Jul 24 2008
Don’t believe the hype. Shop Around!
Interesting correlations exist between the housing crisis and the emerging crisis in education. Variable interest rates can be the downfall of just about any unsuspecting borrower who believes taking a risk at the beginning of the borrowing term is worth it because of all the potential that lies ahead. Those who bought a home or went to college on borrowed dollars are faced with serious financial consequences.
Both housing and education accrue in value over time. Clearly the difference between housing and education is that once you have an education nobody can take it away. Choosing to make such a large purchase is rarely an easy decision, but societal and economic pressures can push along a hasty decision. There are plenty of homes on the market and innumerable banks to loan money for mortgages, so why don’t young people take more time in deciding where their educational dollars will be spent?
The value of an education can be measured in many different ways. The quality of professors, the amount and quality of resources to students, faculty and staff as well as the facilities and general stature of the school amongst its peers. But what exactly differentiates between a college that costs $45,000 a year and a state school that runs somewhere between $10,000 and $20,000 a year?
Quite possibly it all comes down to reputation. A truly motivated and gifted student will excel in virtually any setting that he or she is placed in. The student’s circumstances depend on how much money they will need to borrow, if any and which opportunities will be presented to them in their current location and educational setting.
The average student doesn’t have the opportunity to go through their undergraduate education for free. The tuition and resources available are therefore translated into a defined price tag that needs to be compared to other schools. Just because a school with a “better” reputation sends out their acceptance letter to an eager incoming freshman, does not mean that their reputation alone should equate to “buy, buy, buy!”
It is a tough realization to face when a recent graduate realizes that he or she has spent too much money on their education simply for the sake of living in a certain part of the country or for the façade and reputation associated with the college’s name. College tuition and all the costs associated with a good education can potentially be the best dollars that anyone can spend in their lifetime, but those dollars should be spent wisely in order to ensure the biggest return on investment throughout a lifetime.
