Financial guru Dave Ramsey is one of the latest people to question the value of getting deep into debt for an Ivy League degree. He shared in a recent X video that the college you went to doesn't play a role in building wealth.
"Where you go to school does not matter," Ramsey said in the video.
State Schools Have Produced Many Successful Entrepreneurs
State schools are often more affordable than private universities, and state students may live close enough to home that they don't have to live in a dorm, resulting in even more savings. However, the extra savings of a state university aren't the only benefit of these institutions.
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"Seventy-eight percent of the publicly traded company CEOs went to a state school," Ramsey said in the video.
He then specifically called out MIT, Harvard, Yale, and Vanderbilt as prestigious universities that weren't a part of the 78% metric. Going to a state college won't guarantee that you have a successful career, but it goes to show that a prestigious college isn't a golden ticket, and a state college doesn’t automatically put you at a disadvantage.
"I went to the University of Tennessee," Ramsey said. "People who went to Vanderbilt work for me."
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What You Do Out Of College Matters More Than What You Do In It
Ramsey's message may ring hollow to people who made it into Ivy League colleges and incurred significant debt, and it may give state university students more to feel good about. However, some Ivy Leaguers become quite successful, while some state university students struggle to find jobs right out of college.
A college degree is one factor that employers will consider when reviewing your application, and it gets less valuable as you get older. No one asks Ramsey what college he went to before inviting him to speak at an event or deciding to listen to his show.
"There is no data, zero pieces of research, that say where you went to school causes you to be successful," Ramsey said.
Skills like networking, outworking the competition, and having a desire to learn new things after college can help you stand out in the marketplace. Developing skills and making new connections after graduating from college can play a key role in your career development.
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Maximize Your College Savings
Ramsey's advice is particularly useful for students who are currently deciding which college they want to attend. It's a big decision that also comes with a substantial price tag. Ramsey's observations about the name of your college not playing a role in your success imply that the cheapest college may be ideal.
Attending community college for two years and going to a state university makes it easier to get out of debt sooner and possibly pay off your tuition while attending college. That scenario is almost impossible if a student is enrolled in a private university and paying more than $50,000 per year between tuition and housing.
Applying for scholarships can also keep costs low, especially if you apply for several scholarship opportunities each day. Saving as much money as you can during your college journey can give you a better head start with your finances.
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