<p>Megan</a> McArdle on the Coming Burst of the College Bubble - Newsweek and The Daily Beast
Is College a Lousy Investment?
Sep 9, 2012
Mythomania about college has turned getting a degree into an American neurosis. It's sending parents to the poorhouse and saddling students with a backpack full of debt that doesn't even guarantee a good job in the end. With college debt making national headlines, Megan McArdle asks, is college a bum deal?</p>
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<p>I don't think increased government "investment" in education is a good idea, because it largely serves to drive up costs. For parents with smart and motivated kids, investing in a college education at a reasonably-priced school (including financial aid grants and merit scholarships) can make sense.</p>
<p>Depends on how much you are paying. Quebecer students fought seven months straight for a tuition freeze, at $2,168, because the return on investment would greatly diminish for so many of them if tuition hikes were enacted.</p>
<p>It also depends on what your major is. As said before, what is the ROI? If you are an engineering major where the demand for engineers is high, and the potential income is hight, then college is an excellent investment.</p>
<p>I am an extremely frugal person. I have a daughter who wanted to be a high school choral director. Demand is low, the field is specialized, and the wages are modest. I would not send her to a big name, high dollar school. I sent her to an excellent state school with a wonderful music program where she qualifies for honors scholarships. She also has scored some other scholarships and interest free loans. For her, I believe this was the right way to invest.</p>
<p>College is still a good investment if you manage it like any other investment and ask yourself the important questions - How much do I invest? What is the PROBABLE ROI? What are the risks involved?</p>