Teens Opt Out of Work

Numbers Declining

According to the US Department of Labor, for the first time in 60 years, the percentage of working teens has dropped below 50 percent from the available age group. In 2000, over 60 percent available teens entered the summer job market.

Part of the drop in summer work interest is the need for teens to take additional or advanced education courses in order to get ready for college or to compliment high school courses. Teens and their families realize that their future depends on educational readiness. It is estimated that about 38 percent of teens are taking more coursework this summer. That’s about 3 times more than 20 years ago.

While some authorities, notably those with a vested interest in cheap labor, argue that summer work adds to teens’ experiences and builds tolerance for diversity in age and race, education scholars agree that summer work is more distracting than helpful. If you are an educator or a parent of a teen, take a look at Beyond the Classroom by Temple University psychologist Laurence Steinberg, Ph.D. After reading his arguments, you’ll be less likely to support the notion of working teens as an American tradition.

Rarely can a summer job add value to a person’s résumé unless that person has supervised a group of workers. A teen would draw more attention and accolades by volunteering time to a worthwhile community project. Add the traditional low wages and work tends to be more about lost time than money that can be used for education.

There was a time when summer jobs could go a long way to paying for college. Before the collapse of manufacturing in the US, high school students had a quality choice between college and employment. With the competition for “bodies” college costs were very affordable. I worked a summer job unloading box cars for General Foods at $7 dollars per hour. A summer of work netted over $3500 (including overtime). What was my tuition at the University of Delaware? An extremely reasonable $500 per year for two semesters of unlimited credits. That lead to a college degree in four years for around $2000 with no debt of any kind. That would be a very difficult task today without significant family support.

Paying for College

Starting July 2007, variable rates are 7.22 percent for student loans and 8.02 percent for parent loans. Federal student loans have 10-year repayment terms while consolidated student loans (7.25 percent currently) can be repaid over 12 to 30 years depending on the amount of the loan. For example, a $40,000 loan can be repaid over a 25-year term.

The average cumulative debt for all programs of higher education is $42,406 according to FinAid.org. A Ph.D. will set you back around $41,540, while a graduate law degree costs around $80 thousand and a medical degree well over $125 thousand.

Ironically, the higher the income a person makes after graduation, the less likely the student loans will be tax deductible. Tax deductions phase out between $55,000 and $70,000 on individual returns.

If you need to declare bankruptcy, student loans still need to be repaid. Only in the most desperate of situations will student loans be forgiven.

The bottom line is that college is expensive and paying for college has many options and pitfalls. As was revealed recently in the investigation of the college-based preferred lender scandal, it is hard to find people who are honest and will act with integrity in guiding you through this process.

When it comes to money and financing, do your homework and know what options make the most sense. Depending on others may lead to a very costly mistake.

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