Reporter Herb Weisbaum of NBC News out with a story “Putting Off Marriage, Not Buying a Home: How People Live with Student Debt.” His article references the Consumer Reports survey on student debt in which many past students questioned whether college was worth the money.

The story included a reference to NGPF and links to valuable tools and resources that we unearthed that can be so helpful to students and their families as they make this incredibly important decision: 

Some families can’t afford to send their children to college, but before you turn to loans, experts say, you need to go into this process with your eyes wide open.

“You must take cost into account up front,” said Tim Ranzetta, founder of a financial education non-profit, Next Gen Personal Finance. “Figure this out before you visit any college campuses: How are you going to finance this from all the sources, federal and state grants, scholarships and loans? “All too often, this is a year-by-year process. We made it through the freshman year, now let’s figure out how we’re going to pay for the sophomore year.”

To determine the appropriate amount of student debt, you need to estimate both the out-of- pocket costs and how much your chosen career is going to pay. The College Scorecard from the U.S. Department of Education makes that easy to do.NPR’s Planet Money shows the actual cost of going to 1,550 colleges in the U.S.

While a college degree is a real plus in the labor market, all degrees are not equal in their earning power.

The Hamilton Project estimated lifetime earnings for 80 college majors. Those with degrees in engineering, computer science, finance, nursing, marketing and business administration tend to earn above average wages. Many others, including psychology, English literature, elementary education, social work and theology are all well below average.

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Interested in learning more about student loans? Try this NGPF Activity on Student Loan Decision-Making

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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