Professor says that college degree may not be worth it
Two weeks ago, I wrote on GetRichSlowly.org that college is a big, fat, hairy rip-off. Now, here's another "-off" (in this case, Dr. Laurence Kotlikoff) arguing that the price of a college diploma may exceed its value. In a video interview with TechTicker, Kotlikoff says that a plumber will have more money than a doctor, factoring in the cost of getting a medical degree.
The problem is, according to Kotlikoff, “We have a lot of kids who are borrowing a lot of money that they can’t discharge through bankruptcy who are ending up basically in debtors prison for the rest of their life because they potentially made the wrong choice when it came to education.”
Indeed. Here's a shocker: The value of all student loan debt in America now exceeds the value of all credit card debt. Simmer in that thought for awhile.
Yes, a college degree can be an asset, especially in a tough job market. But not at any price, and for every job. The teacher who borrowed tens of thousands of dollars to get an Ivy League degree isn't going to get paid more than the teacher who attended State U. As with all purchases, be a smart consumer.
Robert Brokamp, CFP®, is the senior advisor for the Fool's Rule Your Retirement service.