You know how one of the easiest ways to cut back on your grocery bill or on how much your spend at Target is to swap name-brand products for generics? It’s such an effortless way to save money, and it just makes sense: 99% of the time, the generic or store brand is nearly identical to the more expensive brand name – or it’s close enough that the average consumer wouldn’t be able to tell if they couldn’t see the label or packaging.
So why are the name brands more expensive? Well, you’re paying for all the expensive marketing and advertising efforts to build brand loyalty that goes into each and every item in that company’s product line. And once that is firmly established, the brand names can be more expensive simply because consumers will continue to pay for the name.
It’s a funny little phenomenon that happens in the consumer world. What’s a little more strange is that it applies to more than just what you pick up at the store.
Is a Name Brand Degree Worth It?
Consider the world of higher education. There are so many colleges and universities in the state of Virginia alone that I didn’t even bother counting how many were listed on Wikipedia. Obviously, more than just one or two are accredited and recognized by the powers that be. Equally as obvious is the fact that more than just one or two are familiar to people across the nation.
So why do tuition prices vary so drastically, and why are some students willing to go tens of thousands of dollars into debt to attend the most expensive ones?
Because they’ve been conditioned to believe the name-brand is better when that’s not unilaterally the case. At this point, they’re just paying for the name.
Now, I understand that this isn’t always the only reason a big college is pricier than a small college. There are many reasons schools like the University of Georgia and Georgia Tech are more expensive than other colleges in the state of Georgia.
But a lot of other factors go into determining what makes a great education, and a piece of paper that has the “name-brand” school on it isn’t the exclusive deciding factor.
I was born and raised in Georgia, and I thought UGA was absolutely going to be my school. And then I realized how much it cost. And then, even as a teenager, I was like, “yikes; never mind. That’s insane.”
Instead, I chose to go to a cheaper university closer to home – Kennesaw State University – where my tuition was almost entirely covered by three academic scholarships I had been awarded (these were from the state of Georgia, so they would have been applicable at any university – but they wouldn’t have gone nearly as far).
I went to a small college, even though I had been led to believe that I had to spend a lot of money for a good education. I’m glad I questioned what was generally accepted as true.
I had plenty of friends that went to UGA, and I had lots of other friends that attended KSU with me. Would you automatically assume the kids who went to the larger, name-brand university would be more successful in life and careers?
Some are. Some aren’t. What made the bigger difference in the level of their success in life after college wasn’t determined so much by where they walked across the stage at graduation to accept their degree; it was how much effort they seemed to put in to receive that degree.
I knew people who went to UGA who were unemployed two years after graduating. I knew people who went to Kennesaw State who immediately got ridiculously cool jobs in the city immediately after classes let out in May. Of course, the opposite is also true… which to me, means that paying for that fancy, name-brand college didn’t do much. The outcomes varied so much that it would be impossible to say that no matter what else happened, going to a big university would mean enjoying more success later in life.
The Name of Your School Only Matters So Much
The take-away lesson here is that what university you attend doesn’t have as much bearing on the years after you’ve graduated as the difference in cost of attendance would suggest.
If you have the means to pay for tuition at a big, brand-name university and that’s your dream school – great! Go for it and don’t let anything hold you back from being awesome.
But if you don’t have money to pay for that big, fancy, expensive college and you’re looking at tens of thousands of student loan debt to get you through, maybe it’s time to reconsider. There’s no reason to feel pressured into attending a university you can’t actually afford – not when there are countless other options, wonderful options, available to you.
Be Sure to Consider the Financial Implications
And the hole you’ll have to dig yourself out of from your student loan debt might be so deep that even the benefits of the bigger college – more networking opportunities and ability to build connections with influential people, for example – aren’t enough to help pull you out. You need to carefully analyze your situation and what you want to do in school before assuming you have to go to the biggest, “best” college at which you can get yourself accepted.
Consider asking yourself the following questions:
- How much is the name-brand college going to cost?
- How much debt will you have if you choose the more expensive school?
- What are your employment prospects after graduation?
- How much can you expect to make in your field?
- Will your expected salary range allow you to pay off your debts in a reasonable time frame?
Then, crunch the numbers. If the only jobs you’re likely to receive after graduation pay an average starting salary of $30,000, and yet you’re looking at $100,000+ worth of student loan debt, that math is just not working out for you. It’s time to look at less expensive options that will keep you out of debt while providing you with an education of equal quality.
As for me and my small, “generic” education? Well, I went to a small college and… I finished school with zero debt, picked up a full-time job complete with health and retirement benefits three months after graduating (and that was with a near useless history degree in a business-and-finance driven city, mind you), I earned multiple raises at that job, and made enough money to buy a house and start saving 40% of my income.
I also gained the knowledge and honed the skills that would allow me to start my own content management and freelance writing business, which I’m close to launching full-time. It’s my dream career and I couldn’t have done it without the education I received. Things are fantastic in my world and I couldn’t be happier.
All that from the small, inexpensive, off-brand college. Not too shabby, right?
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There are fancy, super expensive schools that people could go to for engineering…..I went to a fairly small state college. That state college happened to have a relationship with a big time technology company that got me an on-campus internship, which led to having a job waiting for me when I graduated. I’ve worked for IBM for almost 18 years now. Not bad at all.
Love that, Travis! You are truly living proof that it’s more up to the individual to determine their own success. A brand name college does not automatically make for a better education. Thanks for sharing your experience!
I loved the city of Boston and wanted to go to Boston University. The tuition was pretty high and I ended up going to a state university. I think I ended up fine…plus I went to grad school which makes where I went for undergrad not too important. The tuition most universities are charging these days is pretty ridiculous.
Good point, Andrew. I think if you’re planning on going to grad school it’s a smart money move to start with a smaller – and cheaper – undergraduate school. Save those big bucks for where they’ll make more of an impression
I totally agree that it matters much more how much you put into and get out of your own education than what school you attend. Being able to say that you attended some Ivy League school may sounds fancy, but does it always translate into big bucks? I don’t think so.
Agreed, Dee. Not to knock anyone who went to a big school, but I feel like the assumption is that’s the only option for a good education. Couldn’t have put it better myself that it really comes down to what the individual puts in – that’s what they’ll get out!
I went to a smaller, state school because I got more for my money there. I loved it! The smaller atmosphere really allowed me to shine. I felt like I had an impact, which motivated me to do more. Best 4 years of my life. My 4 year scholarship allowed me to finish undergrad and grad school at once.
I did have the option to go to “fancier” schools but I decided against it, due to the financial hardship. I’m glad, because I can’t imagine paying student loan bills on top of all the bills we have already. Life choices add up really quickly, before you realize it, you working to not get behind on it all.
Great story! I was in a similar situation to you — I got accepted to a few of the elite colleges, but the cost was just too significant and I didn’t want to be just another random student. The school I did attend was still fantastic, but didn’t have that immediate brand-name recognition, and I was able to get out of there with nearly zero student loans and was able to really become involved in ways that I wouldn’t have at the Ivy League schools (VP of the student government, etc.)
I agree with you on this 100% I went to a small school and landed a job at one of the biggest pharmaceutical companies in the world. I have the same job and the same pay as other co-workers that went to more prestigious schools.
The school you go to has little to do with what you know and how you apply your knowledge.
Since I work at a pharmaceutical company I can tell you that generics are the same as so called brand names. That doesn’t mean that you should buy drugs from just any country as some don’t go through the strict regulations that U.S. and European countries go through, but if they sell it in the U.S. then you’re good to go.
It’s all about your work ethic and how much you learn on the job — no question about it. Your college might help you land that very first job, but after that who really cares, right? I suppose it might be impressive to some people when you can say, “I went to Harvard (Duke, Stanford, MIT, etc.)”, but beyond that, people care about what you think and know right now, not how smart you were at 17 to get accepted to these schools…