How Does Money Impact College Choices?

How Does Money Impact College Choices?

The role of money in a university education is twofold:

1. Is the student studying something that can lead to a paying job?
2. How much money is the degree costing?

Both of these roles are very important and neither should be ignored. But the most popular choice in America seems to be to ignore both of these at the same time, and take a very expensive degree that has no hope whatsoever in generating any kind of income.

What Does the Major Pay?

Different majors have different earnings. So what does the major pay? It's not hard to get average figure for various markets. Another way to get information is to look at job sites and see what jobs are being advertised in that fields. Sometimes the jobs will include a pay range, and that will be useful information.

I am certainly not saying that everyone should automatically pick the highest-paying profession and major in that. I am simply saying that potential students need to make informed decisions. Whatever their choice of major, it will have a major impact on their financial situation. That needs to be factored into educational decisions.

Simply put: students who want to try to make it in a field with low pay and few jobs are well advised to make that attempt without a lot of student loans to pay off. The combination of unemployable major and large student loans is toxic.
What Do You Pay for the Major?

What is the cost of getting that major? 

This is where choice of school comes in. Schools will like to sell you on the idea that you should just apply everywhere and not give a moment's thought to the cost.

Car dealers would also like you to do that. If you are smart enough not to do it for a car, you should be smart enough not to do it for something far more expensive and important.

Don't forget other expenses, like travel and cost of living. Get an idea of how much money is being spent each term. Where is that money coming from? Is there a path to get the student through the degree?

It does no good to spend all your money on two years of a school, only to have to move somewhere else to finish, because the cost is too high and the money is not there. Start college with a plan that gives you a good chance of succeeding.