John Stossel took another shot at education but this time at our institutions of higher learning. In a 20/20 segment earlier this month it described a bachelor’s degree as one of the most overrated products in America. BoardBuzz wondered if John Stossel could possibly be right?
And the answer is: of course not. BoardBuzz feels for Rachel, Kris, and Walter, who were highlighted in the report because they had earned a college degree while taking on large debt only to take low paying entry level jobs. It’s both sad and scary but is this the norm or the exception?
If John Stossel and the other “reporters” over at 20/20 had done a halfway decent job of researching this report, they would have found years of research that show these three are the exception rather than the norm. But even if they just looked objectively at the information in their report they would have found that a college education is far from overrated.
For example, throughout the report they say it is a myth that students with a 4-year degree make $1 million more in their lifetime than someone who doesn’t go to college. They base this on the experiences of these three graduates as well as a quote from education consultant Marty Nemko who said:
There is no more misleading statistic that I could possibly tell you about because it includes superearners, billionaire college grads who skew the average.
However, Mr. Nemko provides no basis to back up this claim. Maybe superearners, like say the former richest man in the world Bill Gates, skews non-college graduate earnings up? So maybe the gap is much bigger?
What Mr. Nemko could have done is look at median earnings–which limits the effects of the so-called superearners- instead of average earnings. This report by the Bureau of Labor Statistics did such a comparison and shows that workers with a college degree earn more than $20,000 a year more than high school graduates. It is also worth noting that high school graduates are twice as likely to be unemployed as college graduates. Keep in mind, too, that these do not include those workers who went on to earn professional degrees like doctors and lawyers — those Suze Orman suggested may be the only ones who really benefit from a college education.
Furthermore, they report that Economics Professor Sandy Baum agreed the $1 million figure was inaccurate. They report that in her study she estimated it was about half. BoardBuzz isn’t great at math but half of $1 million is still $500,000. So, even for those students who took on $100,000 worth of debt were likely to earn that back 5 fold. Doesn’t exactly back up the report’s claim that college doesn’t pay.
Keep in mind however the report did make some good points with which BoardBuzz agrees:
- College costs are increasing at a far greater pace than inflations putting many low and middle class families in too much debt, if they can afford college at all.
- The best colleges for you or your child may not be the most expensive. So your low cost local public college may provide you with as good an education as those expensive Ivy League schools at a fraction of the price.
- Not all students need to go to college to be successful. Many students can lead very successful lives and earn good money by foregoing college and learning a trade or gaining skills in field they enjoy.
So here is some advice from BoardBuzz:
- For Rachel, Kris, and Walter: Hang in there and keep looking for that job you always wanted. Although times are tough now, over time you’ll find that your college education was well worth the investment.
- For those in high school: Decide whether college is right for you.
- For those who wish to go onto college: Select the college that will best help you meet your goals after college but within your price range. Maybe consider going to community college for 2 years before enrolling in more expensive 4-year institutions.
- For those who don’t want to go to college: Learn a trade or obtain marketable skills in an area you are interesting at either a trade school, community college, or through an apprenticeship. You can be just as successful after high school as those with a college degree.
- For John Stossel: Give up on stories on education. And BoardBuzz suggests you read this story from CNN to see what a good story on whether college is worth the price of admission looks like.
I’m another one of those “exceptions” that BoardBuzz doesn’t want to acknowledge. I have a bachelor’s degree AND a teaching license, yet in 10 years since graduation I’ve been unable to find a teaching job in my field. I’m also making much less than I would’ve if I hadn’t gotten my degree. I also have enough course work for a master’s, but none of my college has translated into more money. I even had an employer tell me that I was particularly UNvalued specifically because of college–they favored military people, though, with no college. BoardBuzz is just wrong–there are tons of us out there, but this country has been so brainwashed into thinking that education is the key to success, that it’s political suicide for them to admit the truth. I know lots of college graduates who can’t find any work that a high school dropout isn’t already doing. If the educated really do deserve more money, then why isn’t there a law requiring it? I’ll tell you why: because most employers don’t agree with it, that’s why. I wish Stossel had talked to me, as I would’ve given him even more ammunition against the college industry. My daughter is also unemployed (she has a bachelor’s degree AND a paralegal degree, but can’t get a job). Stossel was absolutely right, and if any of you think that a college degree warrants a job, then why don’t you hire all of us who bought into this idea? Even better, why don’t you either pay off our student loans (which haven’t and won’t pay off–who has the time YOU suggest that these three unfortunate folks wait around for it to happen?), or get a law passed saying that anyone who can’t get a job IN THEIR MAJOR FIELD within 5 years of graduation, doesn’t have to pay back their loans? I mean, if a college education is all you think it’s cracked up to be, employers should be waiting at every college graduation with jobs for all. Are they? Before you make assumptions like you’ve made in this article, maybe you should be one of us. You were just lucky, I guess. That’s not where the rest of us are.
Overrated product … I find myself especially sensitive to this point of view that John Stossel has brought to the forefront. As of today I am unemployed. I sensed it was chancy to sign on with a government contractor who cared about one thing … how much profit can we make selling you to the government? My college degree and a thesis short of a masters did not matter at all. I found what mattered most was a good credit report for contractors to obtain levels of Security e.g., Confidential to Top Secret in order to sell you to the government. I found that the government doesn’t particularly care about Degrees either. I found many government employees working at high levels of the GS rating with only a high school diploma. However, my first job right out of College was for a government contractor who again didn’t care much that I had obtained a College degree. Actually networking landed me that job. It didn’t correlate with the Business Management Degree or the Paralegal Certificate that I had earned. My boss said I hired you before when you didn’t have a degree … but you had experience and always did a great job. So, about ten years later I met up with some of my college class mates and they also had a degree in hand, working for the Military. Their chief complaint was that thier Degree did not make a difference. What they were looking for was a promotion and/or better leverage to obtain other jobs within the Military. The College Degree just wasn’t working well for them. My daughter with some college but without a degree landed a $70k job with AT&T. That was more money than I have ever made on any one job. Now, my granddaughter who sings and writes well is preparing to become a college student. What I gather from the College v. no College debate is that the College Degree is one tool to use out here in the world of work. It cannot solely, on its own, magically land you a great job. I do think that certain disciplines lean more readily toward a quicker hire for jobs in IT, Engineering, Teaching, Law & Medicine, i.e. All other jobs supporting the economy can very well be accomplished straight out of a good high school education, especially government jobs. Even with all that said I do believe in a College Degree. I worked hard to get one and it did open up another way of thinking. However, I can see why the College Degree overrated debate came about. It seems that everyone who wants a Degee, can get into debt and get one … it makes getting an undergraduate degree somewhat less valuable than it was historically when only the affluent and rich classes of the population could even be allowed to obtain a College Degree. One would greatly help oneself when he/she works and makes use of a business benefit e.g., college tuition assistance. It would be ideal because you will end up with experience, money and a degree in your pocket. Then one can continue on … open to more opportunities that dictate that one must have a degree … which will put you in a smaller pool of competition for some occupations. A final point, College Tuition Loans should be acquired only as a last resort. Scholarships and Grants are probably the best help one would ever get to further one’s education.
A scholarship you may like:
Bridgestone Safety Scholars Contest (Deadline: July 1, 2010)
Scholarship is open to legal permanent residents of the 50 United States and District of Columbia, ages 16 through 21. Website: http://www.safetyscholarsvideo.com/
Help Johnny Scholarship (Apply After: June15, 2010)
This $5000 scholarship is available to any student that is 19 years or under, as of October 25, 2010 and is renewable. Website: http://www.studentscholarships.org/helpjohnny.php
National Foundation for Women Legislators (Deadline: July 30, 2010)
If you are a female High School junior or senior, class of 2010 or 2011, you are eligible to participate. The seven scholarship winners will receive a $3,000 unrestricted scholarship.