The Cost Of College Is Not Justified, Here's Why
In todays modern world everyone is asking how much they SHOULD pay for college and no one is asking SHOULD I EVEN PAY for college. I am expanding on my previous piece about whether college if looked at it as a business from an individuals perspective is a good business. In a short summary I said, no, it is not a good business because the revenue as an average generated from wages after taxes with your overall long term debt ratio isn't worth it. What I am discussing here is the price itself on an average whole. There are many different individual scenarios but the education system as a whole, just like the real estate bubble's of 2008 and 2017 (yes we are in a bubble now) is exactly that, a bubble. The reason is because college's have plain and simple become a business and the revenues millennial individuals are receiving from this asset paid for with debt simply isn't adding up.
Our (yes I am a millennial) millennial generation has been so ingrained in the college experience that honestly it was a no brainer to create a monopolistic heavily priced market place. I mean from everything our parents taught too us too pop culture has been centered on how much you HAVE to go to college and how much you HAVE to pay. No one has really said do I even need this? When you look at how easily debt has been given to most college students from college loans and credit cards it is actually kind of staggering. I mean a college graduate cant get a loan for a house when he has a job but has $50,000 thrown at him for an undergrad degree in a field s/he is not even sure they are committed too at 18, hmmmmm? There was a bubble I believe in 2008 that kind of resembled this free giving of debt I believe it led to the fall of Lehman Brothers and Bear Sterns.
I know a lot of you are getting pissed right now about me saying college is an over priced business but the fact is for most people out there it is. I mean think about it education is a monopoly, in the eyes of college's you are taught you HAVE to have this paper or else you will never succeed. That means they can charge you whatever the hell they want as capitalists.
Education though is necessary, I want to mention that before everyone stops reading what I am writing out of sheer anger. This day in age though education is being streamlined everywhere and at a more cost effective way. I mean never before in our history could you conveniently find almost every college textbook used in the US on one site, AMAZON. So the question I am asking is in an age where convenience is everywhere do you need to pay someone $200,000 over 4 years just in fees not living money or anything, to teach you what you can conveniently find out for free? The answer in the coming years is quite frankly no.
The reason why this education cycle is a bubble is because the current generation of millennials will on average be in debt until the age of 40 if not longer in student loans. This means a large portion of the population will have limited assets too or have saved up and will need to save just so they can retire, never mind pay for their own kids education. As millennials get older and more successful entrepreneurs come out of not going to college or dropping out the idea of college being a necessity will start to change.
An education will not change only the form in which it is applied will begin to change. As millennials maybe unable to even think about affording their kids a four year degree other options will begin to spring out. Everything from online courses too certifications in specific fields. The dynamics and social structure of our college education system will change. Everything after all changes. Some examples, before the 1980's football wasn't the USA's #1 sport you know what was, boxing. My how that has changed and now the UFC is looking to take the #1 spot. This isn't an exact match to education but it is a social dynamic. Look at the like's of Codecademy and the progress they are making in online education for coding. Its amazing and AFFORDABLE. Just like any great capitalistic society when monopolies form and pricing is high people will be resourceful and find other means, driving the price of education down.
The price of education right now isn't worth what we are paying the wages in the country do not reflect that price. Therefore there will be structural changes that happen.