Degree Selection
On the surface, I admit that the selection of degree should not have an impact on one’s ability to pay back one’s student loan, but it most decidedly does.
There was a saying that it did not matter what you got your degree in as long as you got a degree. That may have been true at one time. At that time, perhaps 3% of the people who graduated high school got a degree (and there was a decidedly lower high school graduation rate than there is now as well). Today, some estimates point to a 25% level of high school graduates obtaining a degree. Now, the degree most decidedly counts all too often. While employers want a well-rounded employee who has a decent exposure to liberal arts classes, they want them to have a degree that can be translated to the entry-level position that person is applying for.
So many people are obtaining degrees in disciplines that are generally not marketable to such a point that, when they do obtain a position, it is quite often in a position that is well below their skill level. The often obtain clerical, trainee, and apprentice positions simply because they have degrees that do not apply to the business world. Sadly, some even end up as first-line sales positions (store clerks, etc.) because it is the only thing that they can get.
The question is why. And the answer is really simple. Because they wanted to. They did not take advantage of their higher education opportunities and instead exercised the opportunity to do what they wanted, regardless of the outcome. Instead of minoring in what they had an interest in, they majored in it. Sadly, they often majored and minored in disciplines that were unmarketable. I guess that would be cool, except that they were doing on borrowed money that they would need to ultimately pay back — and they had no clue as how to do so.
Think I am wrong?
Here are the degrees with lowest employment rates as of 2021 (high unemployment rates from 5.0% to 7.7%):
- Physics
- Mass Media
- Miscellaneous Technologies
- Anthropology
- Ethnic Studies
- Computer Science
- Political Science
- Sociology
- Fine Arts
- Interdisciplinary Studies
Now, how about money. The average starting salary for a college graduate in 2021 was $55,560. These degrees paid a little less. None over $35,000:
- Family and consumer sciences
- Anthropology
- Early childhood education
- Theology and religion
- Social services
- General social sciences
- Leisure hospitality
- Performing Arts
- Psychology
- Liberal Arts
Now for the double whammy degrees. Those with low employ rates and low incomes:
- Anthropology
- Mass media
- Fine Arts
- English language
People, people, people: there is nothing wrong with studying any of those studies. Not at all. In fact, some of them are laudable (early childhood education stands out), but care must be given here. How are you going to get a job if you major in Music, Film Studies, or Anthropology.
And, most germane to this post, what is your flipping plan on how to pay back your student loans? Hey, the taxpayer has footed the bill for you to study Ethnic Studies; you have to pay them back!!!
