The majority of new graduates are struggling to secure careers,
as the unemployment rate among them is the highest ever recorded
at 9.1 percent. It is a fact that could not come at a worse
time, considering that they are also facing more student loan
debt than any class before them.
According to a new study by the Project on Student Debt, 2/3
of students who graduated in 2010 are facing steep student
loan debt. The average amount that new grads owe is $25,250
which is up 5 percent compared to the class of 2009. The
report partly blames the fact that the economic downturn
happened when students from the class of 2010 were enrolled
in school, forcingg them to endure a spike in tuition costs,
leading them to borrow more.
Surprisingly, graduates from private colleges had relatively
low debt. Researchers say it could be because private
colleges offer significant financial aid from endowments
and fundraising. It could also be because there is a
smaller percentage of students with low to moderate incomes
enrolled in private schools.
The study was released just a few days after President Obama
announced a new plan for helping graduates ease the burden
of student loan repayments. The initiative includes
cutting monthly payments, bundling loans and a lower interest
rate for some eligible students. Stay tuned for more
information as it becomes available.
Sheila McKinney
