Help me square this circle.
We've all heard it. Supposedly college grads earn $1 million or more during their career ABOVE what high school grads earn.
The average college graduate has around $30,000 in student debt.
And now it's being reported that a whopping 40% of grads with student debt are on the road to default by 2023, a few short years from now.
https://www.cnbc.com/2018/08/13/twenty-two-percent-of-student-loan-borrowers-fall-into-default.html
During a 40 year career, an extra $1 million in earnings equates to about $25,000/year more than a high school grad. Even in the early career years, the supposed disparity would be $10k or more....more than enough to handle student loan payments given record low unemployment and record low interest rates.
Does something smell fishy?
Could it be that that supposed $1 million in extra earnings confuses correlation and causation? (People who are destined to earn a lot tend to go to college, but going to college does not lead to earning more?) Or that the opportunity cost of skipping college is worth more if properly invested? Or that the supposed $1 million in earnings is a mean average and includes Jeff Bezos, Warren Buffett and a few other who skew the average a tad? Or that, like with the housing bubble, college is being sold to a generation of hopeful as "the American Dream" when in reality they're being set up for the American nightmare?
Something is not squaring up for me.
We've all heard it. Supposedly college grads earn $1 million or more during their career ABOVE what high school grads earn.
The average college graduate has around $30,000 in student debt.
And now it's being reported that a whopping 40% of grads with student debt are on the road to default by 2023, a few short years from now.
https://www.cnbc.com/2018/08/13/twenty-two-percent-of-student-loan-borrowers-fall-into-default.html
During a 40 year career, an extra $1 million in earnings equates to about $25,000/year more than a high school grad. Even in the early career years, the supposed disparity would be $10k or more....more than enough to handle student loan payments given record low unemployment and record low interest rates.
Does something smell fishy?
Could it be that that supposed $1 million in extra earnings confuses correlation and causation? (People who are destined to earn a lot tend to go to college, but going to college does not lead to earning more?) Or that the opportunity cost of skipping college is worth more if properly invested? Or that the supposed $1 million in earnings is a mean average and includes Jeff Bezos, Warren Buffett and a few other who skew the average a tad? Or that, like with the housing bubble, college is being sold to a generation of hopeful as "the American Dream" when in reality they're being set up for the American nightmare?
Something is not squaring up for me.