The Truth About College Loans
Published: February 22, 2021
Author: Victoria Clark
Talk flowing from Capitol Hill these days about student-loan forgiveness has revived the debate on the value of higher education. A simple question frames the issue: “Is it worth it?”
Overwhelming evidence suggests that a college degree is indeed worth the investment.
Still, the public’s declining confidence in higher education coupled with reduced state funding for higher ed fuels doubt. My work in college admissions puts me in frequent conversations with families who fear taking on loans. I often hear students say, “I just don’t want to be paying off my loans forever.”
I find myself addressing common misconceptions. Here are a few:
“Colleges are overpriced. They charge outrageous fees so they can make a profit.”
Those of us who work at Greenville University don’t do it for a paycheck. If that were the case, we would be long gone. Many of us work here because we feel called to serve in various capacities-
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some for the satisfaction we receive in helping students;
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some for the joy we realize by pursuing an academic discipline in an environment that integrates faith with learning;
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some for the warm and welcoming community we’ve come to know and love.
Many of us work here because we believe this enterprise matters to God. We cherish the opportunity to create space for students to develop skills, grow strong in character, cultivate hearts to serve others, explore God’s call, and forge lifelong friendships.
“I don't need a college degree to get a good job.”
What constitutes “good” leaves room for interpretation. Certainly, job security figures into the mix.
A recent Forbes article says the COVID-19 pandemic may force 150 million people into poverty. August employment data from the Bureau of Labor Statistics adds this detail: Those with college degrees were twice as likely to keep their jobs than those without college degrees.
“Because Christian colleges are so expensive, their graduates remain burdened with debt longer than graduates from other schools.”
Data shows that alumni from Christian Colleges have a higher loan repayment rate and lower default rate than alumni from other institutions (CCCU Economic Impact Study). I believe this is because we fully invest ourselves in thoroughly preparing students for what comes next after college.
“Mark Zuckerberg, Michael Dell, and Steve Jobs didn’t go to college, so why should I?”
Realistically, most people aren't these guys; Zuckerberg, Dell, and Jobs are the outliers. But what about others?
Harvard Business Review says researchers were surprised to discover that 8% of 2,600 CEOs held no college degree. The degreeless leaders shared these traits:
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They held “deep expertise” in their industry-niches, often having grown up in the industry.
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They worked in sectors like sales that recognize and measure “outsized performance.”
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They hired great people.
The article also states that nearly a third of jobs that used to require a high school diploma now require a four-year college degree; a quarter of the jobs that previously required a bachelor’s now require a master’s.
Beyond the bottom line
Financial concerns aside, Greenville University’s hallmark community remains a powerful influence on graduates today just as it influenced the University’s first graduates more than 125 years ago. I write this on a day when our director of alumni relations received a note from a member of the Class of 2000, a successful college football coach, expressing his wonder at GU’s impact:
It is the greatest investment of time, resources, and relationship equity that I could have ever made-one that still pays more dividends than I could have ever imagined. When I talk to co-workers, or friends from “back home,” none of them have the relationships that I maintain from college. The number of [GU] folks that I talk to on a weekly or monthly basis is unbelievable . . . Our focus on servant leadership as an entire institution was incredibly impactful.
What prospective students don't ask but need to know
When I talk about GU’s hallmark community, it includes generations of graduates who fund scholarships that ease financial burdens for today’s students. Many recall the help they received as students. Last year our “Financial Champions” raised nearly $10 million for students, some funding scholarships valued at $20k per year. Their checks arrived in varied amounts from people in all walks of life, some with notes saying they pray for today’s students.
Beyond the financial implications that college is certainly still worth it, the investment for us here at GU goes so much deeper. It is about lifelong friends, lifelong mentors, and a lifelong relationship with God. Dollars just can’t measure these.
Victoria Clark is director of undergraduate admissions at Greenville University.
