College Decisions and Considerations
Taylor Rajchel
Students graduating from high school have big decisions to make in their lives. Do I go to college? Do I get a job right away? What do I want to make of myself? What colleges can I afford? Questions like these only have a small amount of time to be answered before facing a huge decision that can impact one’s life. However, the thing that can change these students’ choices is the cost of college.
As shown in the chart above, over the years college has become more expensive than the average household’s income. Because of this an income effect takes place where the student and their family make a decision to go to college for a shorter amount of the time, for example, maybe a 2-year program instead of a 4-year. Another option is the substitution effect where instead of going to the dream college that the student worked so hard to get into, they decide to go to a different, cheaper, more affordable college to shrink the amount of debt they will gain after graduating from college.
When making these decisions the student wants to make sure that their marginal benefit will outweigh the marginal cost so they know spending so much money on college will benefit them in the end and not just create debt. They should make sure to choose a college that will help them improve the skills they need to get a job as soon as possible once college is over.
It is also important to examine the opportunity cost from one college to another to know just how much is being given up at each college. Whether that is the opportunity for the type of major/minor or the opportunity to be close or far away from home.
Another crucial factor is thinking ahead after college. Graduates will be stuck with loads of debt and may not be handed a job right after graduation to start paying it off. As shown in the graph above, some may graduate and end up working minimum wage jobs like at Starbucks or McDonalds because the supply of jobs for their field of work may be really small while the demand to work in that certain field may be really high. Make sure to do enough activities to load a resume with things that make one person stand out from another.
One thing that can really help out with one’s resume and finding a job after college are internships. Make sure to think about applying for and working internships towards the end of college as it will provide not only more experience with the job that is at interest but also gives an upper hand against the competition when it comes to competing for a job. In the chart below it shows that in no matter what industry of work someone is interested in, internships will increase one’s chances of finding a job in that field of work and also make a person more appealing to an employer that is looking for employees.
When heading off to college take into consideration all of these factors because college is really expensive and the amount of debt a student has after graduation depends on their decisions when applying and enrolling into college. Make sure to choose the best college that will give you the best benefit in the interest of the future.
Vedder, Richard, and Matthew Denhart. "Why Does College Cost so Much? - CNN.com." CNN. Cable News Network, 2 Dec. 2011. Web. 1 Mar. 2015. <http://www.cnn.com/2011/12/02/opinion/vedder-college-costs/>.
"Is College worth It?" The Economist. The Economist Newspaper, 5 Apr. 2014. Web. 1 Mar. 2015. <http://www.economist.com/news/united-states/21600131-too-many-degrees-are-waste-money-return-higher-education-would-be-much-better>.
McNutt, Mark. "Why Does College Cost so Much?" US News. U.S.News & World Report, 22 Sept. 2014. Web. 1 Mar. 2015. <http://www.usnews.com/news/college-of-tomorrow/articles/2014/09/22/why-college-costs-so-much-overspending-on-faculty-amenities>.
Rodkin, Jonathan. "To Improve Your Chance of Getting a Job, Don't Skip Your College Internship." Bloomberg.com. Bloomberg, 15 Aug. 2014. Web. 1 Mar. 2015. <http://www.bloomberg.com/bw/articles/2014-08-15/skipped-your-college-internship-youre-far-less-likely-to-get-a-job-in-business>.
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ReplyDeleteAs a senior who is looking ahead to college in the next few months, the amount of debt I will likely be facing is definitely at the forefront of my mind. While I have not officially committed to a college yet, I have absolutely been weighing the costs of attending certain colleges with the benefits that each could provide me. As you stated, the opportunity cost of attending one college would mean not being able to attend another, and ultimately, our education should be about what can make us the most marketable in the end. Demand for certain fields of work may be lower than others, and that is something to keep in mind as well. Overall, a lot of interesting data and statistics were brought up here, and it is definitely relevant for many of us.
ReplyDeleteYou made good a good point by saying that the cost of college effects the decision one makes when deciding where to go. A person's top college may be too pricey and will leave them with too much debt, so they pick a cheaper school that might not supply the best education. This will effect the job they get because businesses look for candidates that have a good educational background, so your better education could get you a better job. In this case, the benefit could outweigh the cost because in the end, you'll be making more money and be able to pay off your debt from the more expensive school with a better education.
ReplyDeleteCollege has gotten more and more expensive like you said and showed with your graph, so that makes it a lot harder to get into your dream college. In order to be able to afford expensive college payments, it is very likely that you would have to work long hours at a job while juggling a demanding education. It’s crazy how expensive college is getting, and I thought it was interesting how you compared its cost to the average family’s income.
ReplyDeleteAs time goes it gets harder and harder to even get into the college you want. Working hard in high school to get to the college you want is brutal enough, but having to find out that once you've been accepted to that college you can't attend because of financial disabilities is harder. So going right into the job force in some cases would be more efficient than going to college. If you went to college got a degree and still had to work at McDonalds would really be a bummer.
ReplyDeleteThis was a great topic to talk about because almost every single Junior, and Senior, is thinking about college decisions. Often, we don't take into consideration the opportunity cost of going to very expensive school or out of state school. It's hard to think about all the benefits and costs because there are so many, but it's good to break it down like you did. Also, I think it's ridiculous how expansive college is getting, and it's difficult to work a job in order to pay for college, while trying to be involved in school and build a solid resume.
ReplyDeleteThis is an interesting topic because, especially at Pewaukee, almost everyone just assumes that the top colleges are the next best step when really they don't think about the marginal cost and benefits. Maybe getting a job now and making some money now without student loans would actually benefit them more than actually going to college, but that's just not a considered option.
ReplyDeleteThis was interesting to read because, everyone is facing this problem: what to do next? I thought your piece offered interesting insight on what to do to increase your chances of getting a job after college. I also liked how you talked about opportunity cost in choosing college: is one school really worth thousands of dollars in debt?
ReplyDeleteIt is true that people are choosing not to go to college because of the price and some people are having to get minimum wage jobs because they can't find one with their degree. But you never mentioned specifically that there are degrees for certain fields that are useless and have no jobs.
ReplyDeleteI like how you picked a topic that we can all relate to and it really breaks down the steps of our college decision process. As you stated above, it's important to look at the marginal cost and benefit. However, I do believe that it is rare to see college graduates working at a minimum wage job like McDonalds. I think it's unlikely to end up working a minimum wage job if one did get a college level education and graduated with a major. If one finds their skill and works hard enough, I believe the money will follow.
ReplyDeleteIt seems like there's two paths you can take here in America.
ReplyDelete1. Don't go to college. You will probably not get a job that pays very well, and you may end up in the middle class at best.
2. Go to college, get thrown into the increasingly tight job market, and pay off student loans for the rest of your life.
Unless your family is rich enough to pay for college, you may never live as affluently as you want. It might seem crazy, but why can't we have free public universities, like several Scandinavian countries have?
I loved how you picked a topic many high school students can relate to. Your piece gave good advice on to do more and get out there so you'll stand out when attempting to find a job after college. Also, I like how you pointed out that students can avoid so much debt by having other colleges in mind. An individual's top college may be too pricey therefore it's best to have others.Your visuals were helpful as well, especially the one that illustrated the cost of a four year college education. It's amazing how much the cost of college has increased since the 1900's.
ReplyDeleteI could really relate to this topic with college coming up in the near future for all of us. I agree with you I think that it takes a lot of thought to make sure that we are really choosing the right place for us. It will take a lot of thought and mapping of the prices to make sure we make the right choice. I think that its really important to not jump right into debt with the student loans because, otherwise we will be stuck paying them off for a large time of our life.
ReplyDeleteWell, from my perspective, college is extremely expensive, but it should have little to no impact on your decision depending on how badly you've wanted to attend it. There could always be the the student loans and scholarship area to look into. Sure you would have a debt to pay, but you can't let anything get in your way of a great experience.
ReplyDeleteMany people do stress about college. Like this blog post stated its based on money. For many people its deciding if college is an elastic or inelastic good. For many people like myself it is an inelastic good because it provides education for the future, allows you to get a job, and has many opportunities for a student to get involved in life on their own. A lot of other people also say that this is an elastic good because it only lasts for 4 years and there are many substitutes for one college. Plus now a days people can get some jobs with just a high school diploma. This is what people have to really decide. If they are willing to pay anything no matter what, making it an inelastic good. While going with other options or not going at all making it an elastic good. Its their choice.
ReplyDeleteI think this is a great topic for the time being that most of us upperclassmen are facing. We all are so concerned about getting good grades in school and are stressing about our ACT scores, and when it all comes down to it, we might not even get to go to the college of our choice because of how expensive college is these days. It's crazy seeing the change of the average price of college over time, in that it just continues to increase. Everyone wants to get into the college that they really love, but in some cases, it's unfortunately out of the question. Also, it's hard for us to think about the amount of debt we're going to be in after our four years of undergraduate school. Considering some of us want to go into graduate school means only more and more money being added on to our debt. Paying that off will take years, also because it's not like every paycheck we get from our place of work will go directly towards paying off our debt, we have to put it towards food, housing, etc.
ReplyDeleteIt's good to know other options for college, but you should have talked more about scholarships and things that can help bring the cost of college down. We all know that it isn't extremely likely for everyone to get a ton of money from scholarships but everything helps even if it isn't 10,000 dollars.
ReplyDeleteIt is quite interesting, just how many college grads are not finding jobs straight out of college. It all depends on the major and well.. how hard the grad is trying. If you have a degree in a high demand field (computer science, engineering, etc) the jobs exist. It's annoying though to see so many grads. Too many people are graduating, and the requirements for entry level positions keep getting higher and higher. It is best to get a degree or enter the trade industry at this day in age however.
ReplyDeleteI like the topic you chose. It is something many people can relate to because college is approaching quickly. You effectively discussed the effect cost has on college choice, which is something many students have to consider. You also included a lot of interesting charts and statistics related to the subject, and you provided useful information about other things that could help, such as applying for internships. I agree with what you said; many students must debate whether they should attend the college they want or attend a college that is cheaper, so this is a big, important decision. However, some students might not want to go to college at all. While this would save them money initially because they wouldn't need to pay any college expenses, it would most likely harm them in the future because they would have difficulty finding jobs that could support them efficiently without a college degree.
ReplyDeleteTaylor! Good job on this article, it was very professional and very well written. It is very interesting topic that you discussed. I like how you brought up the opportunity cost of going to college or not going. Is it beneficial to go to college, even if you will be in debt for possibly the rest of your life? With this, you have to apply marginal analysis to see if the marginal benefit exceeds the marginal cost. I like how you told the readers tips in order to succeed with the college experience. I think going to college definitely exceeds the marginal cost and will benefit you in the future.
ReplyDeleteFor many of the seniors college is one of those scary steps in life. When people look at the cost of college many people deviate towards the less expensive, but when everyone gets out of college there is no doubt that every student has a debt. I personally got a huge scholarship from Carroll and admitted straight into their nursing program. It is also what the colleges give us that lures students in, I did get less scholarship money from other colleges. But personally I was worried about the debt and the fact that was expensive. I chose the school with the least debt and where I was getting the most money. It all comes into to play when thinking of college
ReplyDeleteInternships are the key for getting future jobs. Not only are you getting really work experience in that said job, but you are also getting the feel of how your future job works. Many people may think a job has a certain feel to it, but when they actually get a job in the career it may feel completely different. Yes college is a good choice to farther your education, but you can get more than just an improved education. Connections and job experience are even more benefits that can be achieved through college.
ReplyDeletePersonally, I have to pay for everything that I want lately, and I even have to pay whatever college I plan to attend. With all of these expenses, I have learned how to save any income that I earn with the job I currently hold. Going into college will begin the debt to any student in their lives, and it will only continue to increase. Scholarships however, help the money load and debt that you will be doing. Personally, I do not have any scholarships to any schools, so therefore I will have to pay more money to be able to attend the college. I know numerous of students, even in this Pewaukee school, are questioning on whether and where to go to college. It is an important decision, and I like how you wrote about this certain topic.
ReplyDeleteHow ironic that we had the army recruiters come in today and talk about the cost of college. Being a senior who is enrolled in a 4 year university, college is expensive. It’s scary for me to think that I will be at least $40,000 in debt after four years and then wish to pursue a masters in my field after the normal four years. It’s also stressful knowing that when I graduate there might not be a job that can pay the hefty amount of debt I will be carrying. However, not going to college, at least for me, is not an option. Looking at my mom, someone who didn't go to college, look for a job and have to explain that she does not have a degree it sets her apart from others. Now a days in order to get a good job that pays well you need a college degree. Even though college costs a lot, I feel that it’s a key asset people need to be successful in today's workforce.
ReplyDeleteResponse: Being a senior, I have done a lot of thinking about this topic. It saddens me that the cost of college is so ridiculously expensive on top of it not guaranteeing a quality job in the future. For some, it take ten to fifteen years to pay off all college debt. What is even more unfortunate, is the extreme pressure one is put through to go to college. Those who don’t attend the most prestigious are looked down on by society; thought of as less than those who can afford tuition. Schools usually don’t speak of the options of community & technical colleges, but instead focus more on the big, highly expensive colleges in the area.
ReplyDeleteResponse: Being a senior, I have done a lot of thinking about this topic. It saddens me that the cost of college is so ridiculously expensive on top of it not guaranteeing a quality job in the future. For some, it take ten to fifteen years to pay off all college debt. What is even more unfortunate, is the extreme pressure one is put through to go to college. Those who don’t attend the most prestigious are looked down on by society; thought of as less than those who can afford tuition. Schools usually don’t speak of the options of community & technical colleges, but instead focus more on the big, highly expensive colleges in the area.
ReplyDeleteThis was a good topic choice, because as juniors and seniors looking ahead to college, I think cost is one of the factors we try to ignore. We focus on what we want to major in and what schools are the best for that major, when in reality we should pay more attention to cost. As you said, the cost of college is going to affect where you go. A school may offer the best program, but may leave you in a lot of debt. In the end though, picking a better school will allow you to get a better job, and pay of your debt faster.
ReplyDeleteThis was a good topic choice, because as juniors and seniors looking ahead to college, I think cost is one of the factors we try to ignore. We focus on what we want to major in and what schools are the best for that major, when in reality we should pay more attention to cost. As you said, the cost of college is going to affect where you go. A school may offer the best program, but may leave you in a lot of debt. In the end though, picking a better school will allow you to get a better job, and pay of your debt faster.
ReplyDeleteWonderful stuff, Thank you.
ReplyDelete