University Degrees-Are you getting a B.S., or getting "BS'd"

You pay $80-$120K for a university degree and end up paying over $200K after interest. But, does your job justify that financial sacrifice?

Transcript

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Welcome to our first episode of Hot Takes and Cold Coffee, where the takes are a little bit too hot and the coffee is usually a little bit too cold. Today's episode, we're going there. We're talking about universities charging outrageous amounts of money for degrees that might not pay off. This one might ruffle some feathers, but I'm your host, Amy Judge, and I'm just gonna say it. Look, if you're paying six figures for a degree, the least you should expect is, I don't know, a job that lets you pay that back before retirement. I mean that feels like a reasonable ask. So let's start with the obvious. College is expensive, like ridiculously expensive. We're not talking tight budget expensive. We're talking this will follow you for decades expensive. Tuition, housing, books, fees, it all stacks up fast. And suddenly you're 22 years old with 80, 100,000, and sometimes even 200,000 in debt. And that's before interest. Don't even get me started on the interest. Here's the issue though. Universities are pricing degrees like they're all equal investments, but they're not. A degree in engineering or nursing, historically, those have clear job pipelines, but some programs not so much. And yet they cost the same or close to it. So let's be fair. What do we mean when we say a useless degree? Because that term gets thrown around a lot and it's kind of harsh. A degree isn't inherently useless, it's more about the return on investment. If you graduate and there's no clear job market, or the jobs available don't pay enough to justify the debt, that's where the problem is. We're talking about degrees where people graduate and end up working jobs that don't require that degree at all. Or worse, they're underemployed. Meaning they're working but not in a way that uses what they studied. And the universities, they're still collecting full tuition regardless of the outcome. So here's where things get a little uncomfortable. Universities market these degrees hard. It's all, you know, follow your passion, do what you love, the money will come later. And that all sounds great until the loan payments hit. And look, passion matters. No one is saying it doesn't, but passion doesn't cancel out debt, right? There's a difference between encouraging exploration and selling a dream without explaining the risks. And let's be honest, 18-year-olds aren't exactly known for making good long-term financial decisions. I mean, you mean to tell me someone who just got their driver's license or maybe shouldn't be signing up for $100,000 in loans? It's a wild concept, I know. So who's responsible here? The students, the university, or the system? And honestly, it's a mix. Students should do research, they should look at job placement rates, average salaries, demand in the field. But universities also have a responsibility to be transparent. If only 10% of graduates in a program land a relevant job, that should be front and center, not buried in some report that nobody reads. For example, research shows that a degree in DEI will start off around $45,000 and it has a very high return on investment risk and will take you about five to ten years to feel financially comfortable. A business degree will start off at around $55,000 to $75,000, has a moderate risk ROI, and will take you approximately three to six years to feel financially comfortable. A nursing degree will start you off between $65,000 and $85,000, has a very low risk ROI, and you will feel financially comfortable around year two. But then there's the bigger system, student loans being handed out like candy with very little consideration of whether the degree will pay off. It's almost like the risk is entirely on the student while everyone else gets paid up front. So let's talk about what happens after graduation because this is where it really hits. You've got your degree, your diploma, your photos, and then reality sets in. Job hunting, rejections, maybe landing something unrelated just to make ends meet. And those loan payments, they don't care what job you have. That's the part people don't talk about enough. The emotional weight. So what's the solution? Because just saying college is a scam isn't helpful. And college isn't inherently a scam, but blind commitment to any degree at any price, that's risky. Options matter. Trade schools, certifications, community colleges, apprenticeships. Even taking a gap year to figure things out instead of rushing into a major. And if you do go to college, be strategic. Look at outcomes, not just interests. Ask questions like what jobs will this lead to? What's the average salary? How competitive is the field? At the end of the day, education should be an investment, not a financial trap. And universities, they need to be more honest about what they're selling. Because right now it feels like some degrees are priced like luxury items, but deliver like a clearance rack. And that might be the hottest take of this episode. Alright, so that's it for our first episode of Hot Takes and Cold Coffee. If you've got thoughts on this, agree, disagree, somewhere in between, we want to hear it. Next time we might need something a little lighter after this one, or maybe we'll double down. Who knows? Until then, stay caffeinated and keep your takes hot.