College Job Crisis result of student debt
Student debt has plagued college graduates for a ton of money that the government may never see. “Seven in 10 seniors who graduated from public and nonprofit colleges in 2013 had student loan debt, with an average of $28,400 per borrower. This represents a two percent increase from the average debt of 2012 public and nonprofit graduates,” according to one source. One of the problems with student debt is the lack of jobs available after graduation. Students who invest years and thousands of dollars are unable to find jobs. The problem is not their qualifications. There simply aren’t many high-paying jobs. A supply and demand issue is all. In recent news,aA Wall Street Journal article titled “From the At Work Blog: Survey finds many companies plan a hiring boost in 2015” says employers are looking to hire more graduates. This is good news given the high amount of US debt college students owe. According to the article, “Employers plan to hire 9.6% more new graduates than they did last year, according to a survey of 162 U.S. employers released Wednesday by the National Association of Colleges and Employers. Some 56% of employers plan to increase hiring, while 12% plan to have hiring remain constant, and 32% plan to decrease hires, the survey said. Employers said they posted an average of 148 openings, up nearly 50% from last year. In turn, the job market is no longer quite as tight for job seekers. Employers received an average of 23 applications per posting, down from 28 responses per posting last year, according to the survey.”
For young college graduates, the unemployment rate is currently 8.5 percent (compared with 5.5 percent in 2007), and the underemployment rate is 16.8 percent (compared with 9.6 percent in 2007),” states the following article. College debt is now over $1,000,000,000,000, and the economy has felt the impact of college students who are unable to financially support themselves without jobs that can cover the costs of tuition. When you have college students that are working minimum wage salaries, the entire point of college no longer exists. Students who take the opportunity cost of going to college to earn a degree are losing the money they would make working straight out of high school. Now, not only do they not have the money they would have made working, they also have to pay tuition that could have easily matched a steady income over several years. College students are said to earn roughly $18,000 more each year than students with no degree. With out of state college costs here at U of M, for example, some $40,000 a year, that’s roughly $160,000 a student could have saved. Not to mention the salaries they would have earned over the years they would have been attending lectures. This new increase in employers’ hiring plans is some good news for college students, although it won’t solve the college debt that America faces today. Actually, it won’t really do anything. The amount of college graduates is still going to outweigh the amount of new jobs available. College debt is still going to grow despite the new job openings. America is going to have face the music eventually, and employers as well as the government are going to have to find a way to allow students to pay their debts.