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Higher education is becoming worthless

By
Services for Real Estate Pros with Luxury Real Estate

A while ago I stepped back from writing about luxury real estate to Colleges are bleeding students dry and they will fall if they do not change their ways. Photo copyright of adobemac on Flickr.discuss a terribly destructive force that threatens to destroy families and make people miserable: debt. I would like to discuss something that I find to be just as dangerous as addiction to debt - the illogically high cost of earning a college degree.

I read a potentially explosive story on CNN yesterday about a bubble in the cost of higher education that makes the real-estate bubble or the tech crash in 2000 look tame in comparison.

I'd like to start by talking about my experience in college. When I attended college not too long ago, tuition and book costs were already getting out of hand, although they were manageable. I attended a community college in Washington state for my first two years to obtain my Associate's degree. I had hoped to transfer to the University of Washington to complete my Bachelor of Arts in Communications, but the cost was prohibitive and, even though I graduated with honors and on the Dean's list, I still had to wait a long time to enter that college.

Instead, I decided to accept a scholarship at Brigham Young University in Provo, Utah and that turned out to be a very smart decision. In addition to the positive environment that beautiful campus offered, the cost of attending there was relatively low compared to my other options and I was able to pay for my entire education without going into hardly any debt. I am one of nine children, and my parents wisely told me that I would have to find a way to pay for my education by myself. Through a great deal of hard work and tight budgeting, I made it through without having to burden my family members.

During my time in college, I kept my mind focused on why I was there. I wasn't there to waste time or take frivolous classes; I was there to finish my degree as quickly and as meaningfully as possible so that I could put my skills to use. I am grateful for the opportunities my college degree has opened for me. However, education costs are rising so fast that there might not be much reason for people to attend college in the future.

The door is closing on educational opportunities at colleges because of greed. Photo copyright of Ben Zvan on Flickr.I would probably be sympathetic to colleges if the reason for the rise in education costs was because they were improving their education techniques or doing other things that would warrant such cost increases. But the truth is that this is not the case. Many colleges are increasing tuition costs for no other reason than because they want more students to apply. It seems to defy logic, but it's true. Colleges appear to be playing a game that they will eventually lose. When they raise prices, people assume that they must have done so because they are more prestigious or offer better learning opportunities and so the colleges usually receive an increase in applications. This pattern cannot last forever.

Education is extremely important. It allows people to rise from humble circumstances and it also helps them make informed decisions about where they want to go in life. By making education worthless, colleges are doing a great disservice to their students. By worthless, I mean that the cost far exceeds the rewards. Greater cost does not always mean greater return on investment.

Increases in healthcare, energy and real-estate costs don't even come close to touching the rise in education costs, as you can see in the graph in the CNN article. Knowledge is power, and if the cost of education becomes so high that that the benefits of earning it become small in comparison then we will be in big trouble. I am not suggesting that college degrees be easier to obtain or that unqualified people should receive an education without working hard. I am suggesting that colleges are in danger. They spend much of their increasing amount of money on frivolous amenities that do not improve their educational services or make their students' diplomas any more valuable. Posh restaurants, nicer dorms and other foolish perks are unimportant for students who are simply hoping to receive the education they need to progress in life.

At some point people are going to realize that an education is not worth living under such an extreme amount of debt to obtain. When that day comes and colleges must cut their tuitions drastically, many cherished institutions will most certainly be unable to cope with this dramatic shift and they will come crashing down. Destroyed by their own pride and haughtiness. They will discover that they have spent their money on things that have no value and they are unable to offer students what they promised: an honest education.

I dislike focusing on something so negative as this, but I think it deserves special attention. Thank you very much for your comments. Feel free to let me know what you think of the state of higher education.

The photo of the bleeding wallet is from www.flickr.com/photos/adobemac/161319144 and it is the copyright of adobemac. The photo of the door is from www.flickr.com/photos/ben-zvan-photography/468487548 and it is the copyright of Ben Zvan.

Comments (10)

Veronica DeCarolis
Weidel Realtors - Flemington, NJ

This will become a really hot topic in the next couple of years as parents and students go into debt and the students get jobs well below their expectations.  I can see a doctor paying $200,000 for his education because there is an excellent chance of his earning this back over his career in a relativley short amount of time.  But the colleges are churning out thousands of communication majors and  I think they should be advising these students that their chances of being the next Dan Rather are slim.

I'm glad to see you choose real estate as your career and wish you the best of luck. Thanks for writing.

Veroncia

Aug 22, 2008 05:40 AM
Stephanie Ballou
Keller Williams Coastal Realty - Dover, NH

You have a VERY valid point. And nicely put. I know many recent college grads who are having a difficult time using that college degree. Their complaints of paying for it are heightened.

Aug 22, 2008 05:44 AM
Robert Lockard
Luxury Real Estate - Seattle, WA

Dear Veronica,

Thank you very much for your comment. That is so true. Doctors, lawyers and other well-paid professionals can afford to spend a great deal of money on college, but teachers and public-service workers do not earn enough money to make college a viable option. Colleges need to be more responsible and stop charging ludicrous amounts of money for the same quality of product. I hope that things will change soon.

Sincerely,
Robert Lockard

Aug 22, 2008 05:46 AM
Heather OnullSullivan Canney
HeatherO Inc. - Apex, NC

I had a professor that told me once that I needed to decide whether I wanted a degree or an education. I can only assume that many are over paying simply for the name on the degree, and are really just interested in getting through, and getting out w/bragging rights.

I haven't compared college tuition's lately. I can only assume that they are  probably rising unnecessarily in many cases, just as our local school board cries every year that they need millions more than the year before while they build schools that look like they were built more for bragging rights or to win a design award than to provide a cost effective, functional and reasonably comfortable location for learning.

You don't appear to be old enough to have a family yet. If not, just wait! In NC currently I can send my kids to most of the public universities for less than the cost of childcare!

Aug 22, 2008 05:49 AM
Robert Lockard
Luxury Real Estate - Seattle, WA

Dear Stephanie,

Why thank you. It saddens me to see honest people taken advantage of. College students need skills, not useless amenities. Thanks for your wonderful compliment, by the way. :) Have a great day!

Sincerely,
Robert Lockard

Aug 22, 2008 05:53 AM
Robert Lockard
Luxury Real Estate - Seattle, WA

Dear Real Living Partners Triangle,

So true. Colleges today are trying to ride on the coattails of their impressive heritage without actually proving they are worth the tremendous cost. Most are not worth the cost. In the CNN article, they found research showing that there is very little difference in earning power between people with similar intellect and skills who graduate from expensive or less-expensive colleges. The value is just not there and something must change soon for expensive colleges to continue operating.

By the way, you're right. I am not yet a father, but I hope to be soon. :)

Sincerely,
Robert Lockard

Aug 22, 2008 05:58 AM
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

A truly excellent post, with very important concepts.     Nothing to add -- you said it all, and I hope your post makes an impression where it counts.

Aug 22, 2008 06:47 AM
Robert Lockard
Luxury Real Estate - Seattle, WA

Dear Li,

Thank you so much for taking the time to add your kind comment. I really appreciate that. I hope that this post will help make a difference for people seeking a college degree and wondering if the added cost is worth it. It's definitely not. I hope you have a great day.

Sincerely,
Robert Lockard

Aug 22, 2008 07:04 AM
Anonymous
Bradley

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Set your goals

Choosing a school to attend online has also become a very simple task. All you have to do is search for schools in your area, apply, and they will send you all the information you will need to get on with your education online. The reason you will want to chose a school in your area is because some of the courses you may take will required you to meet once or twice for exams or group projects.. ………..

<a href="http://www.sangambayard-c-m.com">higher education</a>

Apr 09, 2010 01:26 AM
#9
Anonymous
Bradley

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Online Bachelors Degree


To the adult educator all this means a need for more efficient and effective courseware. We need to put our creative thinking hat on and challenge ourselves and our employer to pilot new approaches. This is not an impossible task, it is a new reality. Greater productivity brought by education and innovation are the only weapon against off shoring. Yet this weapon is a hidden “diamond in the rough”, in George French’s words, as it might bring great new opportunities………….

<a href="http://www.sangambayard-c-m.com">higher education</a>

Apr 14, 2010 01:52 AM
#10