Does college guarantee a Return on your Investment or is it the new Buyer's Remorse?

Those of you who are homeowner’s are familiar with the term “buyer’s remorse.” That resounding pang of anxiety you experience as you sign the $150,000 mortgage and wonder , “What if something happens to me? What if I lose my job? What will happen?”

Buyer’s remorse is applicable to all big ticket purchases, including a college education. Although, most people haven’t begun to think of the expense of a college degree in this way quite yet; I predict it won’t be much longer before they do. On average, students today spend anywhere between $75,000 and $150,000 on a Bachelors degree (we’re not even going to mention grad school).

At some point, parents and students should ask themselves questions similar to those above: “Will I be able to find a good paying job? How long will it take me to pay my loans? How long will it take me to pay my loans once I figure in living expenses? What are the projected earnings from my chosen profession and how does that affect the time it will take to pay my loans? What about interest rates?”

Hindsight is 20/20. There’s much I know now that I wish I’d known when I signed my loans without so much as blinking an eye 10 years ago. Many are related to these questions and impact my present quality of life. Everyone’s entitled to a college education, but at what cost? Insurmountable debt? I think I was one of the few individuals who actually hoped computer systems would crash during the Y2K hysteria. I particularly hoped the data base containing my student loan records would crash into a smoldering heap; no such luck.

Traditionally, a college education was the means to securing a better life for oneself. Just talk to some recent and not so recent grads about the quality of their lives once deferment days are a halcyon bygone memory. If your job is paying you $37,000/year before taxes, factor in living expenses and the minimum monthly payment you’re capable of making to a lender, does that seem better than a debt free life?

Forget about owning a home and making a mortgage payment on top of it. Not to mention, many of today’s students are in extreme credit card debt by the time they graduate. Factor that into the loans and it’s enough to give anyone pause.

I’m not suggesting people shouldn’t attend college. I’m explicitly stating the system by which people save, plan and pay for college needs to dramatically change. The way students choose majors and develop their career track needs to become a primary focus.

Guidance counselors, student advisors, financial advisors and financial aide officers need to have a working knowledge of these issues. The playing field has changed dramatically from just 15 years ago. I strongly encourage you to do your homework before signing on the dotted line.