Current Event - Opportunity Cost
When thinking about the term opportunity cost or trade-off, many individuals know this to be choosing between two things, and ultimately losing something in choosing one alternative to another. That is exactly what opportunity cost is, choosing an option but losing the benefits of the other. As people, we do what we need to survive, and ultimately what is best for us and our futures. What some do not realize, is that we make these kinds of decisions on a daily basis, and one of the most important decisions it seems these days involves education.
There are many decisions involved in deciding ones educational approach. Some students look at how long a degree might take to complete (years wise), others may look at how much that degree will pay off in the long run (income wise), and then some may look at what degree they wish to pursue depending on their skills and love of the career they expect to gain.
The purpose of this review is to focus on the income level of graduates and the amount of student loan debt they incur.
Students often analyze the difference in the time it would take them to complete a degree and the amount of income they will earn in the future because of the degree they have obtained. The tricky part is that students do not take the time to calculate their future finances based on the time they took to complete school, and how much debt he/she has racked up in choosing a harder path in order to gain better future revenue. The bulk of what this review points out is that the opportunity cost for students who attend school longer do not actually make more in the long run.