“Millions of well-intended parents and guidance counselors see apprenticeships and on-the-job training opportunities as “vocational consolation prizes,” best suited for those not cut out for the brass ring: a four-year degree.”
The Problem With the “Everyone Should Go to College Mentality”
Far be it from us at The College Funding Coach to suggest anything for your child other than a four-year bachelor’s degree at a reputable institution (that matches the colors of all your old sweatshirts), but just for a moment let’s reframe the discussion.
What if your child isn’t made for a four-year institution? What if they are more like your friend Jason who majored in engineering, changed majors, dropped out, went to cosmetology school, and now cuts hair and has a $1500 monthly student loan payment? (Note: We still like engineers, hair stylists, and Jason).
Some people are not meant for the traditional academic path. The problem with our society today is we turn a blind eye toward or wrongfully look down on other avenues of education. Children infer from a young age that college is the expectation or the grand prize. There is often no other option presented. As, a result, millions of students go into debt each year for a situation that is tolerable at best when they could be thriving in another environment for half the cost.
The harsh reality is that going to college, acquiring student loans, and then dropping out is a dangerous path to tread. There are plenty of students NOT graduating that still have student loans to pay off. One of our closest friends attended a private university on a basketball scholarship, majored in Guitar Performance, dropped out in his 2nd semester, and had student loans for the next 10 years. Don’t worry, he’s doing fine now making videos for bloggers (a natural outcome of majoring in guitar performance).
Why spend so much money figuring out what you don’t want to do?
If you want your child to be a valuable contributor to the American economy, as well as financially stable and mentally healthy, consider “not what your country can do for you, but what you can do for your country” (I’ve heard that somewhere).
There are significant gaps in our current workforce that can be filled by your child that…
- Don’t cost an arm and a leg to qualify for (and leave your child saddled with debt while they live at home and “figure it out”),
- Are in high (and ever-increasing) demand,
- Provide a steady income so your child can move out,
- Won’t be (or will be hard-pressed to be) replaced by AI.
The Affordability of Tech/Trade School
Let’s face it, college tuition inflation is real and a large reason why The College Funding Coach exists.
A question I frequently ask in my presentations is, “What thing in your life absolutely costs more than four years of college?” (Pause for effect) Answer: “five years of college.”
This is why we constantly push the importance of finding the “right fit” school for your child.
But are we too narrow in our four-year focus? Why force our child who has so much potential to attend a traditional four-year college if they are disinterested or have different strengths than rote memorization and writing papers?
Should we be ok with our students taking out $30,000 in debt despite little personal finance experience and no guarantee that traditional college is right for them?
We need to stretch the meaning of “right fit” to include other forms of education.
Enter technical colleges.
Paying for Trade or Vocational School
Trade schools typically hand out certifications/degrees within 18 to 24 months. On top of this, they can cost as little as $3,000 per year (though some programs can push up to $20,000 per year) based on certification/degree and region. Compare this to the Cost of Attendance at an in-state university where you do not qualify for financial aid. Here is the cost all-in for three major universities in my home state of Kansas:
University of Kansas: $24,698
Kansas State University: $27,171
Wichita State University: $25,329
Remember, this is just for one year.
Oh, and by the way, many of the usual college funding strategies apply to trade and vocational schools:
– You can use your 529 funds to pay for tech school.
– There are outside scholarships for tech school. You can find these via Google or using a scholarship engine like Scholarship Owl.
– You can still access federal, state, and institutional aid through the FAFSA if the school is accredited (including federal loans).
– You can access private loans for trade school. Some programs, like Sallie Mae, offer loans specifically for career training.
Job Prospects Coming Out of Trade School/Vocational Training
The demand for tradespeople is high and continuing to increase. This is in no small part due to the imprecise and erroneous obsession with pushing everyone toward the traditional university.
Not only are college graduates reporting that they are “underemployed,” but nearly 2.1 million manufacturing jobs will be unfilled through 2030, which means about a $1 trillion cost to the US economy at that time.
Specifically, there will be an estimated shortage of 400,000 welders by 2024 and a shortage of 48,600 plumbers every year until 2031.
The opportunities are out there for employment and income much sooner than a four-year degree will afford you.
Worried about a job? Don’t be. Here’s a non-exhaustive list of high-paying jobs via vocational school:
– Aircraft Technician
– Air Traffic Controller
– Audio & Video Tech
– Construction
– Copywriter
– Commercial Pilot
– Commercial Diver
– Electrician
– EMT + Firefighter
– HVAC expert
– Hydrologic Techs
– Insurance Appraiser
– Lighting Tech
– Makeup Artist
– MRI Tech
– Nuclear Tech
– Plumber
– Radio/cellular/tower equipment installers
– Radiologic Techs
– Respiratory Therapist
– Plant Operator
– Welder
Note: There has also been an explosion in online certifications for white-collar desk jobs. We are still waiting to see how this situation shakes out in the future, but you can save thousands by learning coding via boot camp, learning graphic design online, taking a data science certification course, or taking one of the myriad Google certifications. The list goes on and on.
Nursing School Example: You Got to Spend (Less) Money to Make (More) Money
Let’s compare two different programs in a high-demand industry.
According to the Bureau of Labor Statistics, the fastest-growing occupation in America is a Nurse Practitioner. While this requires further graduate education, it starts by achieving a Registered Nurse certification. You can achieve this at a tech school in 65 credit hours for a total of $14,231.
Or, you could go for your BSN, which would not only take longer (120 minimum hours), but at the same affiliated university the degree would cost $14,859 PER YEAR after aid.
Yes, in a technical school setting you will miss out on the “traditional” college atmosphere. But when the traditional college experience comes at such a high premium, it’s time to start weighing the costs vs. the benefits.
According to a study out of Georgetown, “28% of associate degree holders earned more money than half of all workers with a bachelor’s degree.” While that may not mean that a bachelor’s degree earns you less, it’s a pretty powerful argument for trade school especially if your son or daughter isn’t inclined to a traditional university setting.
This means if you do your research and play your cards right, opting for trade school could leave you with more financial resources than your college-educated peers.
Why Does Any of This Matter? Won’t AI Replace Us All?
One of the most alluring rankings for prospective college students and parents is which majors are popular and lucrative right now. While some of these popular majors remain relatively stable, others fluctuate drastically in as little as four years (correlated with whatever is trending in the job market).
One thing is certain, though: skilled labor jobs are needed desperately and will be needed in droves.
But wait, you exclaim, what about AI stealing all our jobs? Who’s to say you haven’t been using ChatGPT to write this whole article?
I’m to say (and I’m not using it). But it would be difficult for ChatGPT to fix that leaky pipe in my bathroom or intubate a patient in the hospital. The fact is, plenty of trades are here to stay and will pay your child well. AI will likely enhance these jobs and make them more efficient but isn’t going to be taking over any time soon. AI just is not there yet when it comes to judgment calls, dexterity, creativity, and trust.
So don’t discourage your child from training to be a welder or Registered Nurse or both. Heaven knows it will cost you less.
College Myths to Combat
Myth #1: If I don’t go to a traditional college, I am somehow lesser than my peers.
Different is not worse.
There’s a powerful expectation in certain areas and certain schools in the country that students will enter a four-year college after graduating high school. Many kids perceive this as a negative pressure i.e. if I go to community college or trade school or take a gap year, I’m somehow an outcast or a failure.
We need to do better about changing this narrative.
It’s simply not true and is leading many people astray (and into debt). In fact, one survey found that 74% of students who attended college solely for extrinsic reasons (e.g. this is the socially acceptable thing to do/this is what is expected) ended up dropping out of school or transferring.
Somewhere along the line people started to look down on skill-based, well-paying “blue-collar” jobs. Fortunately, we are now seeing a bit of a correction as more and more families question the value of college.
Consider the following argument in favor of tech school: your child pays 25 to 50% less for their education, takes on less debt, and gets a stable job paying more than their university peer two years before said peer will start making money. Just as said college graduate is beginning his/her foray into the working world, your tech school grad has had the opportunity for two extra years of on-the-job training, a decent wage + some savings, and the ability to pay off their debt quickly. (Hopefully said graduate has taken steps to learn personal finance.)
Myth #2: College is the best four years of my life.
If you think about this for more than a few seconds, this is absurd and quite depressing.
Consider this: For just a fraction of the cost, you can get job training, start making money sooner, and still visit your friends on weekends to get the “college experience.”
Myth #3: Getting a bachelor’s degree means I will change the world.
Earning your four-year degree is no small task and should be celebrated.
Unfortunately, the promises behind and value of a four-year degree have become somewhat murky. We can debate what the degree means to employers all day, but one of the biggest marketing strategies colleges use to recruit and inspire students is the idea that each student will “change the world” with their university education.
This is often heartily emphasized in platitudinous graduation speeches incentivizing students to go out and shake the world. This difference in expectation and future reality is certainly one factor in both macro job dissatisfaction trends and the current mental health crisis.
Final Thoughts: Changing the Narrative on Higher Education
College is no longer the golden ticket to success it once was. There are many different educational approaches to accessing good jobs, and we need to emphasize the message that college should not be seen as the de facto path forward after high school.
While the historical push towards traditional college has been life-changing for many, it has come at the literal expense of many others who never should’ve wasted time or money on traditional college in the first place.
We need counterbalances to provide perspective and prevent us all from clinging to the university-or-bust train.
To conclude, here are five things to consider for both parent and student when weighing the next step after high school:
- 40% of college students drop out. Make sure you can answer the question “Why college?” before applying and paying. Do not attend college just because “everyone else is doing it.” Taking out student loans to attend traditional college and then dropping out of said college is one of the worst things you can do for your future.
- There is a massive need for skilled trades employees. Plus, these jobs are here to stay.
- Trade school, on average, is much cheaper than a four-year college or university. It also tends to be two years or less. Hear that? That’s Mom and Dad cheering for an early retirement.
- Almost all the typical college funding strategies apply to saving and paying for tech school.
- In some cases (not the majority), your return on investment can be higher via tech school than it would be via traditional college.
Whatever higher education path your child takes, The College Funding Coach is here to help you save and pay for it as efficiently as possible.
Schedule a free consultation with a coach to determine college funding strategies tailored to your unique family situation and goals.
Continue to learn more by checking out our on-demand webinar library and attending our live flagship workshop, Little-Known Secrets of Paying for College.
Author:
The College Funding Coach
Additional Resources for those interested in tech/vocational school:
Occupational Outlook Handbook: U.S. Bureau of Labor Statistics