By Rohan Gupta
Although few would argue that investing for college is a poor investment, the recession is diminishing the value of that investment. The current downturn in the economy makes the future of many college students seem grim and these students now ask themselves whether paying the high costs for college is worth the price.
According to the Bureau of Labor Statistics, "In July, the unemployment rate for college graduates was 4.7%, up from 2.8% a year earlier." Also, according to the National Association of Colleges and Employers, "employers expect to hire 22% fewer graduates from the class of 2009 than the class of 2008." A study by the National Bureau of Economic Research stated in 2006 that, "those who graduate during a recession tend to start at smaller and lower paying companies or firms, forcing them to change jobs more frequently than those who graduate during better times." The study also found that "college students who graduate during a recession suffer an average 9% reduction in annual earnings initially, and that the discrepancies do not disappear until about 10 years after graduation."
Though this seems to be very disheartening news, University administrators cannot let these frightening statistics force students to abandon their education goals. They must find ways for students to receive a useful education at a practical price and provide tools to help the students survive in the modern career market. Shane discussed in his latest post about the possibility of state-run higher education in America. If there is a possibility of having free colleges in America, then there must be a possibility of significantly reducing college costs. If the federal government can spend billions of dollars on businesses, then it can surely spend that capital on higher education.
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