Today's Colleges Students: A Nation of Boomerangs?

So I was looking for a topic today and stumbled on a Wikipedia article on the
Boomerang Generation. Unbeknownst to me, there is a large group of individuals from those born in 1981-1986 that are in financial straights. The reason why? Well, it seems college is to blame.

Apparently, many students are attending college and are paying absurd amounts of money in tuition and fees—check that—they are borrowing absurd amounts on money in tuition and fees to pursue their major. However, upon graduation the students end up with debt loads that rival home mortgages—forcing the student to move back home with their parents until the debt is paid off. A recent film, Failure to Launch, explores this concept. Note, however, that this is not to be confused with cultures where many children move back home specifically to care for their parents.

Truth be told, I think its unfortunate. People are brought up to believe that “if you just go to school, you can do anything!” Unfortunately, people are beginning to realize that you have to qualify that with some substance and some common sense. One should go to college to pursue knowledge, yes, but you should also be equipping yourself with the knowledge to succeed in our ever-flattening world. There are many people who went to college (and are going to college) who graduate and cannot find a job, or are underemployed—and are therefore not able to pay back all those student loans.

It’s a terrible idea to start your life in The Real World with debt you cannot pay. Many people unknowingly pursue careers that will be outdated and sometimes don't realize this when they trek to the Job Market after graduation. As I’ve said before, if you can imagine your career being digitized in the near future, you should probably find another career. Quickly.

Well, there are many of you (well, perhaps all of you) who pretty much cannot change the decision you made. But for the lurkers out there who may be at the college crossroads, take note. For one, you should try to avoid paying for college at all costs—unless of course you’re headed to med school. There are scholarships abound, especially for minority students. Secondly, consider going to school in-state, especially if you’re considering popular choices like English, engineering or the sciences. Going in state will not only save you a bundle, but you’ll be surprised that most employers don’t care if you went to an Ivy League or not. State schools are usually much lower in cost and provide you with the same level of educational experience without you having to sign your soul over to the Lending Mafias out there.

Finally, come to the realization that its getting competitive out there and you should be prepared. Many people boast that they’re “good at math” (as I have) yet they don’t cash flow their debt and income before or during college and wait for the post-graduation shock that their job offer won’t be high enough to cover debt and living expenses. Bill Cosby stated once that human beings are the only species that allows their children to come back to the nest to live. Understandably, some of us need to get back on our feet. However, remember that in your pursuit of education it’s important to crack a financial book along with your others to be well prepared once your leave the grad stage in May and enter the next Stage of life.

But perhaps you feel differently. Leave a note in the comment section, and let’s talk about it!

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Next Week: We put Personal Finance to the side to explore IRA/401(k)’s in detail. See you then.