What student loans?

 There are a lot of misconceptions floating around about college and student loans.

From my experience, here are some of the truths and myths about the current state of education.

1. Fact - Not everyone is cut out or should go to college.  Students who want to explore a career in the service industry - Construction, mechanics,  food preparation, etc., should consider alternate schooling.  For those with the idea of owning their own business; community college courses in business would be cost effective.

2. Fact - if going to college, you should be aware of the average salary of graduates with that degree, not just the highest potential.  Many generic degrees are not worth the loans taken out - specialist degrees are usually more valuable, but again you need to look at the job market 5 years down the road.

3. Fact - an Ivy League or Major College probably will not teach you much more than what you will learn elsewhere.  However, the pressure and the connections you make may put you ahead of someone who goes to a different school.  Maybe unfair, but real.  A liberal arts education at an Ivy League school will get you a better starting salary and more connections, but remember the return on investment may take a decade or more when considering loans.

https://www.usnews.com/education/best-colleges/paying-for-college/articles/2018-09-10/how-much-is-a-liberal-arts-degree-from-the-ivy-league-worth

4. Fact - There are loans and there are loans - just like the subprime loan scandals of the 2000's, you can get hooked on loans with high interest - remember, any loan in the beginning is mostly interest up front.  The fact that many loans are deferred until you get out of college just postpones the inevitable.  Start putting money away to pay off the loans as soon as you can.  Even that part time cafeteria job will help.

4. Myth- Student loan forgiveness programs benefit the wealthy.  The reality is that the wealthy do not have student loans.  Do you think the son or daughter who are heirs to the Johnson and Johnson or Frito Lay empires had any student loans?  When you can afford $400K Mercedes and Porsches, do you think 50K a year in tuition is a burden?  The logic is that loans go to the people who cannot afford college without them.  Unfortunately, these are the same people who do do have the connections to get into good jobs.  So even after getting out of college, the majority with a degree and student loans, still have a tough road ahead.  There will always be exceptions; however, you have to look at the numbers.

So a serious look at the problem involves:

1. The cost of College
2. Who Should go to College
3. How should we pay for it
4. Should the Government be involved.
5. Should more businesses include College as part of their training

Until these are looked at we are just kicking the can down the road