Wednesday, March 30, 2022

A College Degree Without All the Debt

 

Laurence J. Kotlikoff, a Harvard-trained economist currently teaching at Boston University, recently suggested that borrowing money for college is a waste of money. Kotlikof recites the downsides of incurring massive debt to finance a college degree (you have to pay it back, with interest) and cites some statistics about the average amounts of debt college students graduate with (an average of $33,000 debt upon graduation, with over 15% owing more than $50,000).

 

But, to me the far more interesting part of Kotlikoff’s article is his review of creative options to obtain a value-laden college degree with little or no debt.

·      Find a cheap college.

·      Go to community college for three years (cheap), and finish your last year at a better (more expensive) school.

·      Work for a few years before starting college, then apply for grants and scholarships on your own financial situation (presumably less income than your parents’ situation).

·      Attend community college, while also attending inexpensive online certificate programs. That doesn’t get you a college degree from the elite institutions, but it certainly gets you good credentials for the job search. Harvard, MIT, Stanford and many others offer these kinds of certificate programs.

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