To ease the worries of college students, one must invest wisely with an income guarantee upon admission to a university.
Generations of divisive politics have manifested a toll on our relationships with traditional institutions like universities. Only 60% of young Americans said yes when asked if college provided the best path to future success. This is despite data showing that a college degree remains the surest path to achieving financial success, economic freedom, and stability.
That is why it is important to frame college as an investment. To ease the worries of college students, one must invest wisely with an income guarantee upon admission to a university. Here, accepted students are greeted with a 5-year earnings guarantee upon graduation.
Still not convinced? Here’s a closer look as to why an income guarantee should be on your college decision checklist.
The concerns of young Americans are not entirely misplaced. A recent survey found that 45% of recent and impending U.S. college graduates are still looking for a job. Experts posit that this is partly to do with a disconnect in location, degrees, and competition. Statistics also show us that more than half of college graduates don’t work in the field they studied. A quarter make less than $35,000 a year, with many close to the poverty line, whereas 41% of recent grads work in jobs that don’t require a degree.
With how student-loan debts are ballooning, it’s natural that more students and parents are debating whether or not a college degree is worth it. This is because at least 30 million U.S. workers without college diplomas have the skills necessary to earn 70% more if only they weren’t held back by employer education requirements.
Having a college degree is important, but it isn’t enough. By taking into account an income guarantee, factors like location, degrees, and competition or even workplace discrimination in race and gender can be overcome. Students covered by the deal will have the average annual income for their academic field guaranteed for the first few years post-graduation so that they can confidently make career decisions and build their position within the industry.
In line with the above, the main principle behind an income guarantee is that students feel confident while studying. This counters the narrative that “college isn’t working for me” and reduces the dropout rate.
This gives students and their families the best chance of increased earnings and security. In the event that a graduate’s degree does fail to provide the anticipated growth, Degree Insurance will pay the difference and provide a claim. This will give the learner an opportunity to reset their life by reducing their student debt or enrolling in graduate school.
The good news is that more colleges are offering this. Augustana College is in the middle of piloting post-graduation income insurance with Degree Insurance as they guarantee to students that they’ll see an ROI from their studies. This is a wholly new direction for higher education and various students, parents, and colleges can learn more about this option on our page.
Part of our service covers when a graduate’s degree fails to provide the anticipated growth in terms of career opportunity and trajectory. In this case, our Degree Insurance will pay a claim giving that learner an opportunity to reset their life, reduce their student debt, or enroll again. In order to further mitigate this risk it is best to look for a degree that has a direct link to industries that carry a positive income outlook.
For example, careers that have to do with professional fluency are one, especially due to the increased relevancy of soft skills across industries. The job project for speech language pathologists is 21% (much faster than average). Those who want a career as a speech language pathologist can find work in multiple industries including schools, doctors’ offices, hospitals, and more, making the chances of getting a job much higher.
On the other hand, careers that have to do with the management of oil and gas resources are another example due to society’s increasing reliance on scarcity in terms of resources at the moment. Petroleum engineers earn an average salary of $154,330, a comparable amount to civil engineers’ $95,440 or environmental engineering technicians’ $56,570. This could competitively match the salary of a computer hardware engineer, whose median annual wage sits at $128,170 after the increased demand for all computer and data-related jobs in the digital age. By basing your degree around in-demand careers, alongside an income guarantee, students will have the best chance of not being in financial difficulty straight out of university.
As the above article shows, the career path of students post-university is very difficult. By ensuring that income guarantee is part of your checklist, and pursuing jobs that are high in demand, you will have a greater chance of a financially rewarding future.
written for DegreeInsurance.co
by River Jade
River Jade is a dynamic writer whose passion is to help students decide on potential degrees that they should pursue in college. She believes that pursing a certain degree is more than a meal ticket, but it’s supposed to be a flourishing career that will help you grow personally and financially. On her spare time, she likes to attend some gigs and concerts.