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On average, skipping college and investing tuition costs nets a higher return

erikrood.com

71–80 of 669 posts

Re: On average, skipping college and investing tuition costs nets a higher return

#71
Skipping all of school has even higher returns. If you just invested all the money that would normally go to pay for your K-12 school and college each year, then by age 25 or so you'd have enough money to retire.

The problem is that even if your parents home school you, they're generally not allowed to just not pay millage.

Re: On average, skipping college and investing tuition costs nets a higher return

#73

As a culture, we really need to stop telling 17 year olds to not worry about money, go to college, and figure something out. There is always someone ready with a romantic appeal to a classical education, and it is so frustrating for me. Wasting four years is a huge cost. Years, decades of debt is a huge cost. Going to college with no plan about money? The costs are assured. Plus, the degrees people are actually getti…

What about... offering college for free like the rest of the modern world? Then you would only have to worry about living costs and those loans are pretty small. I could pay off mine in like 4-5 years if I really wanted to. Plus, then people still could get an education even if their parents didn't save up for you. What about as a society/culture you start telling people that the country should offer education for fr…

We already provide free college to the best performing students and those students very likely achieve much higher ROI. I benefitted from a four-year tuition, room, and board scholarship from my college, as did my brother and sister from theirs. However, only a fraction of a percent receives academic scholarships and a good portion of scholarships go to star athletes instead.

The German system is nearly comparable. Only 10% of Germans are accepted to Gymnasiums followed by Universitat. If you test highly enough to qualify there, your college is free. Other students get free trade school.

Perhaps America should expand scholarships to more students instead of eliminating them along with other cuts? We seem to have far too much money for sports programs and war while cutting everything else. I've never seen any highly-placed leaders propose that war plans involve a cost-benefit analysis or that cuts should go to the men's football team.

Re: On average, skipping college and investing tuition costs nets a higher return

#74
post #65
post #54

Earlier quoted context omitted.

Education in America is cheap, the problem is people don't go to their local school, they see college as an experience where they travel halfway across the country and stay in student housing.

No, education in America is expensive. If tuition was free or cheap, you could work part-time to pay living expenses and take more time to finish your degree as many students in Europe do.

Tuition != education. Tuition pays for far more than education, administrative costs are skyrocketing (look it up) and colleges spend like drunk sailors because competition on tuition costs is nearly non-existent (you'll take the loan anyway, so what does it matter the 10% difference in loan size?) and raising tuition won't result in significant application drop (since most applicants are either subsidized or take loans anyway).

Re: On average, skipping college and investing tuition costs nets a higher return

#75
post #42

Earlier quoted context omitted.

Actually, from the student's perspective, there would be a 0 investment, so ROI becomes infinite.

I don't understand what you mean by this. Say a grandparent left a grandchild 50k for college. It's the grandchild's money. The grandchild could choose to invest in college or the market. This may not be a common scenario but that's what I meant.

> Say a grandparent left a grandchild 50k for college. It's the grandchild's money.

Well if somebody gives you money for X it's not really your money since you are not at liberty to spend it however you want. Only X is technically yours.

Re: On average, skipping college and investing tuition costs nets a higher return

#76
post #65
post #54

Earlier quoted context omitted.

Education in America is cheap, the problem is people don't go to their local school, they see college as an experience where they travel halfway across the country and stay in student housing.

No, education in America is expensive. If tuition was free or cheap, you could work part-time to pay living expenses and take more time to finish your degree as many students in Europe do.

I went to two years of community college for under 2k. My parents invested in a state program when I was younger which promised to pay for 4 years of state schooling. Not sure exactly how much they put in, but had you withdrawn the amount to use it for private schooling it was like 10k, so I'm assuming not much more than that.

Because community college was so cheap, I was able to use that other funding to pay for a graduate degree and part of my PhD program.

It's not expensive, people just have goofy ideas about what being educated means.

Re: On average, skipping college and investing tuition costs nets a higher return

#77
post #28
post #10

This article doesn't explain why we should believe that stockmarket performance, going forward, will be anything like the S&P's performance from 1993 to now. It's also not clear why we should believe the Payscale College ROI figures. I clicked around a bunch and couldn't find any description of their actual methodology for computing it. In particular, before we can take it seriously we need to know how well they've d…

> This article doesn't explain why we should believe that stockmarket performance, going forward, will be anything like the S&P's performance from 1993 to now. Nor why we should believe that a college degree's wage premium will be anything like its performance from 1993 to now.

As automation replaces low-skill jobs, the wage premium may actually skyrocket for those who are able to get a job.

Re: On average, skipping college and investing tuition costs nets a higher return

#78
post #65
post #54

Earlier quoted context omitted.

Education in America is cheap, the problem is people don't go to their local school, they see college as an experience where they travel halfway across the country and stay in student housing.

No, education in America is expensive. If tuition was free or cheap, you could work part-time to pay living expenses and take more time to finish your degree as many students in Europe do.

I was under the impression that this was already true to some degree in the US. Am I mistaken?

Re: On average, skipping college and investing tuition costs nets a higher return

#79

Earlier quoted context omitted.

What about... offering college for free like the rest of the modern world? Then you would only have to worry about living costs and those loans are pretty small. I could pay off mine in like 4-5 years if I really wanted to. Plus, then people still could get an education even if their parents didn't save up for you. What about as a society/culture you start telling people that the country should offer education for fr…

On the other hand, one should wonder why college is so expensive in the US in the first place. Even without any subsidies, non-American tuition is a fraction of the cost of the big universities in the US. Why? Why are book so expensive here? Why is so much money spent on buildings, stadiums and hiring football coaches? The highest paid public employee in 39 states in the US is a college sports coach! [1] Throwing mor…

But all you're really saying with sports coach comment is that, among people in a sector that is not profit-oriented or known for high wages, the highest paid employee is the biggest differentiator of success ("amateur" participants notwithstanding) for a lucrative entertainment business. That's not really surprising on its face.

Re: On average, skipping college and investing tuition costs nets a higher return

#80

Earlier quoted context omitted.

What about... offering college for free like the rest of the modern world? Then you would only have to worry about living costs and those loans are pretty small. I could pay off mine in like 4-5 years if I really wanted to. Plus, then people still could get an education even if their parents didn't save up for you. What about as a society/culture you start telling people that the country should offer education for fr…

On the other hand, one should wonder why college is so expensive in the US in the first place. Even without any subsidies, non-American tuition is a fraction of the cost of the big universities in the US. Why? Why are book so expensive here? Why is so much money spent on buildings, stadiums and hiring football coaches? The highest paid public employee in 39 states in the US is a college sports coach! [1] Throwing mor…

The top paid coach there is Nick Saban; Alabama football made over $100 million in revenue last year.

https://www.seccountry.com/alabama/alabama-football-reported...

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