Obama’s Student Loan Debt Repayment Program

According to the Washington Post, total outstanding student debt has passed $1 trillion, more than the nation’s credit card debt, and average indebtedness for students is rising. While I’ve often written about whether college is beneficial in modern society (where some of the most successful and wealthiest entrepreneurs are college drop outs), for many there is proven long-term fiscal value of a degree. But not everyone can afford to pay outright for skyrocketing tuition costs.

  • Public four-year colleges charge, on average, $7,605 per year in tuition and fees for in-state students. The average surcharge for full-time out-of-state students at these institutions is $11,990.
  • Private nonprofit four-year colleges charge, on average, $27,293 per year in tuition and fees.
  • Public two-year colleges charge, on average, $2,713 per year in tuition and fees.

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10 Reasons Why a Theatre BFA is a Smart Move

For all the reasons why “getting a liberal arts degree” is a “waste of money” (I’ve heard them all), here are 10 reasons why getting a bachelors in theatre arts is actually a smart thing to do, in terms of your career.

1. Improvisation Skills are Golden in your Professional Life
When it comes down to it, everything in life is sales — regardless of your job. First, you have to sell yourself to get the job. Then, you have to sell your ideas to move up in your career. Improv teaches you to never say “no” in a situation, and instead to say “yes, and…” and think on your feet. It’s a hugely important skill in all aspects of business.

2. Direct Actors and You Can Manage Anything
Actors tend to be among the most difficult people to work with — with egos, I’ve found, only comparable to top-level execs. By managing actors (as a director, or even assistant), you learn how to placate their egos while still getting what you want. If you can accomplish this, you’ve learned 80% of skills needed to be a good manager.

3. You’ll Learn How to Budget Wisely
Unless you’re producing Spiderman on Broadway (and even then) you’ll have a limited budget to work with, all while having to create or source costumes, set pieces, lighting and more. By working with a tight budget for a project, you’ll learn how to prioritize where to put the money, and explain why you are making these choices.

4. There’s Never Enough Time, and That’s OK
Theatre people know that from the first read through of a script to opening night is never enough time. There are always freak outs during “hell week” (the week before opening) yet somehow every time things fall together and the show opens. By going through this process a couple of times, you learn to trust how things fall together as long as you have a team that’s committed to getting something done, regardless of your time or resources.

5. You are Your Brand, Write Your Professional Character
More than ever, your professional trajectory is largely tied to your personal brand. What is that brand? It’s a combination of a few things — your schooling and resume, but also the story you present to the world through social networks and events. As a theatre major, you’ll learn plenty about character development, and how to build believable identities as a playwright and/or actor.

6. You’ll Feel at Home in Front of a Crowd
Business leaders are often skilled presenters. They have charisma (or know how to fake it) and can transfix an audience with their presence. As a theater major, you’ll have lots of time to hone your “on stage” skills, so you’ll be ready for any career that requires you to make presentations.

7. A Theater Degree is More Practical than Most Liberal Arts Degrees
The argument against liberal arts degrees is that they’re not practical. If you major in English, you may read a lot, research and write papers, but chances are you won’t be working in a collaborative environment on larger projects (unless you seek out those opportunities.) Theater is inherently a project-based degree, and a collaborative one at that. You will be forced to work with other people to build something. That gives you a lot to talk about at job interviews, even if you haven’t had a lot of other professional experiences.

8. Theatre Teaches You How to Become an Expert at Everything
When preparing for a role, directing a play, writing a play, or researching for design, you’re fast learning a lot about subjects you’ve often never heard of before. This forces you to become a quick study — perhaps a Jack of All Trades, Master of None — but you’re certainly able to pick up enough information on any topic quickly enough instead of worrying about being a super-expert before discussing a topic.

9.  Don’t Underestimate the Value of Creativity
Theatre majors are required to be creative on a daily basis. In the modern business world, thinking outside the box is often a necessity to solve the challenges that are present in many industries today. While strict academics may struggle to brainstorm and come up with a lot of options for how to attack a given situation, a theatre major is likely able to use their experience of thinking on their feet to offer new insights that others could not.

10. You Can Always “Fall Back on Broadway”
For many theatre majors, a career in theatre – or a related field such as the entertainment industry – is not just a fantasy. Many of the people I went to school with are successfully working on stage and off in the industry. Making a living as an actor IS really tough, but there are plenty of jobs in design, stage management, production, and the business side of theatre. In reality a theatre degree is a lot more of a business degree than most liberal arts majors.

 

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Personal Finance Should Be Taught in High School

President Obama, watching over years of personal finance deterioration due to Americans largely not understanding how to manage their finances, has declared April Financial Literacy Month.

Americans’ ability to build a secure future for themselves and their families requires the navigation of an increasingly complex financial system.  As we recover from the worst economic crisis in generations, it is more important than ever to be knowledgeable about the consequences of our financial decisions.  During National Financial Literacy Month, we recommit to improving financial literacy and ensuring all Americans have access to trustworthy financial services and products. — President Obama

It’s all well and good that Obama has declared April Financial Literacy Month, but that isn’t going to go a long way in educating teens and 20 somethings about how to mange their money. Thank goodness for the Internet, and personal finance bloggers. While news articles on retirement investing are generally targeted at 40-60 somethings, the news content on the web teaching about personal finance to those of us in our 20s in slim. Without the personal finance blogs I found in my early 20s, I would have never opened up a Roth IRA, a separate investing account, or bothered to explore my investment options outside of CDs. Retirement hadn’t even crossed my mind. Continue reading

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Should Everyone Go to College?

My alma mater, a private midwest college with a strong arts program, recently announced that it is raising tuition to $30k a year. While this is quite high, other private schools in the area also announced tuition hikes… The University of Chicago raised tuition to 4% to $55,416 for 2011-2012 and beyond.

At least the students at The University of Chicago have high odds to earn back their extremely high tuition fee… but what about the others of us who are not Ivy League material? Is it worth it to pay $100k – $250k for a college degree?

We were raised to think YES, but some are now arguing the opposite. In The Atlantic, Professor X returns to further on his original controversial article “In the Basement of the Ivory Tower: University education for everyone is a destructive myth.” Professor X is a professor at a “college of last resort,” he calls it. In 2008, he wrote:

“I wonder, sometimes, at the conclusion of a course, when I fail nine out of 15 students, whether the college will send me a note either (1) informing me of a serious bottleneck in the march toward commencement and demanding that I pass more students, or (2) commending me on my fiscal ingenuity—my high failure rate forces students to pay for classes two or three times over.

What actually happens is that nothing happens. I feel no pressure from the colleges in either direction. My department chairpersons, on those rare occasions when I see them, are friendly, even warm. They don’t mention all those students who have failed my courses, and I don’t bring them up. There seems, as is often the case in colleges, to be a huge gulf between academia and reality. No one is thinking about the larger implications, let alone the morality, of admitting so many students to classes they cannot possibly pass.”

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Dilemma: Grad School vs. Work

Some say a graduate degree (in the right subject) can improve your future potential earnings. But I wonder if taking 2-3 years out of my career right now would actually equal more money in the long term.

Assuming I’d be missing out on an earning potential of $100k per year (let’s call that $60k after tax) and I go to school for 2 years. That’s -$120k plus -$50k per year on school and other costs So In the course of two years I’d be out $220k, give or take.

Let’s say I manage to save half of the money I earn, or $30k a year, $60k total. In 30 years at 5% annual compound interest rate, by the time I’m 60 I’d have $259,316 just from that $60k. Ok, that’s not too impressive — in theory I could make a lot more with a grad degree such as an MBA, which is one potential route.) But I’d also be $100k in debt. Ok, so how does that really add up…

Sans Grad School,
Investing $30k per year for next 30 years:
$2,222,481 by age 57

With Grad School,
assuming -$30k savings lost per year in school
plus $100k in student loans
Income increase to $150k / year, $90k after tax
Savings start 2 years later @ 29
Can save $50k / year after loan repayments
3,066,135.60, by age 57 – 259,316 in lost investment earnings

BUT — it’s really hard to say if that’s actually true. That’s assuming a lot of other variables that are unknown. Namely, it’s quite possible for my income to go up WITHOUT a graduate degree, and for my income to go down WITH one. Over the long run I believe a graduate degree would make my yearly income a bit more predictable (but not by much) and give me opportunities to pursue better paying jobs, but that doesn’t mean I will want to take them. But the two years I am in school may be two years I could have spent at a startup that ends up having a successful exit, and thus the grad school would never be able to equal the fiscal value of those lost years (not to mention the experience may be professionally just as valuable, at least in getting a job, as the degree.)

So the truth is the choice of grad school shouldn’t be about money. Clearly if I get a graduate degree and use it to find a better paying job over the long term it could mean a larger retirement nestegg. But it’s not a certain to say the least, and right now the experience and opportunities outside of graduate study are.

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