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Jobless Recent College Grads Worry About Their Loans
The Indianapolis Star via Yellowbrix
September 30, 2009
The clock is ticking for Alisha Hull. She’s been looking furiously for a job since she graduated from Ball State University in May with a degree in microbiology.
But with the economy sagging and no real prospects in sight, the honors graduate soon will have to make that first payment on her $55,000 in student loans — or ask her lenders for a delay.
Hull, 23, is one of 1.4 million people who graduated from U.S. colleges in May. More than half of them are being dumped into a bad economy loaded down with debt — a total obligation estimated at $32.5 billion. It’s the largest debt ever recorded for a nation of college graduates, and some economists and student advocates say it could hamper not only the buying power of young families struggling to set up households but also an economy struggling to shake off a recession.
“There are serious effects this will have on the economy,” said Edie Irons, with the Project on Student Debt, an initiative that aims to make college more affordable. “When people are paying hundreds of dollars a month not just 10 but 20 and 30 years after school? They are less likely to buy a house, save for retirement, start a business. It’s a real burden to the economy.”
With default rates on student loans rising, colleges are under pressure to keep costs down, and policymakers are seeking changes they hope will prevent the best and brightest of a generation known as “millennials” or “echo boomers” from also being tagged “debtors.”
For now, Hull and countless others are preparing for a payment deadline in November.
“I get more and more nervous the closer it gets,” said Hull, who has moved back home with her dad in Greenfield. “I was hoping I would have had a job by now.”
She is determined to find a way to start paying on her loans — even if she has to take a job in food service rather than in a research lab where she could put her college education to work.
AlexD343
18 days ago
Am amalawian by nationality who needed to go to tertiary school so that there could be adevelopment in my community since my community has been occupied by not professional so please help me. Your regards Alex
VagrantRiot
26 days ago
I know a lot of students are in this boat, but what about their parents who also took out loans to help out their children through college? Will anything ever be done for the hundreds, maybe even thousands, of parents who are now struggling because they want their child to have a better education or future than they did? I'm sorry, but not every student is completely alone in the loans they have, and not every parent has the money to send their kids to school. I'm grateful that my parents have helped me, but I also know that it's been a huge strain on my family. And yeah, you could say that they knew this would happen, but did anyone really know that the economy was going to bottom out like this? And why should intelligent kids be denied an education because they can't afford it? The whole higher education system is messed up and needs to be redone. It's ridiculous. Education is, and always has been, for the rich.
CliffM19
about 1 month ago
I heard/read someone propose forgiveness of student loans as a economic stimulus, but that quickly became silent. Every four years I hear election campaign claims promise change and ....nada! Fast Web and other private institutions have done some good; scholarship approval will determine whether I will finish my BA in Education (math). I refuse to go further than the 20G I now owe and am frustrated I allowed myself to go in debt, suspicious of the claims of need in the field, and disappointed in the lack of support I have experienced in this endeavor. I must conclude encouragement to continue education may be motivated by another's economic well being and, of course, this may have a detrimental effect on the legitimate need to increase education in America. I certainly regret my decision to burden myself with debt.
salutmel02
about 1 month ago
I understand all of you. I graduated December 2008 with a bachelors and by May still hadn't found anything, so I went back for my masters in hopes of things turning around by the time I was done. My program is only a year long so I am half way done and there is still no sign of a change and still no job and it has been 10 months. It is pretty sad when we are told to further our education and then it does nothing for us. Every job I see just requires a high school degree, what was the point in all of this schooling and debt if no one cares about it. Good luck to everyone!
ApacheB
about 1 month ago
more proof that our society is a scam
KorieD
about 1 month ago
I am in the same freakin boat right now, I cant find a job to save my life!! I might as well just go back to school until we get out of the freakin recession, at least I had some pell grant extra money to help out when I was totally broke, now i have to call DAD! and that is embarassing!
JalpaP2
about 1 month ago
WPA?
stephw2006
about 1 month ago
This whole article is exactly what I've been afraid of since I graduated in June. Living in a smaller town in Ohio, not only are there no jobs in my field, there are no jobs period. With my first payment being due in January, I'm starting to get nervous. It helps to know that I'm not alone in this mess.
Chocoagogo
about 1 month ago
This is a serious flaw with out education system - too many bright, young students are having their talent wasted because we can't find suitable jobs, and are forced to apply for anything just to pay the bills and make ends meet. The future look grim when you'll be spending the next 10+ years paying off loans because you wanted higher education.
AubreeM7
about 1 month ago
I'm in the same boat. This whole thing is driving me mad!
MairimL22
about 1 month ago
I know how that feels! I graduated with an architecture degree, but I can't find a job in that industry, so I'm applying for whatever I find, from office & clerical jobs to manufacturing. *Sigh. My first payment is going to be in December and I'm freaking out!!
ChrisCJ99
about 1 month ago
This is EXACTLY what freaks me out...... I'm making a HUGE investment for a second bachelors in Web/Media design and I'm afraid I won't find a job! Even worse, afraid to be making payments for 30 years!
SobeydaG
about 1 month ago
wow, I'm in the same situation down here in Houston, TX. This is ridiculous!