Choose A Major
If you’re thinking about college, recently enrolled, or attending, you’ve probably thought a lot about majors. University small talk frequently begins with, “What are you studying?” Your parents probably pressure you to find and/or settle on a major; graduate in four years, they stress. From advisers to counselors to friends to acquaintances, the onslaught for selecting a major can be daunting. Unfortunately, it’s not the most important question to prevent and tackle student loan debt.
The Secret To Less Debt
How do you prevent or lessen student loan debt if you’re footing the bill?
The secret is simple: Project your future income.
More and more students are entering into college – oblivious of the financial ramifications. As Congress finds “solutions” to our $1.2 trillion student loan debt crisis, students are floundering. Now more than ever, it’s important to know how to stem the tide and beat the debt. But the key is knowing what your major is worth.
Frankly, it sucks to think about majors from a financial, future-income perspective. It’s not sexy. Universities often depict a wealth of opportunities and encouragement for any field of study. They’re selling studies irrespective of salary. This can be dangerous.
The reality is that universities are selling a degree – charging thousands – without telling you the whole picture. Do your homework before settling on your dream degree.
Example Degrees
Thinking about a degree in philosophy? Starting median salary is $39,900.
How about psychology? Prepare for an abysmal $35,900.
What about financially-oriented degrees like economics? An impressive $50,100.
And the major that takes the top spot: Chemical Engineering. Right out of college, you can expect to make about $63,200.
Next time someone says, “Follow your dreams!” Ask yourself, “How much will this cost me and what will be my future salary?” If you graduate with $80,000 in student loan debt, it’s best to have a good job lined up. My recommendation: You could find part-time and full-time jobs on job search sites. Otherwise, the crushing, choking student loan debt will ruin those idyllic dreams.
Source: http://online.wsj.com/public/resources/documents/info-Degrees_that_Pay_you_Back-sort.html
Yeah, my husband has a Ph.D in engineering, and we’re still swamped with debt. He’s one of the lucky ones. He got a job in industry in less than a year, unlike most of his cohort who are either making 30K as post-docs or who are unemployed more than 12 months after graduation.
Now foreign students aren’t doing so badly….. But, if you’re an American, good luck!
While it is great advice to tell students to predict their future income, it is actually very difficult to predict what your income would be. Left out of many job sites and wage statistics, is how long difficult it will be to find a job in the field you have chosen to study, and how the image of the university you attended will effect your job search. After all, the philosophy student from Harvard is probably much more likely to find a good paying job after graduation, then a philosophy student from an open-admissions school. While a student can think they are making a smart choice and choosing a degree with a high return on investment, there are so many factors that can throw off their calculations.
A more accurate tool to predict return on investment for college degrees is greatly needed…something that is easy for students to use and will provide trustworthy information.