Friday, 1 March 2013

Rule # 5: Debt is the enemy




Debt is the one thing many students have in common; some of my friends have accumulated 20,000; 30,000; and up to 60,000 dollars-worth of debt. It is not uncommon to have racked up absurd amounts of debt to pay for school and living expenses while you are getting your formal education.

One of my former professors, a part-time faculty member at Western University, is a high-achiever in academia; she has a master’s degree from Harvard, and is a PhD candidate. She diligently warned her students against accumulating too much debt. Despite her competitive edge and her Ivy League education, she was and is unable to secure a full-time position as a faculty member. My former professor was a living example of how investing in a superior education doesn’t always have a good return.

But that’s not all. Most post-secondary students are in the same boat. Many of us have been brought-up to think that investing in a formal education will provide us with a great return on our money. We are confident that when we are finished school we will get a job; we believe that one day we will make enough money to pay off our student loans in a couple of years, live a comfortable life and retire. But this wide-spread conception of formal education has proven to be nothing more than a myth.

Post-secondary education is a prerequisite for many jobs: if you don’t have a degree then the job candidate who does is more likely to obtain a position, but the job market is flooded with university graduates and competition is high. It is a truly a no-win situation – there are more graduates than there are available jobs.  What does this mean? It means that investing in education to gain a better position, earn more money and, as a result, more security is a far-fetched ideal that will only be attained by a minority of post-secondary graduates.

The solution? Avoid student debt entirely by pursuing trades, apprenticeships and entrepreneurship. Trades and apprenticeship programs are often paid-positions and are either fully or partially funded by the government. If apprenticeships or trades don’t tickle your fancy, then get creative. Try saving enough money to start your own business and start earning your own revenue.

 Perhaps many of us have already accumulated massive debts, but throughout our search to get a job, it is important to keep these viable options in mind if we are not able to find employment in our fields.  

10 comments:

  1. Trades and apprenticeships are definitely the way to go... or you're right, at least be creative in preparing for your future. I haven't spent too much money on school and even I'm stressed about finding a job and making enough money to pay off the small debt I have... I can't imagine what some people must feel.

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  2. I ave never considered this...great advice!

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  3. This is a great point. Personally, I feel I've finally found the right, or at least close to right, post-secondary path for myself, but I'm dreading the immense competition I'll have to face just to fucking SURVIVE in our society.

    Apprenticeships and trades are so important, and this should be more than stressed in high school. Our formal pre-post-secondary education should be educating people on these facts! Especially because after spending $60,000 in 4-5 years, we're STILL told our generation isn't "spending" money and helping the economy. Sorry, should I take out another credit card? I far prefer your advice, Deanna.

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  4. Its a scary reality we live in when it comes to finding jobs.

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  5. It is so true when people say that Universities and Colleges are a business. They drain all the money from students and their families and then leave them with little to no job opportunities. You're right, trades are the way to go these days. But for those who are enrolled in university, look into scholarships and bursaries, as there are many that go unclaimed. It can be a lot of work to apply... but it can be worth it.

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  6. this is soo true! more education doesn't always = payday! good advice Deanna.

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  7. I firmly believe that there is no such thing as "good debt", even though we're constantly told an investment in education is "good debt". That's why I worked my butt off to pay for school instead of going in debt!

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  8. If only PR would've been an apprenticeship program...sighhhhhh. Great advice though on ways to avoid debt.

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  9. Very true. Education has become corporatized, buying text books especially has become a scam.

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  10. At some level it is true that daily writing time can be spent doing anything that moves the process forward so that you remain connected to the work. do my uni assignment for me

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