1102: College vs. Trades | Skeptical Sunday

Salary Insights

The discussion on salary comparisons reveals the financial landscape for different educational paths. Nick Pell highlights that trade school graduates earn a median salary of $67,000, while those with a four-year degree earn $77,000, compared to $47,000 for high school graduates 1. However, Jordan Harbinger points out the significant student loan debt that often accompanies a college degree, averaging $37,000 1. Pell also notes the geographical component affecting salaries, emphasizing that tradesmen often need to relocate for work, which can impact earnings 2.

There's no evidence that getting a degree causes you to earn more money. In fact, I think it's probably pretty close to the truth to say college isn't making anybody smarter.

--- Nick Pell

The conversation further explores how STEM and business majors tend to skew salary averages higher, while humanities majors, like French poetry, often earn less 3.

   

Loan Impact

The impact of student loans on financial returns is a critical aspect of the college versus trade school debate. Nick Pell explains that while advanced degrees can lead to higher earnings, they also result in significant debt, with master's degrees adding an average of $65,000 in student loans 4. Jordan Harbinger and Pell discuss the credentialing crisis, where a college degree is often necessary for entry-level jobs, despite not always correlating with job requirements 5. Pell highlights the disparities in earning potential based on the field of study, noting that technical degrees often offer better financial outcomes than humanities or social sciences 6.

The reality is you need a college degree to be an Excel drone in an office. It's just how it is.

--- Nick Pell

This underscores the importance of evaluating the true value of a degree beyond its cost.

   

Degree Costs

Advanced degrees present a complex cost-benefit scenario. Nick Pell notes that while PhDs and professional degrees generally lead to higher earnings, they also come with substantial debt and a lengthy time commitment 7. Pell and Jordan Harbinger discuss how STEM and business majors are among the most popular and financially rewarding, yet some of the lowest-paying majors are in fields like early childhood education 8. Pell emphasizes that the financial return on advanced degrees varies significantly depending on the field, with technical and practical degrees offering better prospects than those in the humanities 4.

The jump in income is about 500 bucks a week, which is about 24 grand a year.

--- Nick Pell

This highlights the need for careful consideration of career goals and financial implications when pursuing higher education.