Smartest Education Investment Isn't Always Four-Year College
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Between the spiraling costs of education and tight credit, student loans can be hard to come by these days. A number of studies by news and education organizations find that students graduating with a bachelor's degree come out of school with average debt around $20,000. The monthly bite from income will be between $131 if you finance for 30 years and $230 per month if you finance for 10 years. That may look like an easy choice, but overall you’d pay $47,000 with a 30-year loan, and just $27,000 overall if you pay off the loan in 10 years.
One way to keep debt down - and often make as much or more as you would with a bachelor’s degree, is to look at a variety of careers that pay as well but require less education.
Here are some samples. Note that the asterisked occupations will have the highest needs for new workers through 2016:
Associate
degree jobs
U.S. average for 2007
- Dental hygienist $64,910*
- Registered nurses $62,480*
- Aerospace-engineering operations technicians $56,780
- Geological, petroleum technicians $55,330
- Electronic-engineering technicians $52,470
- Industrial-engineering technicians $51,410
- Forensic-science technicians $50,310
- Mechanical-engineering technicians $49,290
- Electromagnetic technicians $48,120
- Paralegals, legal assistants $47,600*
- Computer-support specialists $45,300*
- Physical-therapist assistants $44,340*
- Environmental-science, health technicians $42,190*
Post-secondary
vocational training
U.S. median for 2006
- Electrical repairers, utilities $57,400
- Insurance appraisers, auto damage $49,180
- Court reporters $45,610
- Electrical repairers, commercial and industrial equipment $45,180
- Licensed practical and vocational nurses $36,550
*Jobs on the U.S. Bureau of Labor's list of fastest-growing occupations through 2016.
Sources: Maricopa Community Colleges, U.S. Bureau of Labor, Best Recession Proof Jobs
The Arizona Republic newspaper recently reported on a student who graduated from high school with the basic skills to land a precision machinist job with great benefits. At 20, he was able to buy a $150,000 house with payments he can well afford. Another young man who graduated from a trade school and works as a diesel mechanic is making $55,000 a year at age 28.
Similar stories were recently reported by the Fort Worth Star-Telegram in the Dallas-Fort Worth area in Texas.
Two highlighted occupations were dental hygienist and registered nurse (RN), paying average salaries of $64,525 and $59,068, respectively. Note that these are average for the profession, so are levels most employees won’t reach for some years, but starting salaries are good, too. Some states now require a bachelor’s degree to become an RN, but often a two- or three-year associate degree is accepted. Many students start there, and use tuition reimbursement from their employers to broaden their opportunities with a BSN. Training for a variety of other medical occupations, including radiology techs, is also a one- or two-year program.
Virtually all health occupation will continue to be hot because baby boomers are starting to hit retirement age, and older people use more health care.
However, training for health occupations has not caught up with need, so many programs are highly competitive. Excellent grades, high scores on tests like the ACT or SAT, and early application are advisable. Some people work in other occupation until a spot opens.