College Graduates in Danger of Not Getting Jobs Because of Student Debt

If you recently graduated from college, you more likely have a student debt of at least $25,000 and looking for a job. Those without a degree are instantly disqualified from the American job market. On the other hand, for those who have a degree, your hopes might be futile.

Ever since 2010, student loan debt has exceeded credit card loan debt and auto loan debt.

San Francisco State University students, who have federal student loans, have an average debt of $18,000. SFSU approximates its default rate to be over 5 percent for the next year. This default rate is lower than 8.8 percent which is the national average.

Failure in paying debts damages credit value, and job applicants with bankruptcy records are avoided by a few employers. Moreover, poor credit hinders a person to be able to get loans that can help put up a business or get loans for a car or house.

However, the sad truth is that federal student loans can be paid only after graduation and normally takes 20 years. This is why a few students stop pursuing their dreams because of the prospect that the unemployment rate for college graduates of this year will be 50 percent.

The country’s three richest people would have to give 4.5 percent of their respective incomes to maintain federal loan rates at their current point for all students. According to a recent study, 35 percent of the college expenses are paid by families. Thus, while higher education fees increase, household income decreases.

In addition, another problem is the country must have an education system that is appropriate with the economy and public welfare needs.

These issues must be solved as soon as possible because if not, the next generations of graduates will only end up overwhelmed with misery. There must be an improved educational system that is within the means of all income groups.

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