College-goers: Look before you leap
The alarming rate at which the national student loan
debt is increasing indicates the pressure on college graduates for finding
long-term work and current students to finish degrees.
While the job market has become more competitive in
recent years, students are finding they need to explore all their
options—schools, degrees, internships, the MACRAO agreement, scholarships, relocation—upon
enrollment because mistakes and misinformation cost a great deal of time and
money in the end.
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Every Monday and Wednesday morning this fall,
students registered in GPLN 215 have gathered at Eastern Michigan University
for an introduction course in urban and regional planning.
For those who don’t know, urban planning is listed as
one of the greatest jobs for the 21st century by several
outlets—Money Magazine, CNN and US News & World Report. The selections were
based on employment growth, salaries and job satisfaction.
To understand how much students in GPLN 215 knew
about their desired careers, they were recently asked to participate in an
anonymous survey.
The questions were as follows: 1) What are you
seeking a degree in? 2) What do you plan to do with your degree? Do you have a
specific job in mind? 3) If your career requires you to relocate, do you know
where? Could you see yourself relocating in the future? 4) How much money do
you intend to make?
The results were grim. Out of 24 students who completed
surveys, two thirds were undecided about a degree (meaning, they either categorized
themselves as ‘undeclared’ or listed several different ideas). Almost half
miscalculated their future salaries (some were off by as much as $20,000).
Finally, the majority expressed interest in moving out of state but only six had
locations in mind.
Research and graduates agree that when it comes to decisions about school, students need to do their research.
Read up on colleges
Tuition and fees at community colleges are about 64 percent lower than those of 4-year universities.
At one time, the term college bound referred
to students at 4-year institutions with ivy-covered buildings. That
image has changed, though.
Community colleges, for example, are attracting
people from all backgrounds, with all skill levels. With reputations for accessibility,
affordability, and diversity of programs and services, community
colleges are enrolling nearly half of all U.S. undergraduates.
“I wish I would’ve studied more before I got to
(Berklee College of Music) and then I could’ve spent less time there and less
money,” said Travis Root, who spent his first two years at Lansing Community
College (LCC). “Or, I wish I would’ve looked into some other schools like
McNally Smith, which is a little cheaper. That’s where (my friend) is going and
he’s saving $8,000 a year.”
The average in-district cost per
credit hour at community colleges is $85.76, while average out-of-district cost per credit hour is
$141.87. Tuition and fees are about 64 percent lower than those of 4-year
universities. Michigan has 28 public community colleges. Nationwide, the total is 1,132.
But besides cost
efficiency, why is this so important now?
People who don’t get some
kind of postsecondary education are quickly falling out of the American middle
class. At least 57 percent of
job openings from 2006-2016 in the United States are projected to require some
postsecondary education, according to the Bureau of Labor Statistics. There are
two main reasons for this: Many lower-skilled jobs are being shipped overseas,
and computers do a lot of the mundane, repetitive work now. What's left? The complex
tasks that require people to work together and solve problems.
Peter Klebba, a graduate
of Kettering University, promotes community colleges as well.
“It’s a cheaper way to
get the same class—it’s a fraction of the cost.”
But the 26-year-old is
still glad to have graduated from a well-known institution.
“I knew how much it was
going to cost, but it’s worth it,” Klebba said. “I’m at the point where my
bosses could start offering me two weeks of vacation, dental, medical… Big-name
colleges cost a lot, but the name is a golden ticket.”
Klebba earned his bachelor's in chemical engineering and recently became employed with Chrysler.
In all cases, it’s best
to inquire about several schools, then narrow down the list based on personal,
but realistic expectations. Talking one-on-one with an adviser or an upperclassman, scheduling campus tours and researching the MACRAO transfer agreement are just a few ways of how someone can find out what a college is really like. Click here to enter The College Board, a website for college prep.
Research your future career
Classesandcareers.com, for example, is a useful
online tool. Operated by educated researchers and reporters with backgrounds in
writing and teaching, the website promises to provide students with information
to make informed decisions about their career.
Click on the different pages of links and viewers
will land on topics such as, “10 Ways Moms Can Make Online College Work for
Them” and “5 Reasons You Should Have an HTML Resume.” The following excerpts
come from “42 Fun & Interesting Statistics for College Students:”
The average number of college graduates per year is 1,750,000.
Close behind, the number of dropouts is 1,125,000. A student’s first job out of
college will typically earn them $20 per hour ($9 per hour more than what they earned
while in school). Graduates earn $20,000 more per year than people with high school diplomas. The
average income of an associate’s degree graduate is $37,000 per year. A bachelor’s
degree graduate earns $47,000 while a master’s degree graduate makes
$49,000, and a Ph.D. degree graduate makes $51,250.
“Not
everything was always clear to me when I was going to college,” said Karly
Miller, a former student of Baker College. “I wish I did a lot of things
different.”
Ever wondered
the value of certain popular jobs? The average income of a psychologist is $82,386/yr.
Social workers and business administrators make half that—$49,573 and $43,022.
A computer network administrator generally makes $52,525/yr.
For more
detailed information, look up the Bureau of Labor Statistics:
Every year, the U.S.
Department of Labor releases a report called, National Occupational Employment
and Wage Estimates. These estimates are calculated with data collected from
employers in all industry sectors in metropolitan and nonmetropolitan areas in
every State and the District of Columbia.
First, the
information is sorted by occupation, with major groups in bold. For example, if
someone scanning the chart saw “internist” and wanted to know more, clicking on
the link would open up an occupational profile explaining everything from the
definition of an internist to employment per 1,000 jobs to mean hourly/annual wage.
Industries with the highest level of employment for the occupation are
available, as well as a color-coded map (part of a geographic profile that
points out where internists are most employable).
“I’m not
too big on moving out of state,” said Eric Christie.
It’s been
almost a year since the 22-year-old graduated from Specs Howard and he’s
worried relocating is the only way he’ll find work in his career, graphic
design.
“I’ve
emailed people at school and no one has really helped,” Christie said. “I don’t
really know what to do. I didn’t know it was going to be this hard.”
Don’t get swallowed by loans
According
to the Chronicle of Higher Education, nearly 20 million Americans attend
college each year. Of that 20 million, close to 12 million—60 percent—borrow
annually to help cover costs.
“When I took out (student loans) because everybody
just said, ‘Don’t worry about it. Take them out. Go to school,’” said Root, who
still owes close to $70,000. “And then I got out of school and I was like, ‘Now
what do I do?’”
The average college student’s debt after graduation
is $23,700. Average monthly payments are $432.
“If your parents can pay for college, then let them
do it,” Root stated. “You really need to look into scholarships, and student
loans should be an absolute last resort. The interest rates are crazy. By the time
I get done with the 10-year program, I probably will have paid $200,000.”
Student loans account for the most common form of
increasing debt among ages 18-24. Conversely, there is $902 billion in total
outstanding student loan debt in the U.S. today. In fact, $85 billion is past
due, reported the Federal Reserve Bank of New York (FRBNY). Approximately 37 million student loan
borrowers have outstanding student loans.
What this means for future borrowers? Like students
whom have borrowed in the past, they can expect tough rules for paying back
student loans, and penalties to be even worse.
According to FinAid, a student guide to financial
aid, if students do not make any payments on their federal student loans for
270-360 days and do not make special arrangements with their lender to get a
deferment or forbearance, their loans will be in default. Defaulting on student
loans has a number of serious consequences including, the student can be sued
for the entire amount of their loan, wages may be garnished and federal and
state income tax refunds may be intercepted. Also, defaulted loans will appear
on a credit history for up to 7 years. Students who do not repay their loan in
full or make arrangements to repay what they already owe cannot receive any
more federal financial aid.
“Loans are a necessary evil,” said Klebba, who took
out close to $100,000 in loans. “They make it possible for students to get
where they need to go outside of their financial reach but, until you can pay
that debt off, you’re financially chained.”
Being about 10-20 years younger than the rest of his
siblings and one of the few in his family who attended college, Klebba said he
knew nothing about student loans until he was already racking up bills.
“(Student loans) should be a high school class,”
Kebba. “More people need to learn how they work and to not take them out
excessively.”
Manage your budget
Internships, according to the latest statistics, are
the smart way college students can prepare themselves for the line of work
they're most interested in. It’s a way to work and learn. Internships tend to have more flexible schedules than
normal jobs but only some are paid.
The most obvious advantage, however, is the
potential for full-time employment following graduation. According to the
National Association of Colleges and Employers (NACE) new graduates who had
participated in internships did far better in the job market than their
classmates who did not have experience.
In 2008 employers extended job offers
to nearly 70 percent of their interns, up from 57 percent in 2001.
Oakland Livingston Legal Aid usually sees about 36
interns a year.
“We hire mostly from (Michigan State University)
College of Law and Cooley Law School since they’re in our area, but anyone with
a legal background is eligible,” said Office Manager Jane Martineau.
The interns work 12 hours per week over two
semesters unpaid.
“Usually people just want the experience,” Martineau
said. “Sometimes we’ll offer part-time jobs after the internship, but it
depends on the number of interns we have. If we have 36 interns working on the
hotline, we don’t need them. But (rehires) are good for training.”
Some tips for finding internships are: narrow down
the field, choose a location, have a resume ready, get ready for the interview,
get necessary papers organized, and most importantly, create a realistic
budget.
Studies show a majority of students at four-year colleges
say they routinely feel at least a little worried about having enough money for
the week. In fact, 84 percent say they need more than one
source of cash to keep up (Stanford University). Seventy-eight percent of undergraduates work while
they are enrolled, spending almost 30 hours per week at work (The
American Council on Education). Keep in mind, though, working too much is one of the leading reasons for high drop-out rates. With the cost of living on the rise, and parents unable to help as much as they once could, students need to spend as little as possible (on everyday items as well as student loans) before their in over their heads.
Most scholarships, even though they take some time to fill out, are worth $2,000. According to recent findings, applying for at least 10 scholarships will save students more time in the end and pay off their student loans quicker than working full-time.
“I think that’s why I couldn’t find an internship while I
was in school—I was so busy working,” said Karly Miller, a former student of
Baker College who first studied vet technician at MSU. “I took out $14,000 of loans and when I had to quit going
for personal reasons, I was forced to keep up with payments,” Miller stated. “I
called the loan company up, told them my situation, and got them referred. Now
that I have a reliable car and everything sorted out, I’d love to go back and get
a business degree.”
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Looking back, people have often said the “four years of college” are all a part of a learning experience.
However, Education Trust found those four years are quickly turning into five--only 37 percent of first-time freshmen who enter four-year bachelor's degree
programs actually complete their degrees within four years. Another 26 percent
take either five or six years, and the remaining 37 percent either don't get their
degrees at all or complete their coursework in more than six years.
Most students are changing their major at least once during their time at
college. The reason
behind this is that they're often pressured into choosing something they might not
be sure they want to pursue. Rushing decisions never helps either.
It's no secret, mistakes and misinformation play large roles in the explanation behind students borrowing loads of money from loaners every year. Over time, these choices force graduates to pay off debt slowly, and some have even committed suicide.
"It's a part of growing up," Miller said. "You have to figure out what's best for you but do it in a way that'll make sense for your future because once you get into it, you can't really take it back."
