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skewart | 4 years ago
I don’t think that means we should tell young people to take out loans to buy a Ferrari because it’s a ticket to easy money.
When the only kids going to college were either rich or highly motivated then having a degree made you stand out and could open doors. When everyone gets a degree it doesn’t make you stand out any more. Instead, not having a degree makes you look bad. (And unlike high school, which anyone can attend for free, most kids in the US need to take on a lot of debt just so the don’t get left behind.)
websites2022|4 years ago
Then let’s talk when we get closer to everyone having a degree. 33% is not everyone and “a degree” is not a single product that can be compared 1:1 across each instance.
> most kids in the US need to take on a lot of debt just so the don’t get left behind
The average student loan debt for undergraduate degrees is $28,950. This is not “a lot of debt.”
According to the valuation analysts at Kelley Blue Book, the estimated average transaction price for a light vehicle in the United States was $37,876 in 2020.
That is to say, on average, students are taking on the debt for a 4 year education, that sets them up on average to earn a million dollars more in their lifetime than their peers who don’t, for less than the average transaction price for a light vehicle — an asset that depreciates ~20% when you take it off the lot.
And you get the keep the credentials a lot longer.