Hiding from the Economy With Loans

Dear Student:

I know that the American employment landscape is quite frightening and has been for a while. Friends of mine are moving home to regroup and figure out how to survive while looking for work, or even as full time employees! It is tough for everyone and I want to fully acknowledge that. However, despite how safe school feels you have to go ahead and get out there.

I’m quite saddened and, quite frankly, startled to see young people staying in school unnecessarily to avoid facing the economy. Most colleges only require 120 credits to graduate, but I am seeing students with 150 and more. Some of these students say they are adding a second major to be more competitive. However, I implore you to figure out the long term costs.

Tuition at my institution is quite expensive. Tuition, fees, room and board tops 56 thousand dollars. 56 thousand dollars is more than many Americans earn per year. Staying in school to add extra credits at a cost of 56 thousand dollars does not make long term fiscal sense. Even if your university expenses are less think about what your starting salary may be and how you will pay off that extra year of schooling.

Even though the economy is tough it is better to get out there and start your career and build experience. You may have to live at home and that’s okay. You may have to share an apartment or house with several friends. Again, doing so is okay, and actually pretty fiscally sound if you put away the money you save on rent and pay down student loan or credit card debt contribute to your retirement or put it in a good old savings account.

If you insist on staying in school then I suggest that you earn another credential. Adding credits to your bachelor’s degree does not help in the marketplace. Also, employers may question why you did not graduate on time. Earn a certificate or master’s degree if you can instead. You may not be able to use the graduate education right away, but at least there will be tangible evidence of your extra time in school.

Sincerely,

Shonda

What are your fears about graduating and getting out there? Maybe we can offer some solutions. Leave a comment.

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