May 24, 2024
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People are often told to go to college so they can get an education and hopefully a good job so they can live a comfortable life. But many young Americans are realizing it isn't that easy.
Abby Ferrell, who goes by @placeofpods on TikTok, posted a clip on Feb. 5 tearing up over this piece of advice.
“You just feel lied to,” the Texas resident said. “You thought that if you just went to college and got a degree, you’d be able to afford a house and things that make you happy.”
Ferrell, who says she has a biology degree, claims her post-college job barely pays her enough to cover her rent and groceries.
But is her situation unique or a nationwide trend?
Productivity vs. pay
It turns out that what Ferrell is experiencing is less about education and more about salary stagnation.
In another video, Ferrell talks about how her father was able to support a family of four and own seven acres of land on a $100,000 salary in the early-to-mid-2000s. But now, that may not be possible.
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Student loans bring you down
A college education also brings its own set of financial issues for many in the form of student debt.
Over 40% of people who attended college took out student loans, according to 2021 data from the Federal Reserve. The median amount they owed was between $20,000 and $24,999.
However, paying off your student loans doesn’t have to be as long and painful a process as you might think. Credible makes it easy to streamline your debt repayment at an affordable rate.
Through Credible’s online marketplace of vetted lenders, individuals can explore a variety of refinancing options tailored to their specific needs. By opting to refinance, you can potentially lower your monthly payments, decrease the amount of interest paid over time, and accelerate your path to becoming debt free.
Is college worth it?
Ferrell appears right that the old advice no longer holds: a college education is no guarantee for a high salary and material comfort.
But the education college does provide you can't be taken away. Legendary investor Warren Buffett, for example, argues that acquiring knowledge and skills provides something inflation-proof: a skillset that people will pay you for.
If you pursued higher education and developed a skill set but still find yourself unsure about how to maximize your income potential, it’s time to consider seeking guidance from a financial advisor.
WiserAdvisor matches you with vetted financial advisors suited to your unique needs.
With no fees to get started, you can easily compare advisors' matches using the comparison tool and schedule a free, no-obligation consultation.
The Moneywise Editorial Team is a group of passionate financial experts, seasoned journalists, and content creators who are deeply committed to providing unbiased, relevant, and accurate financial information. With years of combined industry experience, our team is dedicated to maintaining the highest journalistic standards and delivering informative and engaging content. From personal finance and investing to retirement planning and business finance, we cover a broad range of topics to suit the financial needs of our diverse readership. You can trust the Moneywise Editorial Team to empower you with the knowledge and tools necessary to make wise financial decisions.
