The Debt Hawk » College Advice

The Future of College Education

Hawk — Wed, 05 May 2010 11:30:51 +0000

I recently read a great article by Seth Godin titled - The Coming Melt-Down in Higher Education. If you don't read Seth Godin's blog, I highly recommend it. And, this article on the problems with higher education is a great read. And, it happens to mirror my thought on the state of college education as well.

Rising College Tuition Costs From 1978-2008

Seth believes that colleges' rising tuition costs and myopic focus on U.S. News and World Report Rankings are making college less useful for stellar students. In particular Seth makes the following claims:

College only focus on average students now, not the best of the best
College tuition has risen much faster than wages
College rankings say little about the quality of education students receive
There is very little correlation between the success a college grad will have graduating from lower tuition school versus a higher tuition school
College accreditation standards are watering down the product offered by colleges

I couldn't agree more with Seth.

College Has Not Changed with the U.S. Economy

I feel that the U.S. economy has revolutionized itself and colleges have not kept up. The U.S. economy today is not being driven by large corporations hiring massive amount of knowledge workers for middle management positions. While this might have been the case in the 1960s through the 1990s, this is no longer the state of our economy.

Today's economy is being driven by small business IDEA Workers. These are entrepreneurs who figure out how to create things - better services, better products. But, our education system still assumes that college grads will graduate and get hired by a Fortune 500 company where they will work for the next 30 years. Who does this anymore?

I recently read in Dan Miller's 48 Days to the Work You Love (a book you should read by the way), that the average employee stays at his job 3.2 years. You heard that right - ONLY 3.2 YEARS. Gone are the days of working at a company for 30 years, retiring with a pension and a gold watch. America's knowledge workers are in a very volatile marketplace and colleges need to change their curriculum and teaching style to prepare grads for this volatility.

College Tuition is Not Justified By the Expected Wages Earned

With college tuition going up as fast as it did, the economics of a college degree just aren't rational right now. I had friends graduate from college with $100,000 in debt and a Bachelors in Education degree where they were going to make $40,000 a year. That just doesn't make sense. And, I think that consumers are starting to realize it.

I was hopelessly naive about college debt when I went to college and law school. Thank God I got a job at a large law firm out of law school that allowed me to recover from my mistake, but I can tell you this, I will not let my kids make this same mistake. I think that there are a lot of Gen-Xers and Gen-Ys that feel the same way as me. Colleges will be fundamentally changed by these parents who will not allow their children to take on mountains of college debt.

Colleges Need to Focus on Teaching Again

For years the focus of college professors has been on everything, except for teaching. College professors are expected to get grants, conduct research and write academic articles on obscure, academic issues. This is their focus - not preparing their students for jobs in the real world.

Colleges must get back to teaching. Parents today know about this problem and will become demanding consumers for good education. College cannot just be a 4 year vacation at a luxury resort that gives you lots of connections. No, the product must be excellent. And, that product is teaching students, and preparing them to enter the real work force.

It will be interesting to see how college education changes in the next 10 - 20 years. I hope that I am right about my predictions.

Top 10 Tips for Graduating College With Little Debt

Hawk — Wed, 03 Mar 2010 11:58:09 +0000

Enjoy College Life!!

The cost of college today is getting out of hand. I hold the colleges, government and consumers all accountable for this crazy environment. However, there are ways to save a lot of money while in college. Here are my top 10 tips for graduating college with little debt.

1. Pick a College With a Price Tag that Matches Your Expected Salary

On of the best pieces of advice I know is to make sure that the your college's tuition is in line with you expected salary. A common rule of thumb when financing a college education is to not borrow more than you will make your first year out of school. Therefore, if your career choice pays a small starting salary, don't go to an expensive college.

I went to a very expensive private college and was amazed at the students who were going there to become school teachers. To get a great teaching job they did not need to go to such an expensive school. But, they didn't think about the cost (or their parents were paying in which case, GOOD FOR THEM!! LOL).

To tell you the truth, to become a lawyer, I really didn't need to go to a very expensive private college!! Luckily I was on scholarship, but this could have been a much larger mistake for me. I still spent too much for college, but it was a recoverable mistake.

2. Study

This tip should probably be number one, but oh well. Studying is a great way to spend your free time in college. After all you are going to college to learn and studying essential for learning. Also, it is one of the cheapest activities you can engage in.

One tip I have is to have study buddies - people that you study with. This turns studying into a mixture of learning and socializing.

3. Work During College

I am dumbfounded by the number of college students who do not work during college. Every college student has a ton of free time. One of the best ways to fill up this free time is to get a job.

I like three types of jobs for college students.

Jobs where you can study - many work-study jobs offered by the university are perfect for this. I worked in the library my first year of college and then as a nighttime receptionist at a law firm for the remaining 3 years. Both of these jobs allowed me to study while I "worked."
Jobs related to your career choice - As I mentioned above, I worked as a nighttime receptionist at a law firm. This allowed me to network with lawyers and see first hand what life in a law firm was all about. Although sometimes I wonder if I was paying attention, but that is a story for another day.
Jobs at your favorite social hangouts - While these jobs are not as good as the two job types above, they offer college students the ability to get paid for hanging out with their friends. Many friends of mine in college were bartenders, bouncers, or club promoters.

4. Live Like a College Student

You have to have to embrace the student lifestyle. Change your mindset - you should not try to maintain the lifestyle you had at home with your parents. Too often kids go to college and want to act like they are in the workforce. They are not - they are a poor college student.

Embrace this culture. Most of your fellow students are poor therefore there is no pressure to keep up with the Joneses. Enjoy this time of your life where you have little financial responsibilities.

5. Use the Cafeteria

If you are paying for the school cafeteria, make sure that you use it. Don't pay for dinner twice by going to a restaurant outside your college meal plan. In today's resort-like college campuses, there is no reason why you cannot find some type of food that fits your craving.

6. Get Roommates

This is a pretty obvious one. Make sure that you are sharing living expenses with roommates. Everyone has a roommate in college, therefore don't fight it. You will save a ton of money. Plus you will probably have a ton of fun.

7. Don't Get a Credit Card

I cannot stress this enough - DON'T GET A CREDIT CARD!!! If you are buying stuff on credit cards in college, this means that you are spending too much money. Don't get yourself in the habit of using credit cards. And, begin your financial life by learning how to live within your means. If you learn how to do this in college, you will be set for life!!

8. Find Hobbies That Are Inexpensive

Colleges are luxury resorts nowadays. Make sure that you fill you free time by taking advantage of the ton of "free" things offered by your college. Get in shape using the college gym, playing racquetball, or participating in inter-mural sports. Go to the cultural events offered by your university, for example, go to plays, orchestra productions, networking events.

9. Participate in College Clubs or Fraternities

College clubs and fraternities are often great ways to socialize and network. I participated in several college clubs and a fraternity in college. Some of my best memories from college are from these groups. Just make sure that you are not signing up for a club that costs a lot of money. While it might sound great, there are a ton of clubs that aren't so expensive.

10. Study

Hey, you already mentioned this one! Yep, and I am going to say it again - STUDY. In order to get the most out of college you have to study. You are paying a ton of money to get an education, make sure you get one. This is the cheapest, best activity for any college study.

I hope that these top ten tips help you to graduate college with less debt. And, enjoy your time in college. It is one of the best experiences in life!!