Is Student Loan Debt Worth It?

– In order to be happy, successful, and get a good paying job, you must go to college Parents and high school guidance counselors have touted these words of wisdom to young people for decades

And for some students, this message is accurate, but for many others the walloping debt that comes with a degree makes going to college simply not worth it (upbeat music) Tuition for public and private colleges has ballooned by 500% over the last 30 years, and it only continues to go up Private and public colleges cost an average of $33,000 and $24,000 respectively Many more colleges will set your family back by over twice that amount These ridiculously fat price tags have lead to the average college graduate walking away with over $30,000 in student loan debt

Now, it would be easy to assume that these grads could pay off their debt quickly since they'll of course get a good pay job thanks to their college degree, but that's just not reality Recent stats show that 53% of recent college graduates are jobless, or they're underemployed, meaning they can't find a good full-time job It would be easy to blame this high jobless rate on a tough job market, and while that's certainly a contributing factor, people rarely talk about the government's role in exorbitant tuition fees and colossal student debts Government loans were created to help low-income families afford college Sounds noble enough, but today about 60% of college students borrow money from the government to pay for their education

That means that the majority of college students do this As usual, a government program that started with good intentions has done more harm than good Here's why, essentially any student can qualify for any amount of money they need to cover their tuition, no matter how high the tuition is This lets colleges continue to raise their prices because no matter what they charge students will always be able to finance it Washington bureaucrats have told us that entitlement money is necessary to ensure that young people are "getting the education they need

" Those were the exact words by President Obama But that's just nonsense A free market without government aid would drive college prices down and make it more affordable for everyone By making government student loans unlimited and over accessible, colleges have no incentive at all to compete by lowering tuition, or even offering more direct links to jobs or entrepreneurship opportunities If most students paid their own way, however, schools would be forced to lower tuition to remain competitive

That way, they could attract the best and brightest young people But as it stands now, college is clearly not worth the debt for many young people 14% of waiters and 17% of bartenders in the United States have a bachelors degree And 36% of recent grads move back in with their parents Worst still, most colleges offer these expensive degrees that offer little in the way of job prospects

The job opportunities for English and Art History majors, for example, they're far fewer than the number of kids pursuing these degrees Many of these graduates are in for a rude awakening when they graduate and realize that their skills are not in high demand in today's economy Yet, for some reason, high school guidance counselors make students feel as though a bachelors degree is like a golden ticket to prosperity High schoolers are made to feel like failures if they don't enroll in college, when in reality there are plenty of viable alternatives Vocational and trade schools, for example, are an acceptable, more affordable option in many cases

Community colleges are also very underrated and they allow students to explore different subject areas without going broke It's common sense Until Washington stops indirectly inflating the price of college tuition, many degrees are simply not worth the cost If you liked this video, please share it, and you can find more great videos by liking our Facebook page, subscribing to our YouTube channel, and visiting capitalismcom

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