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bjbj Hello everyone and welcome to another episode of EricksonTV. Curtis here with Lauren.
So it s fall and this is when the school year is starting for a lot of people, especially
for college students. In fact, Shelley here was just talking about her sister who started
her first day of college today. I thought that was very timely. We are going to talk
about college as an investment and about the crisis of student loan debt. I thought I d
start by reading off some statistics and then you, Lauren, could talk about what you learned
about student loan debt. This is not to make people feel bad if they had to take a student
loan out to pay for college, but to talk about the national crisis and the volume of debt.
Since 1978 the cost of college tuition in the United States has gone up by over 900%.
That is not accountable by inflation. In 2010, the average college graduate had accumulated
approximately $25,000 in student loan debt, per student, by graduation day. This is only
for 4 year college. Approximately 2/3rds of all college students graduate with student
loans. Americans have accumulated well over $900 billion in student loan debt, which is
higher than total amount of credit card debt. This is where college becomes an investment:
Federal statistics reveal that only 36% of full-time students who began college in 2001
actually got their 4-year degree in 4 years. So it s taking longer to get through school.
To touch on that, I think part of the reason is because colleges are so crowded with the
economy the way it is. There has been a huge upswing in college submissions and with education
cuts it s harder to get the classes the students want. So what s your take on student loan
debt? Well for this video, because we have talked about the cost and the size of student
loan debt, what I want to talk about is an article that recently came out. It showed
that for several of the less economically viable majors, the unemployment rate for college
graduates with those majors was barely different from the unemployment rate of those who just
had a high school education. Now I m certainly not going to name the majors because I don
t want to make anybody feel bad. But in many cases even the medium incomes for recent graduates
with those majors was lower than the medium income for someone with a high school diploma,
or in some cases very, very similar. Okay, that s not necessarily the worst thing in
the world if you went to community college and then you got a lot of scholarships so
you paid very little. But if you re coming out of college with a lot of debt and you
have a major that doesn t do much for you in comparison to what would have happened
if you had just gone to work after high school and been in the job market for 4 years, that
seems like a lot of debt to take on to not take very much of a return on your investment.
I think that is a great but scary statistic. This one coincides with that: 1/3 of all college
graduates end up taking jobs that don t even require college degrees. And that s not even
including the ones that simply cannot get jobs. I don t want to discourage people from
getting an education or from going to college but please be careful. So on our next episode,
we ll get a little more into the specifics of student loans. So we ll see you next time
on EricksonTV. Bye now. tetV VGVG h_vx hkkj h|H[ wkwXL h_vx hVKF h_vx h_vx hkkj h_vx hkkj
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country-region Hello everyone and welcome to another episode of EricksonTV Curtis Erickson
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