Weird thing to say, right?
Spend my loan?
Yes!
You’re taking out a loan, a contract and in most cases with the U.S. Government.
They don’t play!
Ok…I am glad you’re going to college.
Obviously, you take that seriously or you wouldn’t be going into debt to pay for it.
Here’s the thing; make sure that you’re not blowing your loan money.
I say that because sometimes we major in something because it’s expected of us or sounds good at cocktail parties.
I’m guilty of it too!
I met this woman whose son is pre med and I nodded my approval as if that matters.
Chances are incredible that I won’t be dating her by Thanksgiving.
What does this kid care?
Why would you?
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Spend Your Loan Money
Alas, a little reality here.
I want to make sure that the debt you’re going into is not misplaced.
Make sure the program you’re looking at is a bona fide accredited institution and go in to have the experience that a new environment can bring.
Even that can mean little despite stricter federal regulations.
The Pitch
For profit colleges confer an Associate or Bachelor’s degree in a shorter period, usually two years to four years, with more flexible scheduling for “working people.”
What’s more, they promise job placement.
Not bad, but beyond the default/bankruptcy rate among the for profit sector, let’s look at the national averages before I get all philosophical…
According to ThinkProgress, an educational think tank, “…only 56 percent of the students who enter America’s colleges and universities graduate within six years, while only 29 percent of students who enter two-year programs complete their degrees within three years.”
Most of the rest dropout and this is for your standard accredited two or four year community college or university!
The ones who don’t go broke!
Remember that only around 20% of the primary school population even tries college.
Let’s look at the for profit schools, as it gets bleaker.
Only 22 percent of full-time students seeking a Bachelor’s degree graduate, compared to 56% at public institutions and 65% at private nonprofits (i.e. Harvard, Stanford).
Sadly, those who manage to obtain a for profit degree do not fair much better as 72% of for-profit colleges produce graduates that earn less than high school drop-outs.
I might also add, for profit “counselors” work on commission (you are being warned).
I’ll repeat that last bit; 72% of for-profit colleges produce graduates that earn less than high school drop-outs.
But why, you may ask?
I got me a degree and everything!
Well, and this is a generality so don’t get all in a huff; most people in these programs are looking for a short cut.
There are no short cuts and as a result, these programs have reputations that students suffer for.
Students are promised the moon, and most are charged near what colleges and universities do (state schools, anyway).
As for scheduling?
Schools have night and early morning classes, so there’s that…
And there’s something else
It’s more tangible than you think.
The types of jobs that a for profit school trains for, typically are not high paying ($40,000 plus), entry level business or tech jobs.
Sure, you can fix a computer but you had to go to school for that?
You’re not writing code, that’s the job for the Texas Tech person who will not be hired to fix computers!
A dental hygienist beats McDonald’s but the sales clerk at the makeup counter at Nordstrom’s for MAC makes more and they don’t have a jacked up student loan.
Apologies if this is brutal but let’s pretend; you’re an HR person in Texas and two resumes come in and one is from Texas A&M and the other went to Devry.
Now, if they want to pay less, they know they can get Devry to take the job.
However, if there’s more money, they’ll talk to Devry but they’ll probably hire A&M and A&M will ask for more because they know who they are…
…and now for the thing less tangible…
You’re also paying for exposure and access to things that going to class online or in a basement in an industrial park cannot get you.
Educating yourself is more than getting a “good job.”
That is a phenomenon of the last 40 years as a degree sadly became a receipt for intelligence.
William Mulholland, a high school dropout from Ireland, designed the Los Angeles water infrastructure in the 1880s.
Many of my friend’s fathers had careers on a high school diploma that they couldn’t touch today.
Now, it seems like you need a degree for everything!
Meanwhile, the “guaranteed job placement” that is heard online and in TV commercials?
THAT is a red flag!
My school helped me with some internships, and companies would come on campus, but it’s still up to you to land the interview or job.
They’re looking for people.
People who they can promote to do more stuff so they don’t have to!
That’s the purpose of employees, and hence, running a business.
Here’s where I hilariously turn into my dad; who came to this country in the 1960s, illiterate and went into business, never filling out a W-2 in his life.
Sadly, he made it easier for us kids, but not by much…nothing is handed to you.
Get “fair” out of your vocabulary.
It took me six years to get out of school and I still cruised with a “gentleman’s C,” (almost a family trait) as my cousin likes to say.
You still have to know something other than your major.
All science and no philosophy makes Jack (or Jill) a dull boy and no one likes dull.
Decide on something and act like it, have a point of view.
Pick something you want to do and you won’t work much, I promise.
If that last line needs explaining, I’m starting a school next week…
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