June is high school graduation time. I am troubled by the story of a young woman who graduated from NYU with $97,000 in debt ("Another Debt Crisis is Brewing" The New York Times).
She now has a BA and may work 20 years to pay off her debt. Did she make an informed decision? The illusion that a brand name school has greater value than a public university enticed her into bondage. The university facilitated her debt, collected tuition, partnered with banks to get her in over her head. I thought America had outlawed indentured servitude. Her degree has given her some options and taken many away. Her life was mortgaged before she was competent to make long term financial decisions. Career decisions must now be made in light of unreasonable debt payments. She may not be able to afford graduate school, a car or health insurance. If she marries she brings her bondage into that relationship. Who will lend them money to buy a house? I see a similarity to sub-prime mortgages. Homeowner’s can walk away from mistakes leaving the bank their asset. With college debt you have to work it off.
We struggled over our children’s decisions about colleges; where to go and how much to spend. Some negotiations went well and others cost more than anyone wanted. My wife and I have our own bad memories. We had few choices after high school. We did not want to limit our kids’ options. They spent most of their early years in public but finished in private high schools, where our daughter’s art and son’s math and science skills were nurtured. I am a strong believer in public education. Like most parents there were contradictions when we focused on our own kids. We sent both to public universities but our son transferred out of engineering to a private college to get a liberal arts education and physics degree. We paid more. I’ve learned compassion for all parents negotiating finances with an 18 year old. Only after graduation does the student discover how much their degree is really worth.
College has many benefits. It is not unreasonable to acquire debt. My issue is one of proportionality. How much debt for how much education? What is the value of a brand name university? There are no simple answers. In a few situations the brand will open doors. For most it is a source of pride, a statement the family has moved up the economic and cultural ladder. The danger is buying the appearance of success with a credit card. Parents need to know how much employers care. Do we know where our colleagues went to college? Do we care? I respect co-workers for who they are and what they can do, not for where they come from or went to school. When I hire I note if someone has a degree. I value one’s willingness to have their perspectives challenged in classes and the commitment to complete what they started. Colleges offer a learners permit. One develops the ability to drive on the job.
Beyond the interview, I seldom remember who went to what school. I give more credit to communication skills and teamwork, the ability to build relationships and whether a person can add value to the organization. The college brand is personal, of value for social networking outside the job; a little like one’s religion. I respect it but will neither hire for nor discriminate against it. After the first job hardly anyone cares at all. We review employment experience, look at work skills and the ability to be part of a team.
The cost and benefits of college debt need to be discussed more openly. Universities and banks sell education and an illusion. It is time to name it. They will take money wherever it comes from. You cannot sell back your degree if it fails to bring in the salary you need. We all have responsibility here. We parents need to learn more how employment decisions are made, be prudent and help our teenagers make good decisions.
