It’s not surprising that young adults are hesitating to follow the traditional college path. “We’re starting to see more students who are undecided, or who feel they’ve missed valuable aspects of their education after being forced into remote learning during the pandemic,” explained Katie Heiden, CEO of RHK Construction in Aurora. “This shifting economy is struggling to consistently offer students an appropriate return on their investment in a college degree.”
With the prime interest rate surging to over 7%, with the potential to keep climbing, this is having a negative effect on borrowers, based on the current and future cost of unsubsidized loan rates that take effect this summer.
“During the last two years of high school, we should offer young adults a breakdown of projected income and expenses that they may face after graduation,” said Heiden. “Knowing what’s expected of them before having to make important decisions about their future will help them to create an appropriate life plan.”
Students can use this information to analyze their current wages, and to understand what the income gap looks like now and what it’ll look like after entering the workforce. This will include accounting for college costs and lost wages during that time; another consideration is that recent college remediation rates are over 25%, meaning approximately one in four students must take remedial courses early in their college career just to be prepared for other college coursework, which increases tuition costs.
“Even after graduation from college, not everyone is able to secure a job in their field - so how do we value that degree as this trend continues in the workplace?” added Heiden. “It’s time we have conversations with young adults about trade schools, licensing exams, and work certification courses for stronger wages after graduating high school before, or instead of, entering college.”
Find RHK Construction on March 23rd at Oswego High School’s “Career, College, and Trade Expo.” from 5-7pm.
For more information, please contact:
RHK Construction, Inc.
219 West Galena Blvd.
Aurora, IL 60506