Going Back to School in a Recession?
It’s easy to get a little freaked out by all of the news of recession. Just like any other bad news, “if it bleeds, it leads” and news organizations are going to try to capture your attention by making any economic downturn sound as bad as possible.
If you’re hesitating going back to school because you feel the future is too uncertain, or you don’t want to take on debt in a recession, remember that recessions are temporary; education is permanent.
Recessions Are Temporary
The economy naturally bounces up and down, and yes, we’re going to see some tightening up. Many companies will see slower growth, and that means they take on fewer new employees, and might not immediately replace employees they lose.
The job market will be tight for a year or two at least–and that’s exactly why this would be an ideal time, if you can swing it, to step out of the daily grind and return to school. By the time you’ve obtained that degree, things should be heading in the right direction again, and you’ll be in a great position to move forward in your career.
And even if the recession lasts a little longer than predicted, which would you rather be in a tighter job market–the person with that degree, or the person without one?
Education Is Permanent
When you’re making decisions about your career (and your life), try as much as possible to focus on what will endure. A degree–and the knowledge that represents–will serve you in good stead from time you obtain it until the day you retire, and possibly beyond.
Yes, it’s expensive. Yes, you may find that you’re taking on a significant amount of debt. But the advice not to take on debt during a recession applies to high-interest, non-deferrable debt like car payments or credit cards.
While you don’t ever want to be cavalier about your finances, you need to remember to amortize your college debt over your entire career. If you’ve made a solid, realistic plan for your professional future, and going back to college is part of that plan, you can go forward with confidence.
Remember that education is a permanent investment, both professional and personal. Don’t let short-term economic worry keep you from making a long-term investment in your future.
May 31st, 2008 at 6:39 pm
Hi,
I managed to get a full athletic scholarship with advice from this book.
Winning a Sports Scholarship
I highly recommend reading the book and following his advice.
September 16th, 2008 at 4:20 pm
But where are you getting the money for rent and books and tuition if it’s a recession? Getting you entire tuition on loan is not only very difficult if you don’t have any money… but also, this “long term investment” is going to turn into “long term debt”.
Americans being in debt is what caused the recession in the first place, and one of the reasons this “economic stimulus package did nothing (because many Americans had to spend it on rent, bills, and loan payments instead of something else.
Yes, it depends on what you want to do, but in about 8 years, I have a feeling a huge amount of people are going to have MBAs and other grad school degrees. At this point, your experience in the workplace will be valued as an asset and maybe your business will even pay for a higher level degree.
I’m not saying that you shouldn’t go back to school during a recession, but many people go back to school ‘because’ it’s a recession, and I think this may be a losing battle. Making 30,000 a year for two years will lead a bigger long-term investment. Because:
A. By that time you should be able to pull a promotion.
B. You’ll have money to actually invest in something (IRAs, commodities, foreign currency).
Believe it or not, going to school is a riskier investment than most of the above. I was saving more money at my more expensive apartment and lower paying job before my student loans kicked in. Now I’m living paycheck to paycheck and getting another degree is not an option in the least.
October 24th, 2008 at 12:05 am
Making 30k a year leaves very little for investments. I was promoted within a year from 32k to 40k. I lost my job and now I can’t find a position making 40k for what I was doing. I was already going to school part time for my bachelors but It was going to take 5 years at the part time rate. (i already had a AAS and 42 hours) Anyways this just happened and I have made to desicion to simplify my life and go back full time. I have no major expenses, so for me it will be easier of course. I own my car, not married, no debt.
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