Plummeting College Tuitions Tell an Important Story
For my first 31 years in the investment business, and until the “Covid Lockdown of 2020” (‘The Lockdown’), college tuitions increased consistently faster than the national inflation rate, to the extent a higher annual increase was built into financial planning models for future education costs, like future health care costs. While ‘The Lockdown’ had an overwhelmingly negative impact on nearly every aspect of American society, it was the impetus that awakened millions of citizens who were being duped into paying a ridiculous sum of money for, at best, a marginal education. This in no way reflects upstanding colleges and universities which soundly educate students in fields useful to society, like science, medicine, nursing, mathematics, engineering, info tech, and architecture, institutions which remain in high demand and continue to raise tuitions today; rather, it refers to the thousands of lesser-known schools capitalizing on the misguided demand for college degrees offering little practical use, institutions now slashing tuition rates and scrambling for economic relevancy.¹ Consider the facts as you plan the funding of your own family’s future education:
‘The Lockdown’ forced students into a digital setting, exposing the cost and distraction of college entertainment. For serious students, this raised a wonderful question, “what is the marketable value of the education I am receiving in the workplace?”.
Lacking an encouraging answer, scores of serious Gen Z students are rethinking the whole process of their secondary education and taking a good look at the alternatives, discovering a highly marketable, credentialed trade or skill can be acquired in a specialized field of interest for a tiny fraction of the cost and time!
This development has led to 14 colleges being closed in 2023 alone,² many more slashing tuition drastically,³ and is the most encouraging development in America’s educational system in generations. Go Gen Z!
Free enterprise has re-entered the setting of secondary education and is having a profoundly positive effect, showing promise of a more competitive future for America. Encourage young people everywhere to understand the basic principles of finance and economics, and the importance of a valuable, marketable, specialized education, and warn them well in advance not to pay a penny more than is required to obtain it.
Think about it, Shaun.
“Do you see a man skillful in his work? He will stand before kings; he will not stand before obscure men.” ~Proverbs 22:9
“An investment in knowledge pays the best dividends.” ~Thomas Jefferson
1 The JOLT, by Stephen McBride, “College tuition prices dropped for the second year running”, January 31, 2024
2 Inside Higher Ed, “A look Back at College Closures and Mergers”, December 21, 2023 https://www.insidehighered.com/news/business/financial-health/2023/12/21/look-back-college-closures-and-mergers-2023
3 Inside Higher Ed, “Tuition Resets Continue Amid Public Skepticism of College’s Value”, September 15, 2023 https://www.insidehighered.com/news/business/revenue-strategies/2023/09/15/amid-skepticism-colleges-value-tuition-resets-keep
The opinions voiced in this material are general, are not intended to provide specific recommendations, and do not necessarily reflect the views of LPL Financial.
https://www.fivestarprofessional.com/spotlights/90982
Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2012/2022 Five Star Wealth Managers.