5 Signs College May Be a Bad Financial Decision
Written by
Cynthia Measom
Edited by
Ashleigh Ray
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You’ve likely already heard various reasons why you should go to college, including that it puts you on the path to a career, makes you more marketable as a job seeker and sets you up for higher earnings.
Even so, attending college isn’t for everyone. Here are five signs that college may be a bad financial decision.
You Don’t Know What You Want To Study
Getting a college degree for the sake of getting a college degree is not a smart choice. If you’re not sure what you want to study or get a degree in, you could waste money taking classes you don’t really need — especially if you don’t visit with an academic advisor.
Considering the average cost of a college credit hour ranges from $161 at a two-year, in-district public school to $1,642 at a four-year, private nonprofit college, according to CollegeBoard data, you could easily waste thousands of dollars per semester.
Plus, if you declare a major only because you must do so to continue — which is typically after your sophomore year in college — that doesn’t mean you’ll ultimately get a job based on your degree. In fact, 1/5 of recent-college graduates have been unable to find a job related to their field of study, according to a Resume Builder study.
Your Career Path Doesn’t Require a College Degree
“If you have a clear career path in mind that typically does not require a college degree, such as certain trades or entrepreneurial endeavors, investing time and money in a college education might not provide a significant return on investment,” cautioned Chuky Ofoegbu, founder of Sojourning Scholar.
“Additionally, if you have the opportunity to gain experience and skills through on-the-job training or apprenticeships in your chosen field, this practical experience could be more valuable and cost-effective than a college degree.”
The Cost of College Outweighs Potential Future Earnings
The average student loan debt balance is $37,718, but it could be much higher depending on how much money you borrow and how much interest accrues over time.
“The cost of attendance relative to potential future earnings is another critical factor to consider,” Ofoegbu said. “If you are pursuing a degree in a field with limited job prospects or low starting salaries, the burden of student loan debt may outweigh the financial benefits of a college degree.
“It’s important to research and realistically assess the earning potential in your chosen field and weigh this against the cost of education, including potential student loan interest over time.”
You’re Not Academically Prepared or Motivated
College is not for the faint of heart. Among those seeking a bachelor’s degree for the first time, over 25% drop out, and of all undergraduate students, up to 40% drop out, according to the Education Data Initiative.
“If you are not academically prepared or motivated for the rigors of college coursework, you may struggle to complete your degree, resulting in wasted time and financial resources,” advised Ofoegbu. “College requires a significant commitment and work ethic, and lacking readiness can lead to poor performance or dropping out, both of which have financial implications.”
Your Personal or Financial Obligations Are Overwhelming
Attending classes and completing coursework can be quite challenging, and if you already have time-consuming or mentally stressful obligations looming, you could end up failing your classes and wasting time and money.
“If you have personal or family financial responsibilities that require immediate attention, the opportunity cost of attending college and not working full-time could be too high,” warned Ofoegbu. “In such cases, it might be more financially prudent to enter the workforce immediately and consider higher education options at a later time when you are in a better position to afford it.”
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