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Comment by dnsworks | Hacker News Reader

"It isn't going to be as bad as the housing market crash, because degrees are revenue producing assets for the overwhelming majority of people and houses are costs for the overwhelming majority of people. Also, student loans do not have any mechanisms in them which are designed to induce payment shock, like ARM resets are. (I am only half sardonic there.)"

Degrees clearly are great revenue producing machines for the portion of the workforce currently unemployed with degrees. I remember a few years ago, "The housing market can't crash, it's impossible, it's the only safe investment vehicle after all of those silly tech stocks".

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"Degrees clearly are great revenue producing machines for the portion of the workforce currently unemployed with degrees."

The unemployment rate for degree-holders in the US is currently 4.5%, compared to 10.5% overall. The bulk of the unemployed are in blue-collar sectors and among those who have graduated with a high school diploma or less. We can argue about what is or isn't an "acceptable rate" of unemployment, but typically for America it's been 4-5% unemployment. That even in this Great Recession, degree-holding citizen unemployment sits within the "acceptable" range, tells you that there is tons of value to getting better educated in this country at this time, and even in this climate.

Forgive me, "I'm 50% less likely to be unemployed in a bad recession if I go $200k into debt for college". You have me sold, where do I sign up?

Definitely not at the college that puts you 200k in debt. Not everyone goes to Harvard.

One of my friends is finishing up her P.hD in entymology at Cal and she's somewhere around $175k in debt now with no expectation of ever making more than $50k/year in her field (if she can work in it at all). Another went to a private university for undergrad, then Temple for Med school, she's just now gone through Match and is around $225k in debt. She's chosen a career path that once through her residency (with a $40k/year salary expectation for 5 years through a triple-discipline program) should land her a comfortable $250k/year salary in the middle of nowhere. The $225k she'll have was a good investment, but my friend who likes beetles?She expects to pay 20-25% of her salary to pay it off for the rest of her life.

But as the parent stated later in his post, not only do college graduates earn more money, but the unemployment rate of college graduates is also far below the average unemployment rate.

In fact, it looks like the unemployment rate for college-educated workers is falling:

http://blogs.reuters.com/great-debate/2010/07/28/high-unempl...

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