The Burden of Debt after CollegeJanuary 26th, 2011
Earning your degree can be so expensive that it is nearly impossible to attend school without the help of financial assistance. Faced with the costs of textbooks, living expenses, tuition fees, food and basic living necessities, the cost of financing a college education can seem like a monster threatening to gobble you up. And while students understand the importance of attaining a college degree, especially because of the financial dividends they offer, some students rack up all the loans that they can possibly attain, but forget about the fact that they will eventually have to be payed back.
Upon graduation, students are often shocked by the incredible amount of debt staring back at them, which they must now accumulate in order to clear their good financial names. The seemingly insurmountable task of paying off their graduation debt can be a sobering reality that dwindles the paychecks they’re receiving- that is- if they’re lucky enough to have landed a job right out of school.
According to the New York Times, the average college debt rose to $24,000 in 2009. This figure refers to the amount that the average student took out in loans during their collegiate career. When combined, the crippling average debt of a college graduate, the poor state of the economy, and the unemployment rate are leading to a great deal of struggles from the newly graduated crowd.
In fact, CNNMoney.com recently reported that 85% of college graduates now move back home after graduation (the article labels these graduates “boomerang kids”). With few jobs available for recent grads, many of them are finding that moving back home is their only real option, even though it simultaneously stresses their parents, who forced to accept that their homes have become “a revolving door” for their now-grownup children.
However, there are glimmers of hope on the horizon as well. According to a recent study conducted by the National Association of Colleges and Employers, employers expect to hire 13.5% more new grads from the Class of 2011 than they hired from the Class of 2010. As employment rates rise, the rates of the average college debt after graduation just might see a decline, and some of those boomerang kids may be able to remain independent.