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Bloomberg
10-06-2025
- Business
- Bloomberg
A College Degree Is No Longer a Risk-Free Investment
My unifying theory of finance is that everything goes seriously wrong when people start seeing something — a bond, a mortgage-backed security, a crypto exchange — as risk-free when it isn't. Look at any financial crisis or minor blowup, and that's always where it starts. Lately I have been wondering if my hypothesis applies to areas outside of finance — specifically, to education. For years, a college degree was seen as a risk-free asset. It took money and time, but it was near certain it would pay off in the form of increased lifetime earnings. No wonder that we are in now in an education bubble: Lots of people went to college, studied things that aren't useful, and found themselves overwhelmed with debt. Many more can pay their debt, but work in jobs that don't require a degree anyhow.
Forbes
02-06-2025
- Business
- Forbes
Graduate School—Who Should Foot The Bill?
Graduate students hold nearly half of all federal student loan debt—but receive the least attention in education policy. It's time for a shared solution. getty Higher education is dominating the headlines, whether federal funding cuts, DEI policies, research restrictions, or student debt. However, there is little focus on one student population being hit the hardest—graduate students. Students earning master's and doctoral degrees are essential to the academic ecosystem—they lead research, teach undergraduates, and advance innovation. Yet, graduate students are seeing their work and positions being stripped away. With fewer opportunities and the current administration along with Congress seeking to shift the burden of financing higher education away from the government and towards the private sector, individual colleges or the individual, concern is growing about the future of essential professions that require advanced degrees—doctors, scientists, lawyers, professors, and business leaders. Graduate students make up 16% of all borrowers, but they account for 47% of all loans provided by the federal government. This is roughly $39 billion in one year. So, who should be footing the bill for these advanced degrees: the government and taxpayers, corporations, or the individual? The answer depends on your rationale for education. If you believe education exists to enrich society and strengthen Democracy, graduate degrees clearly play a role. Those with advanced degrees are more likely to vote, volunteer, and be more civically involved. In fact, 64% of House members, 79% of Senators, and 20% of their staff hold graduate degrees. In 2023, 21% of all Federal workers held advanced degrees. As of this year at the state level, approximately 85% of those with the highest positions (Governor, Lieutenant Governor, Attorney General, and Secretary of State) held advanced degrees. In sum, those with this graduate-level education attainment are highly represented in the most influential offices of our Democracy and are among the most civically engaged citizens. Under this rationale, the government and taxpayers should share in the cost of graduate education. If you view education attainment primarily as a means for personal mobility, then graduate school plays a significant part in that outcome. The median salary for those with Master's, a Professional (Law, Medicine, etc.) or Doctoral (PhD) degrees in 2024 was approximately between $95,600-$123,000 a year compared to only $80,236 for bachelor's degree holders. While this varies by field, experience, and location, the premium for a graduate degree tends to be higher. Under this rationale, the benefit is primarily for the individual, and they should share in the cost of education. The third rationale is a bit more complex. As employers demand higher credentials, graduate education becomes less a personal choice and more a professional requirement. 16% of jobs will require a graduate degree by 2031 compared to 8% in 1983. If employers adhere to this educational ideology and desire workers to have graduate credentials instead of developing those skills internally, then, under this rationale, corporate America should share the cost of education. The truth is that we as a society expect education to do it all—advance individuals, strengthen Democracy, and power the economy. Yet we often forget the cost of preparing future generations. If we collectively want to share education's rewards, then we must also share the costs.
Yahoo
26-05-2025
- Business
- Yahoo
Thousands of retirees may soon see Social Security checks docked by 15% as Trump admin resumes collections
For millions of older Americans relying on an embattled Social Security system to cover their bills, another financial gut punch may be on the way — and it's coming from their own student debt. Under a Trump administration move to resume collections on federal student loans, borrowers in default could soon see their Social Security benefits docked by as much as 15%, higher education expert Mark Kantrowitz told CNBC. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) That means retirees already living on fixed incomes could lose a big chunk of their monthly checks with little warning. And for the hundreds of thousands of borrowers 62 and older who have defaulted student loans — it could be an unhappy surprise in the mail. The government has long had the power to claw back a portion of Social Security benefits to repay defaulted federal student loans. But those collections were paused during the COVID-19 pandemic. The pause was extended under the Biden administration, but President Trump has restarted the clock. The Department of Education recently announced the administration will resume involuntary collections as early as June, meaning borrowers in default could once again be subject to wage garnishments, tax refund seizures and offsets to Social Security checks. And there's a big population at risk. Recent federal data shows that nearly 3 million people over the age of 62 hold federal student loans. The Consumer Financial Protection Bureau says more than 450,000 borrowers in that age group have defaulted on their federal student loans while receiving Social Security benefits. Many of these borrowers are parents who co-signed loans or took out Parent PLUS loans for their children and fell behind after job losses, medical expenses or other financial shocks, according to the National Consumer Law Center. 'Borrowers who receive these notices should not panic,' Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program, told CNBC. 'They should reach out for help as soon as possible.' Read more: This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs If you're in default, the federal government can withhold up to 15% of your monthly Social Security benefit without your permission. The offset kicks in automatically, unless you act to stop it. If you get such a notice, it's important to know your entire benefit won't be wiped out. Federal law protects the first $750 per month of Social Security income from garnishment. But for seniors already scraping by, even a small deduction can have a devastating impact. The worst thing you can do is ignore the problem. If you're in default or nearing default, there are steps you can take now to reduce the risk of garnishment. First, you may be able to request a hearing or file a request to stop or reduce the offset. If you're facing medical issues, supporting dependents or already living below the poverty line, you can submit documentation proving financial hardship to the Treasury Department or its debt collection agency. Second, consider reentering good standing through loan rehabilitation or consolidation. These programs allow borrowers to make a series of small payments to bring their loans out of default. Once you're out, you're no longer at risk for Social Security offsets, but you have to act quickly. Loan rehabilitation typically requires nine monthly payments, and the process can take several months. If you're still working and planning to retire soon, Trump's repayment effort should be a wake-up call. Retiring while in student loan default is now risker than ever. For some, it may make sense to delay retirement until the loan is resolved, especially if garnishment would push you below your living threshold. You might also need to rethink your savings strategy. If your retirement income plan was built around a full Social Security check, it's time to reassess. You may need to increase 401(k) or IRA contributions, trim expenses or explore additional income sources to make up the shortfall if garnishment kicks in. And for those still in the workforce with aging loans, now is the time to check your status. Are your loans in good standing? Are you on an income-driven repayment plan? The answers to those questions could make or break your retirement security. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBC
20-05-2025
- Business
- CBC
Student advocates outraged as MUN uses money set for tuition reduction elsewhere
Memorial University says it will continue increasing the cost of tuition despite budget cuts being put on hold — which two student advocates say shows a continued lack of financial responsibility. Rana Abuidris, the executive director of campaigns for MUN's student union, says the decision comes as students face heavy financial anxiety. "Students are skipping meals. I know students are currently working three jobs to be able to afford the tuition costs right now," Abuidris told CBC Radio's On the Go. In a post on Memorial's Gazette on Tuesday, president Jennifer Lokash outlined parts of the 2025-26 budget approved by the board of regents. Part of the budget includes a one-time pause in a tuition reduction grant given to the school by the provincial government totalling $13.68-million. The province has cut the fund yearly since 2022, when it was giving $68.4 million to the school to keep a tuition freeze in place. A cut of about $14-million per year led to the end of the tuition freeze. Costs skyrocketed from $2,550 to $6,000 per year for Canadians and reached $20,000 for international students, along with an annual four per cent increase until 2026. Lokash wrote that the $13.68-million aimed at tuition reduction was instead directed to "drive Memorial University's transformation to a more learner-centric, sustainable and efficient institution." The school will use $3.9-million to contract teachers, while using the rest to enhance efforts on student recruitment and retention, business transformation efforts and critical technological improvements among other items, Lokash wrote. Nicolas Keough, chair of the Canadian Federation of Students in Newfoundland and Labrador, said he had hoped the money would be used for its intended purpose. "The grant that is made to offset tuition, the money should be going toward that," he said. "This is not 'The money had to come from somewhere.' … That's what the operating grant is for." Tuition should be as low as possible: Education Minister Both Keough and Abuidris believe there was some support among the board of regents to move the freeze forward, but not enough. It's the latest example of financial mismanagement from the university, Abuidris added, highlighted by a scathing report from the auditor general in January that showed years of infrastructure neglect and overspending. "This was an opportunity for MUN to rebuild a relationship with the provincial government and rebuild their trust. And again, Memorial again have shown that they cannot be trusted with, like, money. Student's money. They're clearly not putting students as their main priority," Abuidris said. Asked about the decision on Tuesday afternoon, Education Minister Bernard Davis said MUN is an autonomous organization that can do what it wants with the money it receives from government. The province supports the school, Newfoundland and Labrador's only university, through more than $400 million, and accounts for about 70 per cent of the school's total operating grant. However, Davis added he knows the financial struggles students are facing and tuition costs are challenging. "I always would like to see as low a tuition as you possibly can for our students," Davis said. "The decision about tuition sits with the university and the administration of the university. We give them a very high level of support. We've looked at some of the cost pressures ... and we gave them more money. But as I've said many, many times, it is up to the university to determine where and how they spend that money."
Daily Mail
12-05-2025
- Business
- Daily Mail
The jobs that pay $100k without a college degree... including one in serious demand
As college gets more expensive and white-collar jobs become harder to land, more young Americans are skipping the six-figure student debt — and earning just as much without a degree. Ironically, the shift is being driven by too many people going to college. That flood of degrees has created a growing imbalance: too many graduates, and not enough workers trained for essential skilled careers that don't require a four-year degree. As a result, companies are boosting salaries for roles that require hands-on training instead of academic credentials. These include traditional trades like plumbing and electrical work, as well as specialized professions like lift mechanics and commercial pilots. One example is commercial pilots. There's a nationwide shortage of them, and the demand for pilots keeps growing — for things like charter flights, firefighting, and rescue missions. That's why the average salary is $113,000, and some earn up to $239,000. Another example is air traffic controllers. It's a stressful and important job that takes special training. Since few people are qualified, the average salary is $179,000. Even in tech, a degree isn't always required. Web developers and digital designers are in demand across industries. If you can code or design, you can earn a strong salary — without spending four years in college. The median pay for these roles is just under $100,000 but top pay can far exceed that at around $176,000, according to the careers site. As these jobs don't require formal education achievements the best way to land the best-paying gigs is to have a strong portfolio of past work and good references. Becoming a special effects animator can also pay six figures and does not require a college degree. Although many animators and digital artists do choose to complete a short specialized diploma in the field, it is not a strict criteria. Some of the best-paying animator jobs can earn workers around $170,000, according to Trade Schools. Other six-figure jobs include roles that many high schoolers may not have even considered. Elevator and escalator installers earn just over $100,000 on average, Fortune reported. This niche job is the highest-paid trade job in the country, according to 2023 data from the Bureau of Labor Statistics. However, the conditions of such a trade can be tough with long hours often at great heights and in confined spaces. There are also relatively few roles, with around 2,100 job openings each year, according to the Bureau. Mike Rowe, the CEO of MikeRoweWorks Foundation, has dedicated his organization to changing the perception of skilled labor jobs and help encourage young people to take up a trade. Rowe's Foundation offers scholarships to help train people in skilled jobs that are facing employment shortages. 'We're redefining a good education and a good job, because we don't think a four-year degree is the best path for the most people,' Rowe wrote on his website. 'Blue-collar jobs are a straight path to a six-figure job,' Rowe told Fortune magazine. Meanwhile, a CEO recently revealed the one crucial question he asks every candidate during job interviews. Gary Shapiro, head of the Consumer Technology Association (CTA), asks applicants how soon they could start their new role. If they say they can start in less than two weeks 'they don't get the job, because they'll treat us the way they treat that former employer,' the 68-year-old explained.
