I was reading various blogs and came across two stories discussing college degrees that I thought were interesting. It seemed like a theme that I had randomly stumbled across.
The first is an article by Eric Fry titled A College Education of Diminishing Returns
He tells the story of two high school graduates and one who chooses to go to college; while the other takes the money he would have spent if he went to college, but instead invests it.
The difference seemed interesting. as well his point that there is a point of diminishing returns for college degrees if everyone has one.
Today, more than 25% of Americans hold a bachelor’s degree – five times more than in 1950. But guess what? A bachelor’s degree ain’t what it used to be. The Law of Diminishing Returns is having its way.
Eric’s contention that government involvement via Sallie Mae of funding college degrees has
- inflated the price
- decreased the value to the market place
- unknown quality increase, as more degrees are completed / awarded
I liked his suggestion at the end of his article …
As a well-heeled acquaintance from Manhattan quipped recently, “Hey it’s gonna cost me $250,000 to send my kid to an Ivy League school. I’d rather just use the money to buy him a business, and let him figure it out in the real world.”
It’s definitely a unique take. And probably will allow the kid to learn more from real world experience and learn some self reliance, how to really deal with people and a better investment in case the business doesn’t do well. There should still be some assets to sell at the end of the process.
He has a bent that people who graduate from more technical schools had the best net annualized return on investments. Only one school was known for liberal arts; while six of the top 15 were institute of technology that specialized in engineering, science and/or technology degrees.
you’d be wise to select a degree that requires you to take courses that are always in high demand by employers – if you plan on getting a reasonably quick and decent return on your college investment, that is.
His perspective seems to be coming mostly from a ROI perspective; as well as finding a decent to well paying job after graduating. But in his comments he did suggest that someone pursue marketing if it is truly their passion.
From a practical perspective, I’d have to agree that technical degrees have a higher likelihood of finding a job. But there are other circumstances that are out of the control of recent college graduates i.e. state of the economy, and how likely businesses are to hire in a recession or the double dip depression that we are in the midst of.