Is College Worth the Cost?

A guide to deciding if college is worth paying the pri¢e.

Is college worth it? 

That is the question that many people are asking themselves in an age where the cost of getting that coveted degree is higher than ever.  Just a couple of decades ago, it seemed that a small part of the population held a college degree. Today, it seems like almost everyone is going after one.  I believe that going after a college degree is something that you should consider for yourself.  However, I do want to say right on the outset that I strongly believe that the financial cost of going after a college degree alone should not hold you back.

College is, no doubt, very expensive.  The average cost of college at a public university for the 2012-2013 academic year for students who do not receive grants or scholarships went up almost 4% (3.8% to be exact) to a record number of $22,261 (that's tuition + room and board).  That's just one year!  After four years of going to college, that number approaches $100,000.  However, the average student goes to college for more than four years.  In fact, it is not uncommon now to see students in college for FIVE years or more.  It took me seven years to finish my undergraduate degree due to a change of majors from Architecture to Economics.  Being cost conscious I started at a community college before transferring to a four year university in California.  However, once I transferred, I found that I needed about four years to finish my program of study.  Upon graduating, I had around $55,000 in undergraduate debt.

Many people are starting to say that "college is not worth the cost."  While that may or may not be true, I truly believe that there are few excuses today not to go to college.  While some people do well without a college degree, the bone rattling fact of the matter is that a college degree is a necessity in today's modern world.

]First, many jobs are not even going to look at your resume if you do not have at least a two year degree.  Face it, employers want educated individuals working for them.  It is not uncommon to see a retail store demanding that all applicants at least possess a bachelor's degree.  While I find this absurd, the reality is that is what they want, and they can demand that if they so choose.  Further, if you want to move up the 'corporate ladder' as many do, you are going to want to be better than the rest.  This doesn't always mean having a degree (plenty of people succeed without degrees) but it means that if you don't have one, it's going to be a lot harder.

Is it worth the price for that four year degree?

In the end, the price of a four year degree is a necessary evil, and the schools know it.  They raise their rates for one reason: they can.  A college degree in today's world is a lot like water.  No matter how much one charges for water, people will buy it to survive.  While a college degree is not necessary for survival, the fact of the matter is that a college degree is almost necessary to compete.  If you want to thrive in this world, you might want to put B.A. or B.S. behind your name. 

What about graduate school?  Is it worth the cost?

That depends.  It can be.  Many people find that they are not happy with their degree and want to do something new.  Graduate school gives you that opportunity.  Further, graduate school puts you that much further than your competition.  However, keep in mind that it may be worth it to hold off a bit on graduate school.  This is due to the fact that some employers do not want to pay the higher wages that graduates with M.A.s and M.S.'s demand.  However, employers are often impressed when they hire a student that says that he/she is planning on graduate school in the future.  The same rings true of law school, which is often a very impressive endeavor, and going after an MBA. 

Here are some tips as far as keeping your student loan debt low:

*Don't buy into the college culture of big money and living larger than life.  In the end you will be living small due to your huge debt.

*If you can do without something, don't buy it.  Bring your own lunches and forgo the expensive restaurants that are probably everywhere on your campus or around it.  Believe me, it's worth being frugal in college. 

*Live somewhere inexpensive.  Consider a non-trendy neighborhood and share an apartment.  If you rent your own apartment with more than one bedroom, consider renting out the spare room.  Sublet during the summers if you go home.  http://www.roomorama.com has made me thousands of dollars.

*Do not rent textbooks, instead, buy them used and try to sell them for more than you bought them for.  I did this and was able to keep my textbook costs low and oftentimes make money.

*For entertainment, go to free events.  Examples include concerts provided by your school, movies in the park.  Volunteer if you are bored.  It looks great on a resume and provides you with some awesome connections.  Also, Church is a great way to meet people and give something back.

*Keep subscription costs low.  Magazines should not be opened unless you never paid for them.  That doesn't mean stealing, instead that means hanging out in the library if you want to read one.  No matter what your teacher says, you do not need that Wall Street Journal subscription.  Do you know how many classes I took as an Economics major that said you had to subscribe to that paper?  I never subscribed and never needed to.  If you live in New York, San Francisco, or somewhere similar you can find them in the garbage in the subway.

*If you have a bus line that is near your house or if your college is within walking distance and you are taking out loans, you have no right to own a car.  I do not say this to be mean or sound like your mother, but the truth is that car costs are expensive.  Gasoline, insurance, upkeep, and the like is more than you want to be dolling out.

*Your cellular phone should embarrass you.  In other words, get an Obamaphone if you can.  If not and you feel the need to own one, get the cheapest one you can find.  Net10 and Trackfone are both cheap and have plans at as little as $10 a month.  If you want to call someone from your home, use Google Talk or Skype.

*You only need one computer for your whole college career.  I understand that PCs suck, so this is where I recommend something more expensive.  A mac is a good option.  It does not have to be a laptop and it should not be expensive.  Consider a used or refurbished mac.  Do not upgrade it and never think of material items as something to make you look cool.  You are in college to learn, not to show off.  If you want to show off, show off by getting good grades.

*Food stamps are an option in the summer, but rarely during the months that you are a full time student.  There is no shame in getting them if you qualify.  I have been on and off of them during my college career and they have helped me save a lot of money. 

*When grocery shopping, do not buy expensive prepackaged food.  You should NEVER go into Whole Foods as a student.  Trader Joe's is alright, but realize that it can be expensive.  Stores with a large percentage of people on Food Stamps are usually good.  Also, consider farmer's markets.  Buy a LOT of vegetables and fruit when they are in season.  Forgo on anything that you have trouble reading.  If it is written in french, abstain.  Abstain from alcohol.  It has no place in the diet of a student.  It's expensive and is in no way, shape, or form good for you.  Focus your time and attention on doing things that are healthy, such as jogging, exercise, yoga and meditation.  All of those things are free.  Alcohol and drugs are not.  They will destroy you.  You are going to college to become smarter, not grow dumber.

*If you want to travel, do it on the cheap.  Traveling is a great way to learn.  Studying abroad will probably destroy your wallet.  Instead, sublet your apartment and spend a month somewhere bone cheap.  Mexico, Thailand, India.  Those places are cheap.  You can spend a summer in India for far less than you can in many places in the United States.  It will open your mind and impress people.  Study Buddhism and immerse yourself into the culture.  Do not go to Senor Frogs, do not swim with dolphins.  Instead, ride the buses, get an international student ID card and visit cultural sites that give discounts, and do not let the touts rip you off.  Stay away from hookers, drugs and stray dogs.  This stuff is so basic it's almost embarrassing to have to type it.

*Amazon.com is a great way to get cheap stuff.  So is the library.  CDs and books can be found at the library.  Some libraries allow people to download free music.  For example, the New York Public Library allows one to download three songs a week for free.  Take advantage of it.  They have a good selection which includes a lot of new releases right when they come out. 

*Netflix streaming is a great way to have access to movies for cheap.  It's only around $8 a month and has everything you would need to watch.  Do not buy cable.  If you don't have a television, don't bother getting one.  Everything non-academic that you need to do can be done on your computer. 

*Furnish your place by scouring the free section of Craigslist.  Ikea should be on your list of last resorts.  Never shop anywhere for furniture or household goods that is located in a high real estate area of the central city.  If you are a student and taking out loans you have no business buying anything from Crate & Barrel, CB2, or Restoration Hardware.

These lifestyle tips are good to practice even if you are no longer a student.  I have seen many people who complain about debt and yet they do little to keep it under control.  There are so many ways to save money and live a fun, fulfilling, and rich life.  If you want to do it, you can be frugal and go to college and end up spending less than many people spend in their day to day lives without going to college.  The same can be said about graduate school, medical school, law school, and MBA programs.