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The latest news, trends and information to help you with your recruiting efforts.

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Posted November 19, 2019 by

Why are so many parents obsessed with getting their kids into ‘elite’ schools?

Parents and students are obsessed with getting into the “best” college or university largely for status reasons but also for rational, economic reasons. Somehow, if your kid gets into an elite university, that makes you a better parent in the eyes of some, but that’s truly unfortunate has allowed the banks and higher education industries to redistribute to themselves and their shareholders enormous amounts of wealth from the middle class. 

However, there are good, rational, economic reasons to enroll in and graduate from an elite college: your chances are higher of landing a well-paying job with a well known and respected employer. Most of the best known and respected employers recruit the bulk of their professional, entry-level talent from colleges and universities and for decades they’ve done so largely by sending recruiters and hiring managers to interview on college campuses.

Fortunately, an increasing minority of employers are looking at their outcomes data — which employees are the most productive — and are finding that there is a weak and sometimes negative correlation between the perceived quality of the school and productivity of the employee. That is leading these employees to become school agnostic, meaning that they are being more inclusive in their hiring by reducing or eliminating their on-campus hiring efforts in favor of hiring through job boards and other Internet sites. 

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Posted November 12, 2019 by

Why do so many college grads live with their parents?

The average college grad earns about $46,000 a year. That sounds quite high to most Americans, because it is also the average income earned by most families.

But if you dig into the college grad’s finances, you’ll quickly see that they’re likely to live in poverty. Why? Because the student debt of a graduate from a first or second tier, four-year college or university can easily exceed $100,000 and often approaches $200,000. It is common for tuition to be at least $25,000 and often more than $50,000 a year. Add to that room, board, books, travel to/from the city your family lives in and you’re looking at $40,000 to $65,000 a year. Multiply that by four years and you’re at $160,000 to $220,000 in debt.

If your student loans are payable in 20 years, which is common, and your interest rate is eight percent, which is also common, you’re looking at $2,000 per month for student loan payments. Over 12 months, that’s $24,000.

So, suddenly, that $46,000 a year gives you the earning power of someone making $22,000 a year, which is less than the average, full-time, Uber driver nets.

Posted November 05, 2019 by

Do this year’s college grads face the likelihood of crippling debt and delinquent repayments?

The student debt that Millennials and now Gen Z have and are incurring is crippling and, long-term, could financially devastate an entire generation. Those who went to college in the 1980s or earlier simply can’t relate as the cost to attend college then could be covered by working part-time as a waiter or bartender and any debt they graduated with could be repaid within a handful of years working at a job that paid well but not even great.

Today’s students are often attending schools that charge $25,000 or more per year plus another $15,000 in related costs such as traveling to and from school each semester, rent, food, and books. A four-year degree, therefore, often costs $160,000. Part-time jobs typically pay about $10 per hour. At 20-hours a week, that’s $41,600 over four years, so about $120,000 needs to be financed. Student loans often carry interest rates of eight percent or more, so over 20-years the average student is going to see about half of their gross wages disappear to repay the principal plus interest on their student debt.

The end results is that the average graduate of a four-year college or university is effectively being asked to live on about $25,000 per year. If they run into any unexpected, significant expenses like the need to replace a car or have surgery, then there is a very real possibility of them falling into delinquency. Many of the student loans then charge huge penalties, including significantly higher interest rates. So if you miss a payment one or two times, your already exorbitant interest rate of eight can easily escalate to 16 percent and then 24 percent. Before you know it, you’re paying 24 percent interest on a six-figure loan that is non-dischargeable in bankruptcy. If that’s not a recipe for financial disaster, I don’t know what is.

Posted October 24, 2019 by

Chipotle now covering 100% of tuition costs, even for part-time employees

It isn’t hard to admit: I’ve been a fan of Chipotle’s food since it opened a restaurant near my home about a decade ago.

If you’ve never been, think Subway but for burritos, tacos, and tortilla-less meals served in a bowl. Think concrete floors and lots of stainless steel. Think freshly cooked, savory meats. Think fresh, yummy guacamole. But I digress into a hunger causing diatribe.

Working in a restaurant — any restaurant — is not for the faint of heart. The work is usually fast-paced, customers can be jerks, and the hours often very early or very late. But it is good, honest, hard work. Every minute of every day your work is appreciated by customers who want a little treat, either in the sense of rewarding themselves or rewarding their taste buds. Or both.

Keeping workers happy and retaining them is an incredible challenge for almost all restaurants, especially those whose pay is at the lower end of the scale, which includes almost all fast-food restaurants. Let’s face it, you’re not going to get rich working in a fast-food restaurant, but you’ll earn your pay, you won’t get bored, and you’ll almost certainly make some great friends amongst your co-workers.

But now there’s another benefit to working at a fast-food restaurant. To be clear, not just any fast-food restaurant. Just Chipotle. At least for now. Chipotle, consistent with its mission to Cultivate a Better World, just announced an incredible tuition reimbursement program. Together with Guild Education, Chipotle will cover 100 percent of college tuition costs for all eligible employees, including hourly (crew) members. When I read that, I skeptically thought, “Yeah, but who will be eligible?” I’m often wrong, and this was one of the many times when I was very happy to be wrong.

The news here isn’t that Chipotle has a tuition reimbursement program. Yawn. Lots of employers, including College Recruiter, do. And the news isn’t even that the program covers 100 percent of the tuition costs. That’s a higher bar than most but, at best, evolutionary and not revolutionary. The news here is that to be eligible you need only have worked at Chipotle for four months (120-days, to be exact) AND work at least 15 hours a week. That’s right. Those working only 15-hours a week will get 100 percent of their college education paid for by Chipotle. That’s revolutionary. Kind of like their one-pound, barbacoa, burritos. But I digress again.

There are some limitations, but they’re VERY reasonable. Only certain degrees qualify, but there are 75 of them and range from high school diplomas to bachelor’s degrees in business or technology. The courses are online, but include VERY well respected schools like Denver University. Not satisfied with their schools? No problem. Chipotle will continue to offer its tuition reimbursement program, which allows eligible employees to be reimbursed for tuition up to $5,250 a year at the school of their choice. That’s not going to come close to covering the full cost of a typical, elite, four-year university, but it could easily cover a third or even a half at many state colleges and perhaps all of the costs of a community college. Or, slap that baby together with a nice scholarship or two and now you’re back into the free zone. Where you can enjoy a pork carnitas taco. With green chili. Mmmm.

College Recruiter, we believe that every student and recent graduate deserves a great career. That guiding principle leads us to push some employers to treat their employees better, sometimes by paying them better, sometimes by creating better working conditions, and sometimes by helping those employees achieve their life goals. With this new program, Chipotle is setting a new bar for other employers and, I hope, many others will follow their lead. Kudos, Chipotle.

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Posted October 11, 2019 by

Why employers should offer 529 college savings and tuition reimbursement plans

The cost of higher education is exponentially higher for the Millennials who recently graduated and Gen Zers who are currently enrolled in one-, two-, and four-year colleges and universities. A Baby Boomer may have paid $10,000 for tuition, room, and board in the 1960s. By the 1980s, the same would have cost a Gen Xer about $50,000. Today, the same will cost a Gen Zer $250,000. A very small percentage of students don’t face that kind of sticker shock as they’re extremely affluent and pay for that out-of-pocket, perhaps with savings, or they’re amongst those with the lowest income but qualify for the largest merit scholarships. For the vast majority of students, financing hundreds of thousands of dollars for their education is the reality. 

It is pretty common for student loans to carry interest rates of 6.25 percent, so about double what home mortgages cost, despite the student loans being of lower risk than home mortgages as you can’t discharge student loan debt through bankruptcy. Also normal is a 20-year repayment period. The cost of a $250,000 loan with an interest rate of 6.25 percent and a length of 20 years results in a monthly payment of $1,827.32, which is about $2,500 before tax. In other words, just to cover your student loans, you need to earn $30,000 a year. Even if your cost of education is half of that, you need to earn about $15,000 a year just to cover your student loans. 

Employers that create 529 education savings and tuition reimbursement plans effectively give their participating employees a substantial raise without it costing the employer anything. Money contributed to a 529 plan is tax-deductible, so if the employee contributes $10,000 a year, they’re going to save about $2,500 a year in taxes. That employee has therefore just effectively been given a $2,500 raise by their employer, without that raise costing the employer anything. Even more dramatic is tuition reimbursement, as that doesn’t cost the employee anything. At College Recruiter, we offer tuition reimbursement of $1,500 per year. If the employee’s tax bracket is 25 percent, that’s worth $2,000 to them. We are, effectively, giving those employees a $2,000 per year raise.

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Posted April 17, 2019 by

Why are your interns and new grad hires so strapped for cash?

The student debt that Millennials and now Gen Z have and are incurring is crippling and, long-term, could financially devastate an entire generation.

Those who went to college in the 1980’s or earlier simply can’t relate as the cost to attend college then could be covered by working part-time as a waiter or bartender and any debt they graduated with could be repaid within a handful of years working at a job that paid well but not even great.
Today’s students are often attending schools which charge $25,000 or more per year plus another $15,000 in related costs such as traveling to and from school each semester, rent, food, and books. A four-year degree, therefore, often costs $160,000.

Part-time jobs typically pay about $10 per hour. At 20-hours a week, that’s $41,600 over four years, so about $120,000 needs to be financed. Student loans often carry interest rates of eight percent or more, so over 20-years the average student is going to see about half of their gross wages disappear to repay the principal plus interest on their student debt.

The end results is that the average graduate of a four-year college or university is effectively being asked to live on about $25,000 per year. If they run into any unexpected, significant expenses like the need to replace a car or have surgery, then there is a very real possibility of them falling into delinquency. Many of the student loans then charge huge penalties, including significantly higher interest rates. So if you miss a payment one or two times, your already exorbitant interest rate of eight can easily escalate to 16 percent and then 24 percent. Before you know it, you’re paying 24 percent interest on a six figure loan that is non-dischargeable in bankruptcy.

If that’s not a recipe for financial disaster, I don’t know what is.

College admissions building. Photo courtesy of Shutterstock.

Posted March 13, 2019 by

How does the admissions cheating scandal impact students deciding on what college to attend?

One of the biggest stories of the week is the alleged college admissions scheme apparently perpetrated by dozens of wealthy and well-connected Americans which, if true, are guilty of defrauding the schools and perhaps the federal government.

According to CNN, actress Lori Loughlin — who starred in the hit sitcom Full House, “surrendered Wednesday morning to federal authorities in Los Angeles, FBI spokeswoman Laura Eimiller said, as fallout from the college admissions scandal continues to spread. Loughlin and her husband, fashion designer Mossimo Giannulli, are accused of paying $500,000 in bribes to designate their two daughters as recruits to the University of Southern California crew team, even though they did not participate in crew, according to court documents released Tuesday.”

“Fifty people — from Hollywood stars and top industry CEOs to college coaches and standardized test administrators — stand accused of participating in a scheme to cheat on admissions tests and admit to students to leading institutions as athletes regardless of their abilities, prosecutors revealed Tuesday in a federal indictment. The scandal is being called the largest college admissions scam ever prosecuted.”

If true, the scam brings to light the dirty, dark, not-so-secret truth that America has never been a meritocracy and has always suffered from crony capitalism, which devalues the hard work and effort expended by the vast majority of the population.

Although Americans have been brought up to believe that if you work hard and play by the rules that you can be anything you want to be, that has only been the case for some and not for most. Until JFK, all presidents were white, male, land-owning, Protestants. Until Barack Obama, all were male, land-owning, Christians. A look at the C-suite of the Fortune 1,000 reveals that the lack of diversity and inclusion is not limited to the White House. In short, meritocracy existed only for a small minority of the population.

Parents and students remain obsessed with getting into the “best” college or university largely for status reasons but also for rational, economic reasons. Somehow, if your kid gets into an elite university, that makes you a better parent in the eyes of some, but that’s truly unfortunate has allowed the banks and higher education industries to redistribute to themselves and their shareholders enormous amounts of wealth from the middle class. 

However, there are good, rational, economic reasons to enroll in and graduate from an elite college: your chances are higher of landing a well-paying job with a well known and respected employer. Most of the best known and respected employers recruit the bulk of their professional, entry-level talent from colleges and universities and for decades they’ve done so largely by sending recruiters and hiring managers to interview on college campuses.

Fortunately, an increasing minority of employers are looking at their outcomes data — which employees are the most productive — and are finding that there is a weak and sometimes negative correlation between the perceived quality of the school and productivity of the employee. That is leading these employees to become school agnostic, meaning that they are being more inclusive in their hiring by reducing or eliminating their on-campus hiring efforts in favor of hiring through job boards such as College Recruiter and other Internet sites. 

Guidance counselor talking to a teenager. Photo courtesy of Shutterstock.

Posted January 09, 2019 by

What colleges don’t want high school students and parents to consider during the application process

A friend of mine recently posted to Facebook that the guidance counselor at the high school her kids attend recently indicated that “most” colleges require at least three years of a second language in order to consider the student for possible admission. I called b.s. on that statement and then outlined some additional information that high school guidance counselors and college admissions representatives often either don’t know or, for whatever reason, often fail to communicate:

I know you and I are on the same page, but the guidance counselor is providing terrible guidance and needs to be more careful about accurately guiding her students. 

There are 8 Ivy League schools. There are 3,000, four-year colleges. There are another 4,300 one- and two-year colleges. 

Ivys represent 0.267 percent of four-year colleges. Hardly representative.

More important words of advice: Talk openly and honestly with your kids about the financial impact of college. 

Here is the reality: if a family is wealthy and can pay out of pocket — including savings — then the cost isn’t as important.  (more…)

Posted September 05, 2018 by

Furthering your education might be more possible with your employer’s help

 

Some employers offer tuition reimbursement or even scholarships that help their employees pay for school. For all the students who work part-time to help pay their tuition, this kind of additional assistance can be the difference between staying in school or dropping out. And for employees who are intimidated by the decision to balance work with school, it could help to ask your employer what kind of support they offer that would allow you to further your education. We connected with Jason Bilotti, Owner-Operator of West Paces Ferry Chick-fil-A in Atlanta. Chick-fil-A awards scholarships to thousands of employees, this year totaling $14.5 million, to help them further their education. Bilotti shares here about why he thinks it’s so important for employees at the retail level to further their education.

(more…)

Posted February 08, 2018 by

Strategies to address the tech skills gap and plan your future workforce

 

We wanted to know how employers are addressing the tech skills gap and learning to prepare their future workforce pipeline. We met with Parvathi Sivaraman and Maan Hamdan from Education Unbound, which was formed to build up STEAM in education. By supporting education, they also help reduce the expected tech skills gap and mitigate some of the negative impact automation will have on many traditional jobs. (more…)