It’s true, many high school graduates are questioning whether going to college for four years and incurring a student loan debt that can take most of their working career to pay off is worth it anymore. Since the pandemic, there have been 900,000 fewer students enrolled in undergraduate college four-year programs. For decades, getting a college degree after high school has been the mantra of many parents and high school and counselors as the road to success. But that is starting to change. And for good reason!
The Toolbelt Generation
So if the high school graduates of today are not choosing college, what are they doing? The answer is many are becoming part of the “toolbelt generation” by learning a trade. In a recent report by Junior Achievement and Citizens, they found 49% of the teenagers polled between the ages of 13 and 18 think that a high school diploma and a two-year degree or apprenticeship in a trade is the highest level of education they need to succeed in their career path. A full 56% believe that real-world experience and OJT or apprenticing is more beneficial than earning a college degree.
The younger generation is listening to the ones that have went before them and gotten a college degree. Now 86% of those with education debt agree that the toll student loans have had on their well-being was not worth the cost. And their student loan debt has been so crushing that it has prevented them from getting more post-secondary education for fear of incurring even more student debt.
Skilled Trades
According to the U.S. Department of Labor, in the nine years between 2012 and 2021, the number of students registered for apprenticeships rose by 64%. In just the last year – 2022 to 2023 – enrollment in vocational education programs rose 16%. And the good news is that the skilled trades industry needs this newly trained blood. Many currently in trades have aged out or will do so in the next few years, meaning there is a huge demand to support new people coming into the trades field. Another reason that makes the trades an appealing career choice is that the pay gap between white- and blue-collar jobs is closing. Plus, a graduate of a two-year trades program or apprenticeship has a higher chance of employment than a graduate with a four-year degree.
Closing the Pay Gap
Right now, the average starting salary of a newly skilled trades person ranges between $40,000 to $60,000 per year. Factors affecting the salary range include location, demand, the industry and level of experience. New four-year college graduates start at a range between $45,000 to $70,000 per year. So, in comparing the two ranges, it is entirely possible that a two-year trade graduate could start out at the same wage as a four-year college graduate and be working in the field for two years even before the four-year college student graduates.
Military members, if you plan on getting out in a few years, and are undecided which field will be your post-military career, give some serious consideration to learning a trade; or if you are a veteran looking for a career change.
You can use your GI Bill to get a two-year degree and not incur any student loan debt. On the other hand, attending a four-year private school, the Post 9/11 GI Bill only pays up to $28,937.09 per year; the cost of a year at some private colleges can be upward of $100,000 per year. Of course, public schools are more cost effective with their cost paid in full like in two-year programs, but you should know the extremes.
OJT/Apprenticeships
If you would rather choose the OJT/apprenticeship route instead of the vocational school route, the Post 9/11 GI Bill will pay for that also. With most VA-approved programs, you get a salary from your employer or union. As you gain more skills, that amount you are paid increases.
And you also get paid from Post 9/11 GI Bill. During an apprenticeship program, veteran students receive a monthly housing allowance (MHA) based on the location of the employer at the Department of Defense’s (DoD) Basic Allowance for Housing (BAH) rates for an E-5 with dependents.
Veterans at the highest Post 9/11 GI Bill tier receive 100% of the applicable MHA during the first six months of training. The MHA then decreases as follows:
- First 6 months – 100%
- Second 6 months – 80%
- Third 6 months – 60%
- Fourth 6 months – 40%
- Fifth 6 months – 20%
For example, if the MHA for your apprenticeship location is $2,000, you’d get $2,000/month for the first six months, $1,600/month for the next six months, and so on … provided that you are at the 100% Post 9//11 GI Bill tier – obtainable with three years of more of eligible service. If you are at a lesser tier than 100%, then you get the percentage that your authorized of the above amounts.
As far as tuition and fees, the Post-9/11 GI Bill pays employers up to 100% of tuition and fees for registered apprenticeships or OJT programs offered by employers. However, veterans also receive up to $1,000 per year for books and supplies while they are in an apprenticeship program. This amount is typically divided and paid according to the length of the training.
Learning a trade is a great way for veterans to serve their country again – only this time helping to continue to build America.
