Budgets, featured, Money, personal finance

College Debt & You

Pretty sure you’re one of the many American college graduates who got a big wake up call following your memorable graduation. While in celebratory state of mind, no one ever warned you of the immense debt you’ve been accumulating during those “free” years of studies. While you were busy changing your major and signing promissory notes, you never once stopped and thought about the debt you were accumulating to later be repaid.

Well, now you’ve graduated, and the job search is not going so well. You’ve begun receiving those repayment notices and your mind is blown away. Why didn’t any staff members at the college warn you of the gap between graduation day and your first job? How could these professional allow your young, naive self to get manipulated into signing all that debt against your “potential” income?

Well, breathe, because you’re not alone. According to the US Loan Debt Statistics College Graduates Percentage, in 2018 the college debt increased by 6%, making on average, any college graduate to have an estimated $40k in student loan. Yes, that is correct. Prior to obtaining your first decent position following your graduation, you’ve accumulated debt which will probably not equate to your first year’s income.

You might feel overwhelmed, discouraged, or even a bit depressed about these facts. But, rest assure, your debt accumulation was not in vain. Imagine the amount of information you’ve learned over the past six years. You now have the skills, knowledge, and tools necessary to go into society and help others. No matter your degree attained or career moves, you have the key ingredient to what society is missing. What’s that? Well, knowledge.

Prior to this generation’s college debt accumulation, the system seemed to have been working and working well. You will find that since the year 2000, college graduates have steadily been on the rise. In fact, from 2000 through 2018, College Graduate Percentage for female college graduates  have increased by 11%, while male college graduates increased by 6%. So, with all these newly earned degrees, you might be wondering why the media is stating that there aren’t enough “qualified” employees to fill the many positions available.

Well, that’s simple. On average, most college graduates have the degree, knowledge, and debt to boot; however, these same graduates lack the actual experience necessary for the positions they desire. But how could that be, you may be wondering. Imagine the many hours it takes to study, pass, and acquire a degree. Now these same hours, could have (if time permitted) been used on acquiring actual career experiences. However, since Superman is a fictional character and you’re only human, such goals could not be accomplished. As a result, the employment industry is filled with overqualified candidates that lack experience. But, how do you repay a debt if you lack income? Well, the answer is simple, you don’t.

It is impossible to repay the high college debt that this country places on college graduates, if companies are unwilling to hire or train these individuals (i.e. You). As a result, there is an imbalanced system of open positions and “unqualified” candidates. How do we rectify this issue you ask? Well, first we must have in-school training (more internships) for the many college students that are out there. Second, companies that do not offer internships must be willing to take a chance on newly graduates. Third, these same companies must be willing to pay such graduates based on their attained degrees (though they may lack experience).

On-the-job experience is something that can always be earned, however, the priceless asset that you own is that college degree. Your college degree represents countless hours of lost sleep, studying, and dedication. So, I may not have all the answers to resolving your college debt, but please keep in mind that you are not alone. For the millions of students entering the college world, and the millions leaving it to enter corporate America; be advised, college debt is real and can cost you more then monetary loss. College debt can cost you peace of mind and sanity. But, always remember, when obtaining a new position, always include your college debt when negotiating new salaries.

I hope this message reached you in peace and understanding. And be happy, you’re one of the few people actually making a positive change to the American statistical game. You actually set out a goal and accomplished it. Now to get those interviews…..



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