We all know there are some serious issues surrounding anything dealing with money these days. And a majority of these issues are making us rethink ideas we've always had about finances. Sure, some people have a vast knowledge of finances and have always known how to properly handle their money, but obviously there is a huge number of people who don't. So we rely on "common knowledge" - if a loan officer tells you that you can afford the house, you can. You should take whatever job makes you happy, or better yet, start your own business. And education is always a good investment, even if you have to accrue "good" debt.

The problem is it's not that easy. Let's tackle this issue in two parts: undergraduate education and graduate education. First of all, I think no willing person should be denied an undergraduate education regardless of how much they can afford. There are so many different circumstances to consider, but, ideally, everyone with a 3.0 and financial need would end up with a Bachelor's degree in the subject of their choosing. California's way to do this was with the California State University system, which is experience huge cutbacks like most schools across the nation. The difference is, CSUs were meant to enable almost any high school graduate to go to college. Right now everyone is working frantically to make sure that still happens - though it looks like its going to mean a 20% fee hike. Luckily, this will only really affect families with incomes of $70,000 or higher, but it still could very realistically discourage young adults to pursue a degree. This is only one university system, but the situation is symbolic of the plight of many other colleges and universities in the nation. Despite the increased cost of a college degree, I think that it is still a great investment, no matter the major or specialization. However, more thought does need to be placed on how dedicated the student will be. It's not worth it to putz around for 6 years drinking 5 days a week, but switching majors halfway through to something you love and are passionate about (or leaving a major that is just too hard) is worth it. Also, although I do like the idea of accessible education for all, realistically the ones who should get it are the ones who work hard. Therefore, I applaud the suggestions to increase the GPA requirement, necessitate 2 years of community college first, or require more classes in high school as a way to cut back on the number of students enrolled which could decrease fee hikes.

Graduate education is a whole new ballgame. First and foremost, it's usually much more expensive. Secondly, many people return to get their graduate degree after working for a few years after undergrad - they may have more expenses to worry about that a 19-year-old college student. Finally, it's hard enough to find a job as it is; spending all that money on a Master's or professional degree might not make it any easier. At the very least, even if you do find a job with your degree, it might be with a Bachelor's degree salary. So is it a good investment? Well, with 55% of graduate students accepting loans in the 2007-2008 school year (85% for students getting professional degrees!) and the average credit card balance for a grad student being $8000, I would say it needs to be a very careful decision. If you can get into a grad program that will pay you to research, for instance, that will help minimize the debt. However if you are thinking about grad school to be in a place to make more money later, it might be smarter to delay school for a few years until the economy gets better and you can be sure you can get a job that pays what you deserve.

What other factors have you thought about when considering grad school while concerned about money? Do you still think grad school is always a great option? What about getting a bachelor's degree - is it always worth it even if you go into debt?

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