2011 College Graduates Will Be the Most Indebted Class in History
The years of late-night studying, cramming for quizzes and spending hours in the library pay off when college students are earn enough credits to obtain a degree. But after the celebrations with family and friends, most of the members of the 2011 graduating class will be faced with a hard dose of reality.
According to a study done by the National Center for Education, the average student will face a debt of $22,900. Due to a 5 percent tuition hike and the economic downturn, many students can’t depend on their parents for support and they are forced to apply for loans.
In turn, some loan companies are taking advantage of students by offering interest rates that are as high as subprime mortgages. And because many companies have put a freeze on hiring, thousands of graduates are being forced to take low paying jobs outside of their majors. And those who are fortunate enough to land a job are being offered less money than their predecessors. According to the College Employment Research Institute, 2011 graduates with bachelor degrees will earn an average salary of $36,866 while 2009 graduates earned $46,500.
Although the present outlook for recent graduates seems bleak, most college degrees pay off in the long run. A degree can also increase your chances of staying employed.
The unemployment rate for college graduates is 4.5 percent while it stands at 9.7 percent for those with high school diplomas and 14.6 percent for individuals who never finished high school. –amir shaw