What College Majors Are Worth the Money?

00:06:38
https://www.youtube.com/watch?v=MA0vDPrRhJc

概要

TLDRThe video humorously explores the high costs of college education and the implications of student debt. It discusses the average student loan debt, which is around $37,172, and the projected cost of in-state tuition for future students. The video examines the reasons behind rising tuition costs, including supply and demand, easy access to student loans, and increased administrative expenses. It compares the time it takes for various degrees to pay off, highlighting that engineering majors pay off the fastest in just 2 years, while others like psychology and arts take longer. The video also addresses the financial burden of graduate school, particularly for law and medical students, and offers tips for managing college costs, such as considering community college and exploring Income Share Agreements. Ultimately, it emphasizes that while financial considerations are important, students should also pursue their passions and interests.

収穫

  • 🎓 College is expensive, with average debt at $37,172.
  • 💰 In-state tuition for a child born today could reach $162,000.
  • 📈 Engineering majors pay off their investment in just 2 years.
  • 🕒 Communications majors take about 5.3 years to break even.
  • 🏫 Community college can significantly reduce debt.
  • 📊 Income Share Agreements offer a flexible repayment option.
  • ⚖️ Law school can lead to high debt with modest salary increases.
  • 💼 Medical school costs average around $200,000.
  • 💡 Shop around for universities to find the best financial fit.
  • ❤️ Pursue your passion, but be financially smart.

タイムライン

  • 00:00:00 - 00:06:38

    The video begins with a humorous exchange about the high cost of college education, highlighting the average student loan debt of $37,172 for graduates. It raises questions about the value of a college degree and the rising tuition costs, which are attributed to factors like increased demand for degrees, easy access to student loans, and rising administrative costs. The video emphasizes that while college is a financial investment, it generally pays off in the long run, depending on the chosen major. It presents statistics on how long it takes for various degrees to break even, with engineering being the most lucrative. The discussion extends to graduate school, particularly law and medical school, where the debt can be substantial, but the long-term benefits are still statistically favorable. The video concludes with practical advice for prospective students on managing college costs, such as shopping around for schools, considering community college, and exploring alternative financing options like Income Share Agreements. Ultimately, it stresses that while financial considerations are important, pursuing one's passion and making informed decisions can lead to fulfilling careers.

マインドマップ

ビデオQ&A

  • What is the average student loan debt for graduates?

    The average student loan debt for graduates is $37,172.

  • How much will in-state tuition cost for a child born today?

    In-state tuition for a child born today is estimated to cost about $162,000.

  • Which major pays off the fastest?

    Engineering is the most lucrative undergraduate major, paying off in just 2 years.

  • How long does it take for a Communications major to break even?

    A Communications major will break even on their investment in about 5.3 years.

  • What are Income Share Agreements?

    Income Share Agreements are a financing option where students pay a fixed percentage of their salary for a fixed period instead of taking a traditional loan.

  • Is community college a good option?

    Yes, community college can significantly reduce undergraduate debt and is a smart decision for many students.

  • What is the median salary for a general practitioner?

    The median salary for a general practitioner is $175,000 a year.

  • What is the average cost of medical school?

    The average cost of medical school at a public university is around $200,000.

  • How much debt do law students typically graduate with?

    Law students typically graduate with between $85,000 and $125,000 in extra debt.

  • What should students do to ease their debt burden?

    Students should shop around for universities, consider community college, and look into alternative financing options.

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  • 00:00:04
    Hey hun!
  • 00:00:04
    Whatchya doin?
  • 00:00:06
    Oh just nailing my most valuable possession to the wall.
  • 00:00:09
    Jazzy Bear!
  • 00:00:10
    No, not the dog.
  • 00:00:12
    My college diploma.
  • 00:00:13
    Oh, right.
  • 00:00:15
    Yep.
  • 00:00:16
    This little piece of paper cost me about $320 per square inch.
  • 00:00:20
    Wow.
  • 00:00:21
    That’s almost as much as a Manhattan apartment.
  • 00:00:22
    It does make you wonder...
  • 00:00:24
    I mean, would I be happier if I chose another major?
  • 00:00:27
    Or gone to trade school instead??
  • 00:00:29
    At least you’d know you can’t hammer a screw into the wall.
  • 00:00:33
    Huh.
  • 00:00:34
    I just thought it was fancy nail.
  • 00:00:37
    [MUSIC]
  • 00:00:49
    It’s not exactly a news flash that college is expensive.
  • 00:00:52
    Graduates our age have an average of $37,172 in student loan debt--and they have to start
  • 00:00:59
    thinking about their own kids’ college.
  • 00:01:00
    If Philip and I had a baby this year, at around 4% inflation per year, his or her in-state
  • 00:01:06
    tuition would run us about $162,000.
  • 00:01:13
    There isn’t ONE explanation why tuitions are inflating like a microwaved peep.
  • 00:01:18
    But there are some strong theories.
  • 00:01:21
    Supply and demand.
  • 00:01:22
    Over the last 40 years, having an undergraduate degree went from being considered an option
  • 00:01:27
    to a necessity, and the MORE people want something, the more the people selling it can charge.
  • 00:01:33
    Another theory puts the blame on student loans.
  • 00:01:36
    Wait..how does that make sense?
  • 00:01:39
    Well, they’re scary easy to get.
  • 00:01:40
    Colleges have no incentive to control costs because they know the federal government and
  • 00:01:45
    other loan agencies will keep fronting the money.
  • 00:01:48
    And finally, administration costs have ballooned as much as 60% in the last 25 years.
  • 00:01:54
    A lot of that gets blamed on perks that colleges are adding to attract customers--I mean, students.
  • 00:02:00
    Davidson College offers free laundry service.
  • 00:02:02
    Michigan Tech has an on-campus ski resort!
  • 00:02:05
    Of course, education is about more than just dollars and cents, but there’s no denying
  • 00:02:11
    college is a financial investment.
  • 00:02:13
    You’re paying all this money now in the hopes that you’ll be able to make it back
  • 00:02:18
    later.
  • 00:02:19
    So… will you?
  • 00:02:20
    For most people, yes.
  • 00:02:22
    The question is how long it will take, and that depends on your degree.
  • 00:02:27
    So which majors pay for themselves the fastest?
  • 00:02:30
    Let’s RUN THE NUMBERS!
  • 00:02:35
    We’ll start with the median income for somebody with only a high-school diploma.
  • 00:02:40
    Compare that to a college graduate with, say, a Communications degree.
  • 00:02:43
    That’s an extra $15,000 per year!
  • 00:02:46
    Not bad, but how much did it cost?
  • 00:02:49
    The average cost of tuition, room, and board at an in-state university is $80,360.
  • 00:02:56
    So our Communications major will break-even on their investment in about 5.3 years.
  • 00:03:02
    A Psychology Major will take 11 years to break even,
  • 00:03:05
    an Arts Major will take 8.8 Years, the most popular major, Business,
  • 00:03:09
    will break even in 3.2, and the most lucrative undergraduate
  • 00:03:13
    major of all, Engineering, will pay for itself in just 2 years!
  • 00:03:18
    Okay, but what about graduate school?
  • 00:03:21
    While it’s true that some postgraduate degrees can push your income into the next tax bracket
  • 00:03:27
    these percentages don’t tell the whole story.
  • 00:03:29
    Take law school.
  • 00:03:30
    The average law student graduates with somewhere between $85,000 and $125,000 in extra debt
  • 00:03:38
    on top of their undergraduate loans.
  • 00:03:41
    While the top students at the most prestigious universities can pull down big bucks right
  • 00:03:45
    away, they’re in the minority.
  • 00:03:47
    Almost half of law grads earn a median starting salary of only $65,000 a year.
  • 00:03:53
    That’s just a $15,000 pay bump for an extra $100,000 of debt.
  • 00:03:59
    Okay, how about med school?
  • 00:04:01
    That’s gotta pay off big time, right?
  • 00:04:03
    Well, the median salary for a general practitioner is $175,000 a year, but the average cost of
  • 00:04:10
    medical school at a public university is around $200,000.
  • 00:04:14
    When you factor in your undergraduate loans, and the interest that debt is racking up while
  • 00:04:17
    you’re in residency, it’s very common for doctors to end up paying almost half a
  • 00:04:22
    million dollars for 25 years for those two letters behind their name.
  • 00:04:27
    If all this is sounding scary or discouraging, just remember that statistically, it does
  • 00:04:33
    pay to go to college in the long run, whatever your major.
  • 00:04:37
    And there are things you can do early on that will ease the debt burden down the road.
  • 00:04:41
    SHOP AROUND.
  • 00:04:43
    Most universities can supply you with information about how much their alumni make in the workforce.
  • 00:04:49
    They might even connect you with graduates of your same major who can answer your specific
  • 00:04:52
    questions.
  • 00:04:54
    And when comparing prices, make sure you factor in the cost of living.
  • 00:04:58
    Some cities are so expensive to live in it can double the amount you’ll have to borrow.
  • 00:05:02
    Consider community college.
  • 00:05:04
    There’s a stigma that it’s only for people who can’t get into “real” college, but
  • 00:05:08
    it’s actually a pretty smart decision.
  • 00:05:11
    You can slash your undergraduate debt in half, and not get locked into a lifelong financial
  • 00:05:17
    commitment at the wise old age of 18.
  • 00:05:19
    That’s what Philip did, and today we have the exact same diploma from the same university,
  • 00:05:25
    but mine cost more than twice as much.
  • 00:05:27
    And lastly, look into alternative financing.
  • 00:05:32
    There are companies and colleges that are trying out a new-fangled approach called Income
  • 00:05:36
    Share Agreements in which the student agrees to pay a fixed percentage of their salary
  • 00:05:40
    for a fixed period of time.
  • 00:05:42
    Unlike a loan which relentlessly accrues interest through good times and bad, ISA’s don’t
  • 00:05:48
    punish the borrower for making less money than they hoped.
  • 00:05:50
    They’re basically betting on you to do well, and sharing some of the risk if you don’t.
  • 00:05:54
    Now, most people don’t choose their major for purely economic reasons.
  • 00:05:59
    People wanna do what they love and what they’re good at, and no Powerpoint presentation is
  • 00:06:03
    gonna change their minds.
  • 00:06:05
    And there are benefits to college that you can’t quantify, like broadening your horizons,
  • 00:06:10
    or meeting your future husband.
  • 00:06:12
    Being money smart doesn’t mean basing your life around money.
  • 00:06:15
    It just means taking simple precautions early on so you can chase your dreams without weights
  • 00:06:20
    around your ankles.
  • 00:06:22
    And that’s our two cents.
  • 00:06:25
    [MUSIC]
タグ
  • college
  • student debt
  • tuition costs
  • majors
  • financial advice
  • Income Share Agreements
  • community college
  • graduate school
  • engineering
  • Communications