Page 12 - November 2023 Issue.indd

DOLLARS AND SENSE by Tolbert Rowe

Is a College Education Really Worth It?

Since President Biden’s blanket $20,000 more than implementing the original a front and center issue for years.
Student Loan forgiveness program was terms and conditions of the loans, Institutions of higher education have
deemed unconstitutional he has taken except for those who are permanently been provided with a never-ending
a different approach and decided to disabled. $5.2 Billion of this is for 53,000 source of revenue from primarily young
enforce forgiveness programs that borrowers who worked for at least a Americans who had been led to believe
already exist. His most recent action has decade in an eligible public service that the path to career success was

effectively erased about $127 Billion in field such as teaching or the military. paved with a college degree. And as

student loan debt for almost 3.6 million The average loan balance is $98,000. long as there were more people applying
borrowers. Almost $2.8 Billion is for nearly 51,000 to attend college than there were slots

borrowers who had been in an income available to fill, regardless of the upfront
Before you have a stroke about how
repayment plan for a minimum of 20 and future monthly payments, colleges
unfair it is to the American taxpayer years and have reached the threshold have had free rein to increase tuition
and a slap in the face to those who took of payments for forgiveness. The just because they can.
on the obligation of a student loan and
average loan balance is $54,900. $1.2
paid it back, pause to recognize that Billion is for 22,000 borrowers who As the above numbers show, the
these loan programs existed prior “bank” (AKA Federal Student Loans)
have permanent disabilities and were
to Biden becoming President. I am has always been open to lend whatever
identified through a social security
not defending his action as much as data match. The average loan balance was needed to cover a student’s college

I am acknowledging the bureaucracy expense short fall. Students and their
is $54,500.
responsible for implementing and parents were willing to do whatever it
overseeing these programs failed to do When you consider how high the would take so they could be assured of
their job. average loan balance is for the 104,000 the bright future that a college degree
borrowers who have been making would provide for most graduates.
Borrowers who originally enrolled
payments for a minimum of ten years
in the income based Revised Pay as Slowly, ever slowly, students and their
and others for as long as 20 years and
You Earn Program (REPAYE) were still have student loan balances ranging families are starting to ask tough
automatically enrolled in Biden’s Saving from $54,000 to $98,000, it is obvious questions. Is a college education really
On a Valuable Education Program worth it? Does the end goal of a college
that something is very wrong with
(SAVE). Payments for this program will the “system”. Is the cost of a college degree justify the expense? And is it
be adjusted according to their income worth taking on tens of thousands of
education truly worth the decades of
and could be as low as $0 for those with dollars in debt in order to achieve it?

sacrifice necessary to potentially repay
very low income.
the debt? Many private sector and government
The most recent announcement that employers are waiving a college degree
Outstanding student loan balances,
125,000 borrowers will have $9 Billion individually and in total, have been as a requirement of employment. Th ey
in student loan debt erased is nothing are coming to the conclusion that
“having” a degree is no longer indicative
of having the necessary job skills to be
successful. Now the biggest attributes
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115 E Dover St. Ste 3 - Easton, MD For some professions, employers get
tolbert@baycapitalmortgage.com C. Tolbert Rowe, excited if employees just merely show
www.baycapitalmortgage.com NMLS Vice President/Lending up for work.
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Obviously, many professions need
410-819-3005 / cell 410-310-3520 employees who have attained a higher

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