More High School Grads Decide College Isn’t Worth It

Dec 2013
Everything is going to be OK
Indeed, median annual earnings for full-time working 25- to 32-year-olds with bachelor's degrees grew by nearly $6,700 to $45,500 from 1965 to 2013. During that same time, median annual earnings for high school graduates in that same age group fell by nearly $3,400 to $28,000.
i was wrong 28k divided by 45 k is 62% not 50% so to be fair i was off by 12%
The average yearly salary for a trade school graduate is between $40,000 to $58,000, according to Payscale. The average salary for a bachelor’s degree holder in the class of 2016 was $50,359, according to the National Association of College and Employer’s Spring 2017 Salary Survey. That can be as low as $47,000 for a Philosophy major compared with $68,445 for a Chemical Engineering major.

Why You Should Consider Trade School Over College
Likes: xMathFanx
Dec 2017
I do understand what you are trying to say here.

From what I just looked up, somewhere between 22-35% of parents contribute at least a portion of college costs to their child(ren). That leaves 65% or more kids that pay for school for themselves. College loans are generally made on the understanding that these kids will have the financial ability to pay it back after school is done. A collateral based loan, which would be needed for buying a whole bunch of stuff to set that same person up in life, is generally only 75% of the value of the property. This allows for recouping costs if the loan fails. With that background given, what bank is going to loan a person these starting costs when they have no marketable skills, no job and no plan to get those skills in the immediate future?

Now, where I think that it would benefit most young people to spend two years in the military before going on to college, we don't have a mandatory military. We also don't have a system where most parents have four years of money up front for college costs. Most parents pay year by year or, more commonly, semester by semester (as I did). Most folks are not set up to carry a mortgage on their own home and a mortgage on their kid's home. Add to that, there are many more costs of owning a home than the mortgage and the "extra" money you calculated for living expenses would not go very far.
@Knight of Sappho

Thanks for your input.

Now, the money actually would be available--here is one path how. For starters, the government currently guarantees Stafford loans as well as federal and state grants, which means as long as a person is enrolled at Community College, those funds would be there. My local Community College costs $3600 per year full time, grant money alone (money which does not have to be paid back) is offered at nearly $9000, loans another $12,500, then all students who have a co-signer or a good established credit history have access to much more money (in the form of debt) through private loans, plus they could independently work and there parents may or may not have saved up a bit of cash for them.

Then, consider, if a family saved up $10,000 for the kid (and gave it directly to them instead of only toward College tuition), that first semester the kid has nearly $17,000 available and is going to school full-time. Now, if they stay home that first semester (3-4 months) start working even 20 hours a week from High School Graduation through that first semester, that will give them another $6000. Then by the next semester, which would only be the beginning of January, they would have nearly $40,000 available while going to school full-time--without even the need for a private student loan (which they could get, if they wanted, with the help of their family). That is comfortably enough money to put down on your own place (mortgage, typically 10-20% for new/non-established credit history), put down on a car, get some "starter items" in your place (cheaper furniture that will be replaced), not have to worry about payments since there would still be plenty of money in the bank for it (and, again, they would still be working part-time+). The amount that they would actually have accumulated in debt at that point is only $12,500, which is what they simultaneously would be making by working any standard part-time job a kid could get (i.e. it is a relatively trivial loan amount given the situation). The next year, more guaranteed money would be available as well, which is how they could the "nice stuff". Again, they would only be a teenager still, be going to College full-time, and fully independent, free, and quite well off a) materially b) educationally c) financially d) generally quality of life (in this department, at least). Also, it should be noted, the government loans only have a 4% interest rate on the pay-back--it is nearly a one-to-one borrow to pay-back set up, you can't ask for better than that.

Also, I understand where you are coming from with the 2 years of service. Though, I would suggest opening that up to "any kind of real service to community and/or country". For instance, you could join the Coast Guard, as you suggest, or the Red Cross, Peace Corps, Big Brother Big Sister, Paramedics, Fire Dept., volunteer tutor for community members, volunteer at senior living homes, etc. etc. etc.

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