529 college savings accounts (like Edvest or Tomorrow’s Scholar) can now be used for apprenticeship

By U.S. Congressman Glenn Grothman

While we are currently experiencing a brief economic speedbump, I am hopeful that by this time next year, our economy will again be strong, and weu2019ll be facing the challenge of finding the qualified skilled laborers necessary for construction, manufacturing and health care.

We tell our kids to stay in school, study hard, then they will be able to go to college. For many years, it has been widely accepted that u201ccollegeu201d means going to a liberal arts school and earning a four-year degree, but is this the best option for all students? Though earning a traditional four-year degree is an outstanding achievement and has many benefits, we often push students into thinking that this is the height of achievement when, in fact, many of them would be happier, earn more money and accrue less debt by learning a construction trade.

As I travel around Wisconsin, I hear this story too often, u201cI graduated high school at 18, got a bacheloru2019s degree at 22 and worked in that field for five years. I did not like what I was doing, was not making a lot of money and could only make minimum payments on my student loan debt. So, I quit my job, went back to school to learn a skill and now use the skill in my new job, where I am happier and making more money than I did before. I am now 35 and finally starting to make a dent in the student loan debt from my bacheloru2019s degree.u201d

I am glad that these individuals have found a job they love with a salary that allows them to truly live. But they could have started their journey to being debt-free, owning a house and starting a family when they were 22 instead of 35 if they had known about technical college, apprenticeships and all the career and technical education options available. Instead, students are too often told that traditional four-year degrees are the turnkey to a great life.

Young adults should start choosing higher education paths that best suit their needs, while incurring the least amount of student debt and learning skills that are always in demand. There is a bias in our society that a traditional four-year degree is the best option for every student. In reality, many of them would be happier, and often make more money, if they had pursued a construction trade after high school. I often speak with employers who tell me that they are in desperate need of skilled employees but cannot find anyone with the necessary skill sets. These are important jobs and we need to be encouraging students to consider going to technical school and completing apprenticeships to obtain them.

We need to let our children know just how in-demand skilled jobs are and how much money they can make. Over the past several years, companies ranging from small businesses to large multinational corporations have experienced a significant skilled labor shortage. By encouraging students to pursue a hands-on skill, we are increasing opportunities for Wisconsinites to join the skilled labor force and acquire the local high-demand, high-paying jobs that employers are eager to fill.

Other areas in the country do not look like Wisconsin. Not only are the people and the climate different, but they have different industries. We have far more factories, heavy machinery and manufacturing jobs than most parts of the country. In fact, Wisconsin ranks second in total percentage of manufacturing jobs. This means that, while you and I know that the skilled labor gap exists and is a growing problem, people from different states, including their Congressional representatives u2014 my colleagues u2014 do not have a grasp on just how serious a problem this shortage of workers is.

Apprenticeships offer a way for those seeking to enter the high-demand skilled labor market to get invaluable on-the-job experience. The U.S. Department of Labor has reported that 94% of individuals that complete apprenticeship programs not only find jobs, but make an average starting salary of $70,000, much higher than most four-year college graduates. And the bonus is that they are earning their certification without a mountain of student loan debt.

I believe we are rapidly making progress in the fight to prepare students to fill these skilled jobs. As part of a larger appropriations bill in December 2019, Congress included provisions that will allow individuals with 529 college savings accounts to use the money they have saved for apprenticeship programs.