My Ssec Capstone Project College education looms magnificently in the thinking of both students and their parents since it has been perceived as an open sesame to a well-paying job

College education looms magnificently in the thinking of both students and their parents since it has been perceived as an open sesame to a well-paying job

College education looms magnificently in the thinking of both students and their parents since it has been perceived as an open sesame to a well-paying job. However, as compared to the past, recent reaping from the economic payoff for college as illustrated in different analyses has turned to be a long shot for most young people. Despite the existing belief that was long established by economists that people with college degrees averagely earn higher than those without, the reality in the contemporary seems to be the opposite. To become financially self-sufficient and secure a decent job in the US, one probably needs a post-secondary education with some sort of credentials. However, these credentials do not have to be a college degree. This being said, the statement that “Too many people go to college these days” seems a bit out of place.
Despite education to the American economy with an educated workforce branded an undisputed recipe for discovery, innovation, growth, and development. The reality has dawned that, many young people enrolling for college degrees in the past, it turned out that they were nowhere near well-paying and suitable jobs. It has been shown that half of the graduates have ended up either being unemployed or underemployed. Secondly, a quarter of all the minimum jobs in the US are held by college graduates. With the high costs of living, it has been statistically documented that 51% of the college graduates graduating in the contemporary times are making less than $35,000 (Belfield & Bailey, 2017). As a result, many of the students that are attending college are not being well served, it can be said that college education can sometimes be seen as oversold.
In the past, college was seen as the path to financial prosperity. Graduates waltzed from the college gates straight into well-paying and entry-level corporate jobs (Daly, 2018). This has changed over time. This is because, previous success of college graduates made the society to be obsessed with college degrees without any regard for cost or outcomes, wildly escalating college costs. Wages have remained steady and there is an unequal balance in graduates supply and the availability of suitable jobs. The availability of easy government-backed loans has led to uncontrolled borrowing fueling financial illiteracy among students and parents.
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References
Belfield, C., & Bailey, T. (2017). The Labor Market Returns to Sub-Baccalaureate College: A Review. A CAPSEE Working Paper. Center for Analysis of Postsecondary Education and Employment.
Daly, M. C. (2018). Raising the Speed Limit on Future Growth. FRBSF Economic Letter, 09.