College is believed to be the next step after high school; it is alleged to be where you become a well rounded individual and educated to get out in the real world to make money and afford the life that you wish of. This is not so much the case when the economy has gone sour. I just witnessed personally a college graduation; I graduated with my B.B.A. on Saturday. Looking at the future is scary, and not having a job is worse. I will be taking classes throughout the summer, but August will be here in no time and I will be expected to have something lined up so I can start paying my $30,000 in student loans. Luckily, I have been fortunate enough to be able to make it through college with simply student loan debt and not credit card debt. A current report has indicated that many students are graduating college with around $7,000 in credit card debt and much more debt in student loans. So of course the rate of default on student loans has increased in the past year. The entire situation of hundreds of thousands of people graduating is exacerbated by being without a job and employers being far more particular about whom they hire. After looking for jobs in marketing, I have realized that if you do not have at least 3 years of knowledge in the field, you are unlikely to find something right out of college at a marketing firm (unless you graduated with highest honors it seems). There is some optimism though; in July a new federal program will go into effect that allows graduates to cap his or her monthly loan payment to 15% of his or her income. While the program was fashioned to give some relief to those who go into lower paying industries like teaching, it will help out everyone. Another benefit to this program is that in some sectors, public service loan forgiveness will go into effect after 10 years of payments; all graduates loans will be forgiven after 25 years of payment. I can not envisage still paying back loans after 25 years. I am for my part hoping to have my loans paid off in 10 if all goes well. I would love to have them paid off sooner, but I have to make sure that the bills are paid initially. I think this is where the dilemma is coming from when students graduate. Like me, they live with their significant other or spouse, or are on their own and have to make sure that they have a place to live rather than lose sleep about student loan payments. However, it looks like this federal program will be supportive to graduates that will have a tricky time paying back their student loans because of additional financial obligations.
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College is believed to be the next step after high school; it is supposed to be where you become a well rounded individual and educated to get out in the real world to bring in money and pay for the life that you fantasy of.
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