University loan crisis diverts more students from four-year schools

University loan crisis diverts more students from four-year schools

Before the pandemic, college was given to many high school students. Now more and more people are discovering that there are affordable alternatives that may make sense.

Kate Lillemoyne, 21, recently completed a coding bootcamp instead of completing her four-year degree.

With certification from Tech Elevator, Lillemon now works as a software engineer in Columbus, Ohio.

“Price was definitely a factor,” Lilemon said of his decision to drop out of school and enroll in the 14-week program.

“If I had known what I knew now, I probably would have dropped out of college,” she said.

Kate Lillemoyne chose to attend a coding bootcamp instead of completing her college degree.

Source: Kate Lilemony

As college costs skyrocket, interest in these programs has increased during the coronavirus crisis. At the same time, more and more large employers, including Apple, Bank of America, Google and IBM, have stopped requiring a college degree.

“Before the pandemic, it was a pretty niche market,” said James Ryu, CEO of Stride Inc., the parent company of Tech Elevator.

“Over the past few years, we have expanded our offerings,” said Ryu. “We really believe that the skills required for most of the workforce will not be spent on a four-year degree.

“University will be a less viable option, in part because of the economy,” he said.

While some Stride offerings start at $ 1,000, Tech Elevator’s 14-week full-time program costs $ 15,950.

According to Glassdoor data, tech jobs are among the highest paying positions, even at the entry level.

More from Personal Finance:
Many companies offer tuition assistance
University plans to rebound, although cost remains a major concern
Here are the colleges with the most generous financial assistance

A recent survey of high school students found that the odds of attending a four-year-old school dropped nearly 20% in less than a year, from 71%, according to the ECMC group, to 53%. In order to help non-profit student borrowers.

Almost a third of high school students said the financial impact of the pandemic made it less likely that they would attend four years of college, according to the report. Students said they put more emphasis on job training and postgraduate employability.

More than half said they could be successful professionally with three years or less of college education, and just over a quarter believe that a four-year degree is the only route to a good job. The ECMC group interviewed over 1,000 high school students three times in the past year.

“There has been a significant shift in the selection of students on the traditional four-year path,” said Catherine Pastor, a school counselor in Flagstaff, Arizona.

The pastor, who worked at Flagstaff High School for 16 years, said about half of the students will go to a four-year institution after graduating. Today, that number has dropped from 35% to 40%. Others opt for community colleges, trade schools or certification programs.

“Last year everything changed completely in their world,” said the pastor. “Their priorities have changed because of the pandemic. “

The majority of high school and current college students said concerns about college affordability were impacting their post-high school college plans and this decline in college enrollment, according to a separate survey conducted by college students. citizens, which revealed about 2,000 current students. Or future students and parents.

There has been a significant change in the choice of students for the traditional four-year stream.

Catherine Pasteur

school counselor

“There are unprecedented opportunities for people to build great careers who maybe don’t have a full four-year degree and don’t have to borrow $ 100,000,” said Christine Roberts, Head of Student Loans. students at Citizens.

Overall, graduate enrollments fell more than 4% last year, down 13% from the previous year, with the biggest drop in the new category of decline, data shows from the National Student Clearinghouse Research Center.

This year, 63% of parents said their child’s high school plans were back to their pre-pandemic, according to another report from Discover Student Loans.

But the majority of those who changed their college plans said they would now go to a school closer to their home, attend an online university, or switch to a cheaper option.

Subscribe to CNBC on YouTube.



Please enter your comment!
Please enter your name here