yet.  Check out community colleges or trade schools.  Avoid the typical four year college.  If this were to happen broadly, many schools would be forced to slow down the rate of building and lower costs.


There are also many trade jobs available to those willing to work and get their hands dirty.  Many trade jobs offer good salaries or wages, plus benefits.


Another thing people may not realize is that as more and more college graduates can't find full time employment in their chosen field of study, the value of a diploma decreases also.  More prospective employees means lower wages and salaries, not higher.


Stop expecting everyone else to pay for a college education that means less every year that we repeat hitting our heads agains the campus gates.