Before enrolling your teen in college, carefully evaluate their aspirations and options. Ric Edelman believes there are alternative paths worth considering.
For years, the response to “Is college worth it?” seemed obvious. Attending college was viewed as essential—a gateway to better job opportunities, higher salaries, and a secure future. Whether or not student loans were involved, the message was clear: Obtain a degree and achieve your dreams.
However, this formula is changing significantly.
In a recent podcast episode, financial advisor and author Ric Edelman shares insights on why we should reconsider our beliefs about college. In his latest book, The Truth About College, he highlights how soaring tuition costs, increasing dropout rates, and evolving job markets complicate the decision to pursue higher education.
So, is college worth it? Edelman asserts it can be, but only for the right individuals, under suitable conditions, and with a solid plan.
College as a Valuable Opportunity—But for the Right Candidates
Jean Chatzky: Mark Kantrowitz, a student debt expert, advises that the total borrowed for four years should not exceed expected first-year earnings. Do you find this guideline reasonable?
Ric Edelman: I appreciate his cautious approach to borrowing. Ideally, students should aim to finish college without any debt. Graduating debt-free, ideally in four years and with commendable grades, should be the goal.
Some may argue that this isn't feasible. My response? If that’s the case, perhaps college isn’t the right choice. Today, numerous opportunities exist to earn a degree without incurring debt. I’m not against education; I oppose the outdated notion of college as the sole route to success.
A Degree Doesn’t Guarantee Employment Anymore
Jean Chatzky: What careers do you foresee as the most resilient in the future?
Ric Edelman: It's less about specific careers and more about skill sets. Four essential traits will be highly valued by employers moving forward: critical thinking, creativity, management, and communication.
While automation is beneficial, we must guide technology effectively. AI requires precise instructions to function as desired. Therefore, it’s vital to conceptualize goals, bring ideas to life, manage the process, and communicate outcomes effectively.
Surprisingly, technology reinforces the value of liberal arts education, which fosters the very skills needed in tomorrow's job market.
So…Is College Worth It?
Jean Chatzky: How can students make informed choices about college if they’re unsure of their goals?
Ric Edelman: It’s crucial to understand that attending college right after high school isn’t the only or necessarily the best option anymore. Taking a gap year to travel, explore interests, and gain life experience can be beneficial. Students might also consider auditing college classes while still in high school.
Additionally, there's societal pressure to conform. Parents often feel compelled to boast about their child's college choice, avoiding discussions about community college or alternative paths. This stigma can hinder healthy decisions for students.
