Three quarters of the lowest-income University of California students needed to take out loans, according to a 2015 PBS News Hour report.
This is despite the state’s effort to accommodate its poorest students, and make a college education more accessible. Student loans continue to grow nationally, as college costs continue to spiral out of control.
Annual tuition at a public college will be $44,047 in 2030, according to U.S News and World Report. This puts the cost of a four-year education at $176,188 – without considering the increases that occur over the time a student is in school.
Colleges and universities continue to charge more based on the availability of financial aid. But what happens if that financial aid is no longer readily available? Is this a sustainable system moving into the future? Or is this a bubble ready to burst?
The Larger Impact
The phenomenon of student loan debt isn’t brand new. Today’s working adults were routinely strapped with debt upon graduation. That’s not surprising. What might become alarming is the rising cost of tuition, and the amount of correlating debt.
When student loan debt increases, it takes a toll on both families and the larger economy. There are fewer mortgages, fewer cars, and fewer products that aren’t necessities.
The U.S will also be at increased risk of losing academic talent. The number of people who are smart and talented enough, but can’t afford college, will only rise. College is at risk of becoming a luxury only the rich can afford – despite efforts such as California’s to make a college education more attainable.
People of an old enough generation viewed college as only one of many options following high school. There were also an abundance of manufacturing or trades opportunities available. We may return to something similar in the future, with an economy built around the jobs that don’t require a degree.
Who is College Good For?
If you want to be a doctor, lawyer, teacher or nurse, you probably need college. If you want a career that requires an advanced degree and licensing, then college is for you.
For nearly everyone else, it’s likely a wasted investment. There are other ways—more affordable ways—to receive an education and meet your career goals. College will no longer be a practical answer for those looking to figure out what they want to do on the fly.
It used to be that if you wanted access to the information in a Yale course on macroeconomics, you had better study hard, ace your entrance exams, and come up with a solid plan to pay that tuition. Not any longer. Chances are, the same information you seek (possibly even the same lectures) could be available somewhere online.
Information used to be scarce. Libraries and universities used to be the only places for access to premium information. Even self-education cost a lot of money. Those Rosetta Stone packages for learning a language cost hundreds of dollars.
Now there are apps that will teach you a language for free. Textbooks are more readily available. Our math teachers were concerned about carrying calculators around in our pockets. With our cell phones, we have something far more compact and far more powerful than an encyclopedia.
You can learn how to do nearly anything online.
Employers Want Experience
In most industries, an employer may not look that heavily at the degree, anyway. They’re going to be more interested in actual experience than theoretical knowledge. The experience shows you can handle the situation.
There are always creative pathways into your field. The key will be to keep creating and find alternative ways to build up experience. People can act on their idea without waiting for outside validation. This puts you in more command of your career, without necessarily needing to drop hundreds of thousands of dollars on your education.
Don’t Fret
As the parent of a toddler, I understand what looking at the projected costs of college feels like. While college is still an important option for the students of 2030, it’s not the only option. There are more ways to learn and build a successful career.
It’s also a looming question mark as to whether the college and student loan system can sustain itself for the next 13 years. For the sake of American innovation and the American economy, it might be time to rethink the way we do higher education in this country.
Matt Brennan is a marketing copywriter, occasional parenting writer, and journalist in the Chicago area. He is also the author of Write Right-Sell Now.
—
Related, here on GMP:
America’s Most Pressing Economic Problem Exposed!
Thom Hartmann interviews Alan Collinge of Student Loan Justice
PRESS RELEASE: Historical Student Loan Defaults Far Higher than Previously Acknowledged, Current Loans Likely Far Worse
For-profit colleges are not to blame.
The True Cost of Student Loan Forgiveness Programs
Our government has apparently found a way to get blood from a stone.
__
Photo credit: Getty Images
Agreed, when I was getting my Bachelor’s in the mid 80’s -I made $6/hr as a shift mgr,worked 25-30 hrs during the school year and made a lot of overtime in the summer -With savings from HS, scholarships and working was able to cash flow tuition, didn’t have to take out loans Think tuition was around $2500 yr at a regional in state school, and my share of rent with roommates in a crappy house was ~$100/month -traditional wisdom was just get a degree, any degree and you will be marketable. Today, my son is working as a shift manager,… Read more »
Hi Donna. Thanks for commenting. That’s awesome that your son found a major with such a great placement rate. I’m sure engineers will remain in demand. The $44K number came as a projection for 2030, and I believe it’s based on the current rate of tuition increases. But I’m not entirely sure how they arrived there.