It’s a dilemma that the majority of senior high school students, and some adults later in life, find themselves asking. Should you go into debt in exchange for a good education? It’s no secret that tuition costs in Canada are extremely high, and they’re no joke either. Earlier this month, students across the country held protests about the rising costs, saying that education in Canada was a right, not a privilege for a select (wealthy) few. Seeing as how tuition costs aren’t likely to go down any time soon, Canadians are left with the question of whether or not they should go to school at all, or start work right after high school; and start building wealth rather than constantly chasing it.
There’s no question that taking out a student loan or using some other form of borrowing is an investment. Just like taking out an Ottawa mortgage is an investment in your future, so too is an education. And while you may not be able to borrow against that investment, and it doesn’t exactly increase in value the way a home generally does, it’s still an investment in your future; and could still have huge pay-offs. So when is it right to go into debt for an education?
The first thing you need to consider is whether or not you know what you actually want to go to school for, and what you actually want your career to be when you graduate. Way too many people register for university and pay those high tuition fees, only to jump from course to course and major to major, because they don’t actually know what they want to do. Many of these people go to university right after high school because they think it’s what people do, or what’s expected of them. The problem is that, while jumping from course to course can be a lot of fun and keep you in those college years longer, it racks up a ton of debt, with thousands of dollars being added each year. It can’t be stressed enough that if you don’t know what you want to do, and you’re not sure of what you want to go to school for, you’re probably better off waiting until you are. While you’re waiting you can get a job and help you pay for that tuition once you do know where you want to be.
The next thing you need to look at is your chosen profession (once you know what that is.) How much does that chosen field make? Will it be enough to cover the tuition you had to spend in order to be in that field? And don’t only look at what professionals in that field make, but also how open that field will be when you graduate. Again, way too many people get a degree only to find out upon graduation that there are no jobs in that chosen field. This is no fault of their own of course. With the economy just starting to recover, and unemployment rates just starting to correct, there simply aren’t as many jobs out there as they once were. Do some research and find out whether or not there will be a job for you after graduation to help you pay off that loan you took out in order to get it.
People need to go to school, we’re not here trying to dispute that or tell anyone not to go to university. But it is important that you don’t start out a life of debt that will continue, or only be compounded by things like 2nd mortgages and other loans. Start smart, and chances are that you’ll be much better off in the long run.
