College Costs Skyrocket, Graduates Go Unemployed

When someone is paying $50,000 a year to attend college, are they getting what they pay for? As many students begin applying for the 2010 academic school year, they are entering a climate where endowments have been slashed, student loans are more restrictive, and parents have seen 529 college investment plans sink along with the markets.

The upcoming school year will be highly competitive and expensive but will it be worth it? College itself is not a direct link to a career. With the recent unemployment rate almost hitting 10 percent officially, and broader U-6 rate measurement approaching 20 percent, students have to ask themselves, "What kind of return on investment am I getting from my college degree?
According to the last unemployment report the teenage unemployment rate is the highest in nearly 50 years at over 24.2 percent. The report also finds that those with college degrees are facing the highest unemployment in two decades since records started being kept.

Without a doubt, those with a college degree do better in the marketplace. However, during the 1990 recession, a college degree was a better buffer than during our current recession. For the first time in record keeping history, the unemployment rate for those with 4-year degrees or higher has passed the 4 percent mark.

With college costs going through the roof and in many cases, costing nearly $50,000 a year at private schools many are asking whether some college degrees are even worth pursuing.

Parents and students alike are now questioning the massive increases in college tuition. Will students be willing to go $150,000 to $150,000 into debt for a career that will pay $30,000 a year, even if they are lucky to work in the field of thier choice? Will parents be willing to pay? Students may benefit by going to a lower priced state school instead of a private institution. They also may opt out to start their own career or enter a trade. Return on investment, it's a term all college students and their parents are learning, not just those in the School of Business.