Thinking About Going Back to School? How to Make a Good Decision
How to measure your choices
Readers of PFE are in different stages of life. Parents think about their children’s future, retirees help fund a grandchild’s 529 plan, and recent college grads give up personal and family time to leap a rung on the promotion ladder, going to night school. Most share a common interest in wondering if education is worth it. Indeed, education choices sometimes pay off, and sometimes, they do not. Taking on student loan debt without a positive payoff outcome is a risk, but how to consider the economics of the decision reduces the risk substantially.
Sammy, who works in communications, has a plan. Work a couple of years, then go back to school. He hopes to increase his stature….and his pay. Will he? It depends. In today’s set of pages, we release a general method for evaluating extra schooling or training. One finding: knowing the living standard effect is critical. A better decision could be to stay on course and avoid additional debt.
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Today: From high school to college or Bachelor to Master, the financial effect is measurable if done correctly. Following how to measure human capital is how human capital changes when returning to school means more tuition, fees, and the sacrifice of income in the short run for the potential of a higher salary in the long run….if the job market is robust for the type of education received.