As the country emerges from the shadow
of the Great Recession, students may be wary about degree programs that
require a long-term financial commitment and result in sky high student
loans. Indeed, a July 2011 report from Moody's Analytics hints that
student debt may be the next bubble waiting to burst.
However, you don't need to take on the debt for a four-year degree when a two-year associate degree may be more likely to get you a job. That's the news from Louisiana, where a report highlighted employment trends among the state's recent graduates.
Sounding the alarm on student debt
Conventional wisdom has long held that borrowing for a degree is a smart move--one that undoubtedly opens doors to new jobs and greater earnings. With the Bureau of Labor Statistics (BLS) reporting a 9.1 percent unemployment rate in July 2011, conventional wisdom may need to be adjusted. In a fierce job market, even those with degrees can have difficulty finding jobs, and Moody's Analytics says when it comes to student debt, there can be too much of a good thing.
While lenders have been cautious about extending mortgage, auto and personal loans since the start of the recession, Moody's Analytics reports they don't seem to have the same qualms about extending student loan debt. In fact, student debt appeared to have accelerated during the Great Recession, conceivably as unemployed workers returned to the classroom in pursuit of a new degree that would hopefully land them a new job.
Ultimately, the Moody's Analytics report offers mixed signals. While the increase in student debt and poor performance of student loans is termed worrisome, the organization admits a less educated workforce would also put the country at an economic disadvantage. Fortunately, as the state of Louisiana demonstrates, it doesn't have to be an all or nothing proposition.
Borrow smarter, not longer
The 2011 Employment Outlook Report by the Louisiana Board of Regents provides a snapshot of college graduates in Louisiana. The report analyzes employment data from the classes of 2007, 2008, and 2009 at six months and 18 months after graduation. The surprising data from the Pelican State finds associate degrees may be the better bargain.
According to the report, 18 months after graduation, nearly 73 percent of 2009 graduates with an associate degree had found a job compared to only 50 percent of bachelor's degree grads. What's more, associate degree holders actually went on to earn more than those with a four-year degree. The 2011 Employment Outlook found the average annual wage of the 2009 class of bachelor's degree holders to be $32,742. Wages for associate degree holders were $35,544.
The lesson may be that while a degree can help you get a job, there is no reason to rack up four years of debt when you could be in and out of the classroom in two years. Although a bachelor's degree is necessary for many professions, some of the nation's hottest jobs require only a two year degree.
Career options with an associate degree
Finding the right degree program isn't hard when you know where the hot jobs are expected. Using data from the BLS, the U.S. Department of Labor reports the following careers are among the 50 fastest growing occupations in the nation for those with an associate degree:
Much has been made of the need for higher education in recent years. However, a degree doesn't have to mean four years in college. Moody's Analytics offers a reminder that students shouldn't borrow endlessly. Fortunately, Louisiana shows us that four years of loans isn't necessary for a successful career.
However, you don't need to take on the debt for a four-year degree when a two-year associate degree may be more likely to get you a job. That's the news from Louisiana, where a report highlighted employment trends among the state's recent graduates.
Sounding the alarm on student debt
Conventional wisdom has long held that borrowing for a degree is a smart move--one that undoubtedly opens doors to new jobs and greater earnings. With the Bureau of Labor Statistics (BLS) reporting a 9.1 percent unemployment rate in July 2011, conventional wisdom may need to be adjusted. In a fierce job market, even those with degrees can have difficulty finding jobs, and Moody's Analytics says when it comes to student debt, there can be too much of a good thing.
While lenders have been cautious about extending mortgage, auto and personal loans since the start of the recession, Moody's Analytics reports they don't seem to have the same qualms about extending student loan debt. In fact, student debt appeared to have accelerated during the Great Recession, conceivably as unemployed workers returned to the classroom in pursuit of a new degree that would hopefully land them a new job.
Ultimately, the Moody's Analytics report offers mixed signals. While the increase in student debt and poor performance of student loans is termed worrisome, the organization admits a less educated workforce would also put the country at an economic disadvantage. Fortunately, as the state of Louisiana demonstrates, it doesn't have to be an all or nothing proposition.
Borrow smarter, not longer
The 2011 Employment Outlook Report by the Louisiana Board of Regents provides a snapshot of college graduates in Louisiana. The report analyzes employment data from the classes of 2007, 2008, and 2009 at six months and 18 months after graduation. The surprising data from the Pelican State finds associate degrees may be the better bargain.
According to the report, 18 months after graduation, nearly 73 percent of 2009 graduates with an associate degree had found a job compared to only 50 percent of bachelor's degree grads. What's more, associate degree holders actually went on to earn more than those with a four-year degree. The 2011 Employment Outlook found the average annual wage of the 2009 class of bachelor's degree holders to be $32,742. Wages for associate degree holders were $35,544.
The lesson may be that while a degree can help you get a job, there is no reason to rack up four years of debt when you could be in and out of the classroom in two years. Although a bachelor's degree is necessary for many professions, some of the nation's hottest jobs require only a two year degree.
Career options with an associate degree
Finding the right degree program isn't hard when you know where the hot jobs are expected. Using data from the BLS, the U.S. Department of Labor reports the following careers are among the 50 fastest growing occupations in the nation for those with an associate degree:
- Dental hygienists
- Veterinary technologists and technicians
- Physical therapy assistants
- Environmental engineering technicians
- Paralegals and legal assistants
- Medical equipment repairers
Much has been made of the need for higher education in recent years. However, a degree doesn't have to mean four years in college. Moody's Analytics offers a reminder that students shouldn't borrow endlessly. Fortunately, Louisiana shows us that four years of loans isn't necessary for a successful career.
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