While higher education has many benefits for a student's credentials and job opportunities, other considerations are necessary when investing in education. One of the more overlooked topics is future career earnings. Accumulating too much student loan debt in respects to career earnings can create financial distress.
Education in America
As occupations increase specialization, the need for extensive education is growing. In years past, a four year bachelor's degree in business was sufficient to secure a respectable job. Today, the need for increased job security and opportunity has pushed many students to complete their MBA.
Health professions, such as occupational therapy and physical therapy, needed only a 4 year bachelor's degree in the late 1990s. Today, that same degree requires a Master's and is currently transitioning to a seven year doctorate program. Universities looking to higher professors often require a PhD in their respected field, forcing interested candidates to commit tens of thousands of dollars and several years towards the goal.
Law School
A career path as a lawyer takes about seven years of schooling, resulting in loans sometimes in excess of $150,000. Even though the loan payments may be over $1,000 each month, the potential income of a lawyer is tremendous. According to Concord Law School in 2006, the average lawyer makes over $100,000 a year.
Furthermore, lawyers can establish a lucrative practice without the need for heavy upfront capital, such as in retail, construction, or healthcare. The value of a lawyer's time has tremendous monetary benefit, similar to that of physicians. Therefore, the time and financial investment meet the future earnings and justify the sacrifice.
