Is Deperio’s Criticism of Schools Advising on Student Debt Reasonable?

Arnold Deperio's critique of colleges and universities in not advising students to be cautious about incurring student debt for classes that do not promise well-paying jobs post-graduation is multifaceted and reflective of broader concerns within higher education. It raises important questions about the role of academic institutions in preparing students for both their academic and professional futures.

Is It Wise to Incur Debt for Professor-unsanctioned Degrees?

Deperio is correct that embarking on a college degree that lacks the promise of stable, well-paying employment can be financially detrimental. According to him, choosing majors such as engineering, medicine, pharmacy, architecture, law, and education are crucial career paths. However, the notion that students ought to be discouraged from exploring various fields is inherently flawed. The world and job market are diverse, with evolving needs and opportunities. Diversifying one's educational base can be a strategic decision for future adaptability and resilience.

Myth vs. Reality: The Importance of Majors

Dispelling the myth that professions and majors matter significantly when it comes to employment is important. In reality, most professional careers and employers place a high value on having a bachelor’s degree, rather than the specific major. Data often illustrates that graduates from humanities can out-earn those with degrees in business or STEM fields. For instance, according to a study published in New York Times, humanities graduates often top the income charts. Thus, suggesting that a degree from a non-STEM or business major is worthless is an oversimplification of real-life outcomes.

The Transparency Gap in Financial Aid Knowledge

The argument that colleges are not adequately advising students about loan debts is also well-taken. Many higher education financial aid workers are constrained by the limitations of their own position. They work diligently to find grant opportunities to minimize student debt, but the responsibility of understanding financial aid ultimately lies with the student. It is startling to hear anecdotes of students who do not know essential information about their financial aid packages. For instance, students frequently asking if they are taking loans despite access to the information through award letters is concerning. This suggests a significant gap in student literacy regarding the financial commitments associated with higher education.

Financial Planning and the Role of Parents

Parents play an crucial role in guiding students beyond high school and into college, and this includes financial planning. Starting the financial education conversation as early as middle school is essential. There are several models and programs that can serve as a framework for this education. One such example is Dave Ramsey's Financial Peace University. While Ramsey has a strong following and well-regarded financial advice, it is important to critically evaluate and supplement his model with more tailored guidance for the unique challenges of college planning.

Delegating Career Planning: A Telemarketer's Job?

It would be unwise to expect colleges and universities to shoulder the primary responsibility for career planning and financial literacy. Such a role would indeed be akin to the proverbial “fox guarding the henhouse.” Financial planning for college is a complex, multi-year, multi-figure project with a high failure rate. It is a process that should involve active participation from parents, students, and financial experts, rather than being the sole domain of educational institutions. While schools can provide valuable resources and guidance, they should not be held solely responsible for ensuring students are financially prepared for college.

Conclusion

Arnold Deperio raises valid concerns about the necessity of cautious financial planning before entering college. Choices of major and degree can significantly impact a student's future, and it is indeed the responsibility of both students and their parents to be well-informed. However, expecting academic institutions to act as the sole financial advisors is neither practical nor advisable. A collaborative and well-informed approach that includes early financial literacy education, financial aid counseling, and ongoing support from parents can better prepare students for the financial challenges of higher education and beyond.