This is a great explanation of pretty much how it is.^^^ This is similar to housing bubble, and easy credit that led up to it. Has the bubble essentially already crashed via sallie mea since they own most of the debt or do we have yet to see the worst of it? It's basically all on the US taxpayers back right? Since the gov't owns almost all student loan debt.
I have yet to see an unemployed actuary, or an unemployed programmer with a degree from a good school, or an unemployed anyone who actually learned something useful in school. Good education is still the best investment a young person can make. So yes, taking out student loans for Columbia, Duke or MIT is a great idea and it will achieve a great ROI. Somehow, when a loser with a degree in Film Studies from Marylou Valley College can't find a job it's the fault of the system and the "education" not a worthy investment any more.
If one wants to make lower upper 5 figures -6 figures a year, go to a high end college and hope you can work your way up the corporate ladder. If one wants to be a multi millionaire and will stop at nothing short of their goal in the face of adversity, college is just a waste of time. The majority are probably better off going to college.
and then I have another one with a degree in Psychology. The best I could tell her was, "Well, maybe a job in the Human Resource Department." What multi million dollar corporation doesn't need trained professionals to tell them who would probably be a good employee? Especially since you have 4 years experience going to school.
Sure, you can become a day-trader at the age of 19 and pretend that you are super-rich on the internet. The reality is, however, that your best way to become a millionaire is to get a highly paid professional job (doctor, actuary, corporate law etc) and and start your own business when you have a nice cushion to lean upon. PS. Have you even heard of survivorship bias?
if all you want to be is a millionaire your best bet is to get a job the day you graduate from high school and to max out your 401k and IRA.
Out of all non-numeric and non-business degrees, Psychology is (maybe) the only one that has value, under assumption you went to good school. I used to see a therapist, she graduated from the H school (same year as yours truly) and after getting a PhD in clinical psychology, was doing pretty well for herself. I would imagine industrial psychology and other stuff is out there too...
The best path for the majority is to go to college and build some sense of security for their selves. I agree with you. I do however have more respect for the 30 year old who makes more in one summer with his landscaping business than a doctor that gets off on the first two letters in front of his name. The 30 year old is a hardworking independent, the Dr. had to suck dick his whole life to get to where he is.(also hardworking though)
Ha, is that so? You graduate at the age of 18 and work to the age of 65, so thats 47 years (564 months). I think for someone without any financial knowledge, 5% per year is as good as you can get it in terms of reliable returns (even that is pretty hard). So, to be a millionaire by the time you retire you have to set aside 400 dollars a month, assuming monthly compounding. Not a small feat if you are making 25-35 grand a year.