High School Graduates College and Career Plans Disrupted
Fifteen million plus young Americans are graduating high school and making plans for their future. For many of them, the last two years have been challenging. Nearly 1 in 3 seniors, or 28 percent of the 2022 class, have altered their plans for college and a career path.
In an effort to bolster community colleges and other institutions' efforts to deliver more equitable education and training, the U.S. Department of Labor has put in place a $50 million funding opportunity to help people in marginalized and underrepresented populations overcome barriers to career and technical education programs they need to be connected to well-paying jobs.
The choice between a four-year college degree and a technical college may be a tough one but looking at the pros and cons of each can help graduates make the right career choice. A technical college focuses more on specific skills needed and is a more direct path to that high-paying career.
Cost is another factor. The average cost of obtaining a degree from a trade school is $33,000 in contrast with an average of $132,000 for a bachelor's degree, including tuition fees. This can make an enormous difference to your financial future, as your student debt load will be much lower.
Parents should investigate all aspects of co-signing a student loan before they sign. Talk to a financial advisor, so you have covered all the angles. Use this education planner to help you figure out how much you will need to save for a college degree.
Earning capacity is another factor to consider – a degree from a university will take a minimum of four years. At a technical school you can graduate in as little as one year and make anywhere from $30,000 to $60,000 per year – and even more after a few years in your field.
“Although the class of 2022 are graduating into a hot employment market, that may not be the case in another four years,” points out Robert Cavanaugh, Senior VP Investments for David Lerner Associates. “The US is currently experiencing rapid inflation and that definitely affects the demand for employment.”
According to Monster’s Economist Giacomo Santangelo, to fight inflation unemployment must go up. Already the Federal Reserve has raised interest rates to curb inflation, so there is no guarantee that in four years you’ll be entering a very strong job market.
The combination of a lower debt load, entering a hot job market, and a good salary sooner certainly is an attractive path to a sound financial future.
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