Dreams Derailed

60% of Students Consider Abandoning College Due to Cost.

The higher education landscape is currently in a state of upheaval, with a staggering 60% of college students contemplating dropping out due to severe financial strain, as revealed by a survey conducted by Ellucian, a leading higher education tech company. Even more alarming, 19% of these students have abandoned their studies, citing financial uncertainty as the primary cause. This dire situation prompts us to critically evaluate a college degree’s return on investment (ROI) and explore alternatives that could offer better financial stability and career satisfaction.

The Financial Burden of College with Rising Costs and Student Debt
The cost of pursuing a college education has soared over the past few decades. According to the College Board, the average annual tuition and fees for the 2023-2024 academic year stood at approximately $10,560 for in-state students at public four-year institutions and a hefty $27,020 for out-of-state students. The average cost for private non-profit four-year institutions was an eye-watering $37,650. These figures do not even include room and board, textbooks, and other living expenses, which can easily add thousands of dollars to the total cost.

To cover these expenses, most students rely on student loans. As of 2024, the total student loan debt in the U.S. exceeded $1.7 trillion, with the average borrower owing about $37,000 upon graduation. In Canada, it has surpassed Canada, which stands at approximately $22.3 billion, with the average borrower owing around $28,000.
This significant financial burden has led many to question the value of a college education.

The Value Perception Crisis

A recent study by the Pew Research Center found that only 22% of Americans believe that college is worth the cost if it requires taking out student loans. Even without needing loans, only 29% think college is worthwhile. This growing skepticism is rooted in the financial realities graduates face, who often struggle to repay their loans while securing well-paying jobs.

One of the primary arguments in favor of a college degree is the higher earning potential it provides. Data from the New York Federal Reserve indicates that the typical wages for young workers with a high school education are around $36,000 per year. In contrast, recent college graduates can expect to earn approximately $60,000 annually. Over a lifetime, this earning differential can amount to a substantial sum, making a case for the long-term financial benefits of a college degree.

College graduates also tend to experience lower unemployment rates than their peers with only a high school diploma. According to the U.S. Bureau of Labor Statistics, the unemployment rate for individuals with a bachelor’s degree was 2.2% in 2023, compared to 5.2% for those with just a high school diploma. This increased job stability can be a significant factor in pursuing higher education.

However, the benefits of higher earnings and lower unemployment must be weighed against the costs of obtaining a degree. According to the Federal Reserve, the average student loan payment is about $393 per month ($300/month in Canada), which can significantly impact a graduate’s financial situation, particularly in the early years of their career. Additionally, many graduates find themselves underemployed, working in jobs that do not require a college degree, which can further strain their finances and delay the ROI of their education.

Given the financial challenges associated with a traditional college education, exploring alternative pathways that offer a better ROI is essential.

Trade schools and apprenticeships provide specialized plumbing, electrical work, and HVAC systems training. These programs are typically shorter and less expensive than four-year colleges. According to the Georgetown University Center on Education and the Workforce, the median annual wage for trade school graduates is around $55,000, with some trades earning significantly more. Given the lower cost of education, averaging $33,000 for a 2-year program and shorter training periods, the ROI for trade schools can be pretty attractive.

Consider this: with the right alternative pathway, you could potentially see a 66% return on your investment in the first year after completion.

Technology Bootcamps
With the rise of the tech industry, coding boot camps and other technology training programs have become popular alternatives to traditional college degrees. These programs typically last three to six months and focus on skills like software development, data science, and cybersecurity. According to Course Report, graduates of coding boot camps can expect to earn an average starting salary of $70,000 with an average cost of $13,500 for a 14-week program. Considering these programs’ relatively low cost and short duration, the ROI can be substantial, especially for individuals who quickly secure employment in the tech industry.
Potential ROI: 382% in the first year after completion

Entrepreneurship
Investing in a Business Ownership is another viable alternative to a college degree. Franchising offers the opportunity to own and operate a business with the support of an established brand. The International Franchise Association (IFA) reports that the average initial investment for a franchise ranges from $50,000 to $200,000, depending on the industry. Franchise owners can achieve significant earnings, with many franchises generating annual revenues exceeding $100,000.
Potential ROI: Extremely variable, from negative to potentially infinite.

College Degree ROI: National Center for Education Statistics, the U.S. Bureau of Labor Statistics.

• Average cost: $101,000 for a 4-year degree
• Median salary: $67,000 annually for recent graduates
• Potential ROI: 14% annually over a 40-year career

Career Ownership Coaches® offer personalized guidance to individuals exploring alternative career paths. A Career Ownership Coach® can help clients identify their strengths, interests, and financial goals and match them with suitable opportunities. By leveraging the expertise of a coach, clients can make informed decisions that align with their long-term financial and personal goals, potentially achieving a better ROI than traditional education paths.

While a college degree can lead to higher earnings and lower unemployment rates, the costs associated with obtaining that degree, including student loans and the risk of underemployment, can diminish its ROI. In contrast, alternatives identified by a Career Ownership Coach® can offer more immediate and substantial financial returns with lower upfront costs and shorter training periods.

Ultimately, the decision to pursue a college degree or an alternative pathway should be based on carefully analyzing the financial implications and personal career goals. By considering all available options and making informed choices, individuals can maximize their ROI and lead to long-term economic success. Career Ownership Coaching® can play a pivotal role in this process, providing the guidance and support needed to navigate the complex landscape of career opportunities in today’s economy.

About Your Career Revolution

Our mission is to help individuals explore self-sufficiency as an alternative career.

We help them define their Income, Lifestyle, Wealth, and Equity goals and provide education on the best ways to achieve them. We don’t sell franchises – we help people achieve their dreams of self-sufficiency through business ownership. The approach is different, the experience is different. And it works.

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