Should You Go To College Or Dropout?
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Today we discuss the subject of college and whether you should go to college or not. More people than ever are loaded up on massive amounts of student loan debt. Some are even wondering if there is a student loan debt bubble. Yes. A lot of high schoolers wonder if they should go to college or not.
Many other folks who are in college wonder if they should drop out of college. See the question is better answered when we know your personal situation. How bad do you want to go to college? Why do you think you need to go to college? Are you taking out debt to go to college or are you paying out of pocket for college tuition? Are your parents paying for your college education or do you have a scholarship? These are all highly relevant questions when wondering if you should go to college or not.
Over the past few decades, the price to go to college has gone through the roof all while what you get as a return on investment for college has gone down massively. People are tens of thousands or hundreds of thousands of dollars in debt when they graduate college and that sets you up super poorly to invest in your 20s/30s. Your 20s and 30s are prime years for investing and if you are just paying student debt off, that is a horrible situation. Some college students think they will graduate with a job that pays $100,000 plus per year and that rarely happens. What is your opinion on college?
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Well guys, I want to go ahead and start out today’s video by looking at a little something ridiculous. Okay, we’re talking about college. Today we’re talking about should you go to college should you drop out of college, more student loan borrowers carry six figure balances.
Alicia Bookman, student loan balance is nearly a half a million dollars the share of borrowers with balances in the six figures is on the rise around 178,000 students graduated owing more than $100,000 in 2015 2016. academic year, up from 51,000 in 2003, to 2004.
And I think that is a good place to start today’s video. Okay, I know a lot of folks are wondering, should you go to college should you drop out of college? I know that’s for my younger viewers. A lot of you guys that are in high school right now, which are not very many of you guys that watch the channel veteran High School.
By the way, make sure you leave a comment. If you are in high school and you watch this channel, that’s really cool. But even some of my folks that are in college wonder, should I drop out of college? Am I doing the right thing by staying in college and things like that. And then some of my older viewers, some of you guys that are maybe in your late 30s or early 40s.
And you have kids that are either in middle school right now or approaching High School. Some of you guys wonder, should I try to push my kid toward college? Should I not? How should I approach and whatnot. And I just want to give you my personal opinion on this.
I’m someone that did go to college for about two and a half years and I went to City Colleges is called or community college however you want to call it and basically how I was able to afford that is one community college is much cheaper than going to university.
So that’s first and foremost, it’s like 20% of the cost of going to university is like a community college, at least in Arizona, I can’t tell you if it’s like that in every state. But in Arizona, it’s like literally like 20% of going to a university.
So I was able to pay it out of pocket. But on top of that, I also had like a half scholarship from the track team because I was on the track team in college as well. So I had a half scholarship there. So I was able to pay out of pocket. And then also there was a government plan at that time that he basically gave you back like up to it was either 2500 or $4,000 per year basically at the end of the tax year.
So technically, I went to college for free for my two and a half years. And then I dropped out. So I didn’t go after a bachelor’s degree or master’s degree, it was just time for me to kind of like move on to the next thing I kind of had vision, I felt like I learned what I needed to learn in college, it was time to move on.
Okay, so I just want to tell you that as my personal experience in college, okay, so let’s think about this for a minute. They’re kinda like four ways on how your college can get paid for you, it’s going to be one of these four ways, because we know college is very expensive, right college is very expensive, especially if you’re talking about going to university, and you’re talking about going to university for all the years, it’s very, very expensive.
So that’s getting paid one of four ways. The first way it could be scholarship, and that means like you’re really high ranking student or something like that, and you basically get a scholarship so you can go to college for free. Okay, that’s a very select few that are that smart that they can get a scholarship to pay for school or your super athlete, and you’re a great football player or a basketball player.
And you get college paid for you know, that’s not the situation for most people. It also is possible that maybe there’s some sort of government program so you can get financial aid so actually your your college can get paid for by the government, but also that’s a very select few as well kind of get that type of financial aid.
Okay, so for most folks, you know, scholarship, you know, or a financial aid that’s going to pay for your full college or something like that, for most part like is it’s kind of unrealistic, okay, so number one, not most people are going to have that. Number two, your parents pay for your full college.
That’s another select few people out there, like the amount of people that their parents can pay for their college, you know, whether college costs, you know, $40,000 or $80,000 $150,000, depending on what school you go to the the amount of parents that can afford to do that very slim.
I mean, if you just look at like how many of the baby boomers are near broke, like it’s pretty much like half the baby boomer population is like broke. And when you think about something like that, you think how the hell could like a baby boomer like have paid for their kids to go to school.
It’s just unrealistic. Okay, so most parents like 95% plus of parents are not going to be able to pay for their kids college, okay, maybe the top 5% or 10% of income earners or wealth earners would actually pay for their kids school or something like that.
So that’s a very unrealistic possibility as well. So these two are not very realistic. Okay. These two are what happens most of the time, okay. One is you pay out of pocket out of your money, maybe you have a job and by having that job, you make enough money to go ahead and basically pay for that school, which I was able to do in community college.
Okay, so if you’re talking about going to university and paying for that, you’re going to need to probably a pretty good job to go ahead and pull that off. That’s going to be difficult to pay for university out of pocket, not impossible, but definitely very difficult. Community College a lot easier because it is so much cheaper.
Okay, so that’s a possibility to pay out of pocket. And then the last one, like we just looked at is taking out debt to go ahead and go Try to get this this education that hopefully is going to propel you in life and hopefully going to make you way more money than what the debt costs.
And basically, if you didn’t have that degree, okay, so let’s think about each of these individually is break these down. Let’s talk about should you go to college based upon one of these four situations, you have scholarship and you feel like going to college I say go to college, you’re getting your time paid for, okay, the school is getting paid for a lot of times scholarships even cover some things like room and board, things like that.
And if that’s your personal situation, and you want to go to college, like I say, go to college man, you got a you got a free four years of college where you can learn and do things like that and have fun, or whatever it is you want to do, it makes sense to go ahead and do it if you’re in that situation.
Okay, number two, if your parents are going to pay for it, and you want to go to college, once again, I highly suggest you go ahead and do that. And if you have a clear vision, you’re like I want to go after and get this degree, and I really want to go to college is something I want to do in my life.
And your parents are willing to pay for that. And they’re all for it. And they got the money to pay for that. Go ahead, like go ahead and do that man, that makes perfect sense. Like you want to go out and do it. And it’s getting paid for these two? Absolutely.
Without question, go ahead and do it. Now. On the flip side, if you know you don’t want to go to college, you know, you don’t want to go to college, and you feel like there’s something bigger you need to pursue that college will distract you.
Okay, that if you feel like college is going to distract you and you have something bigger you need to go after right now, even if your parents are going to pay for an even if you have a scholarship, honestly, you probably need to put college to the side and say I need to just go after this and forget college.
Because if you go to college, or you continue to go to college, and there’s something a bigger opportunity, you felt like you could have gone after like, like, think about all the super influential, you know, business people in the tech industry, the Zuckerberg and the Bill Gates and Steve Jobs and all those folks who ended up dropping out because they had something going and they were like.
I need to go after this fully. And we go through a cross a ton of people that are not nearly as popular as those guys. But they went ahead and made the decision that like I have to go after this. Now. Let me go ahead and drop out of college and pursue this idea or dream. I mean, imagine if Zuckerberg didn’t drop out, he’s like, you know what, we’ll put Facebook to the side for now.
And we’ll do it someday I gotta finish college right now, like, I probably wouldn’t have been that smart, right? Imagine if no Apple corporation or Facebook or Microsoft, like imagine if there were not these sorts of companies like their lives want to change, change and industries would have been way slower.
So sometimes if you know this, something you got to go after, like, you just got to go after it. Even if you’re in one of those two situations, paying out of pocket, this is where it starts to get tricky. If you’re really focused on college and you feel like it is definitely worth your time to get that degree or just take those courses in general, you’re like, I really need this course over here.
I really need to learn about this over there. And you can pay for out of pocket, I say go ahead and go to college. Okay. Now once again, if you’re really unfocused, and like I don’t know, if I want to go to college, I really don’t want to go to college, you can probably just invest that money or go ahead and just save that money for now at a particular time.
Rather than pay out of pocket all your money, which is generally going to be all your savings, you have to pay toward college for something that you’re not even sure you want to go to, or you don’t want to go to. Okay, so paying out of pocket only makes sense. If you’re for sure want to go and then debt.
I honestly think if you have to take out debt to go to college, I say don’t do it. I say don’t do it. I don’t care how bad you want to go to college and how bad you want to get the college experience and things like that. If you have to take out debt to go to college, I say don’t do it, the return on investment for 98% of people is not going to be there.
Okay, college is generally going to cost you 10s of 1000s of dollars, or in some folks situation hundreds of 1000s of dollars of debt. And that debt needs to be paid back a lot in a very quick amount of time that debt collects interest. Okay, so basically what you have happened let’s say you take out debt, let’s say you graduate college, you’re 26 years old, okay?
You went maybe got a Master’s or something like that was your master’s usually takes most folks six or seven years to get so you’re 26 maybe 27 years old, you got your master’s degree, you probably got at least six figures in debt 102, maybe $150,000 in debt, and then you get out of college and you get a job making let’s say you make like 70k a year which is a good you know, starting salary coming out of college.
Most folks rate when they come out of college don’t get six figure jobs. It’s just facts. Even if you have a master’s degree, more than likely you’re not getting a six figure job right when you get out of college because there’s a limited amount of six figure plus jobs.
And you have a lot of people you’re competing with for those six figure plus job. So let’s say you get out of college and you do get a good job and a good job is 70k per year, like that’s not doing bad. Okay? So you get this job, you’re making 70k per year, okay? Now, first and foremost, if you’re making 70k Okay, you got to think about taxes first and then we’re thinking about what’s leftover at the end the pie.
So if you have a job making 70k depending on where you live, you’re probably in a pain bout 20 to $25,000 in taxes, okay, that could be federal taxes or state taxes. Some states have taxes as well here in Nevada, thankfully enough, we do not have state tax, but depending on where you let’s say just say it’s 20,000 Okay, and that’s a low number in my personal opinion.
So that’s gonna leave you with $50,000 at the end of the pie, okay? Now you also have your rent, you have insurance, you have a car, you have all those sorts of things, right? And you probably want to get a place your own because you’ve been living with people for probably so long, because you’re probably sharing a house with a bunch of people while you were in college, or you were in a dorm room or something like that.
Probably want to place your own. So needless to say, I would say your expenses to just live a decent lifestyle most places is probably going to be let’s say, 35,000. Okay, and this is not this is not including, like, if you have kids or anything like that. Okay, so 35,000.
So this leaves you with $15,000 at the end of the pie, okay, $15,000 after your expenses, living a decent lifestyle, no kids and you know, relatively low taxes compared to some parts of the country. So you have $15,000, okay, where do you think most of that extra $15,000 is going to go, okay, it’s gonna go right out toward paying this debt right here, because you need to pay that debt balance down.
And so if you got 100 $150,000 in debt, you’re gonna be working for probably a decade just to maybe, hopefully, pay that debt off, you’re gonna be working for a long time, you’re gonna probably be into your mid to late 30s, before you’ve even paid down that debt. So let’s say you’re 38 years old, okay, you’re 38.
And finally, you have paid off your debt. Okay, great. Now you can start investing, Oh, my gosh, you can actually start buying stock, you can actually start buying index funds, you can actually buy real estate property or something like that, at 38 years old. And I’m not saying 38 years old is old by any means.
But I can tell you, it is a lot more fun to be investing in your 20s getting all that experience the funneling as much money away as possible, toward going ahead and investing, okay. And that is where the real money is made. Because even if you don’t make 70k per year, let’s say you make 50k per year, because you didn’t get your college degree, which by the way.
I’ve seen people that have not gone to college and are making ridiculous amounts of money. Okay, I’ve seen people that have dropped out of college and are making ridiculous amounts of money. I’ve seen people that have gone to college in or working as an assistant manager at the local McDonald’s. Okay. And on the flip side, I’ve seen people that didn’t go to college are no broke.
And I’ve seen people that have gone to college and are doing very well for themselves. So this whole thing about you have to go to college to like, make a lot of money or something, it’s just completely not true. Let me just put that out there. Okay.
So if I’m looking at this, I’m saying, you have to be completely out of your mind to go ahead and take out massive amounts of debt. So you can hopefully maybe get a good job. This is absolutely insane. Guys, in your I mean, some people are in their 40s, some people are in their 40s still paying student loan debt.
And if you look at my generation, the millennial generation, I can promise you a lot of these folks are going to be in their 40s and maybe even 50s still paying off that debt guys. And that’s just absolutely ridiculous. Okay, so if you’re going to college and you’re going to go on debt, it’s probably not worth it, you’re probably buying into the biggest bank scam of all time, which is you need to go to college to get a good job.
And then people realize that’s not true, and nothing’s guaranteed, and oh my gosh, you just took out $100,000 in loans that you have to pay interest on. And that basically takes you out of investing in your 20s and 30s. And that’s just absolutely ridiculous, guys. So for most folks out there going to college is honestly not the way to go.
Unlike conventional wisdom will tell you that everybody needs to go to college, I’m gonna tell you, most folks should not go to college. And if you’re a select few, and you know exactly what you’re going for, and you know exactly what you’re going to do, and you’re going to be a doctor or something like that, where you have to go to college, you have no choice, okay.
That probably makes sense, especially if you’re going to be able to pay it out of pocket or your parents are gonna pay for your own scholarship or something like that. It makes sense in those situations. But I can tell you, if you’re going after some BS degree, I’m not even talking about the crazy degrees.
So though the theoretical dancer whatever that people always like to make fun of, okay, there’s all those degrees, you know, history or all those sorts of degrees that people love to make fun of, you know, you took out all that debt, and you got that ridiculous degree, even talking about the Greek people think that’s smart, a marketing degree.
I’m going to tell you 98 99% of people that graduate with a marketing degree, a Bachelor’s in marketing, you don’t know the first thing about marketing in 2019, or 2020. Because everything they’re being taught is marketing in the past, and the whole marketing game has changed in social media came in and the way you market in today’s landscape is massively different than the way you would have marketed 10 years ago, 20 years ago, and especially 4050 years ago.
Which I’d taken marketing classes in college before and I can tell you, like almost all of the information was massively outdated and I went to college like 2008 through like 2010 Okay, so that was a long time ago, and even back then it was massively outdated.
I can only imagine now. So for most folks, it’s just not worth it guys, especially especially if you’re taking out debt. That’s just ridiculous guys. Thank you for watching and have Great Day