More students graduating with large debt and no job
10/25/2010
By Credit.com Staff
The economic downturn has taken a harsh toll on college students, who are graduating with larger student loan balances than previous classes. A new study conducted by Project on Student Debt shows recent graduates in 2009 came out of school with an average of $24,000 in loans, an increase of 6 percent since 2008.
Additionally, the unemployment rate for recent graduates grew between 2008 and 2009, increasing from 5.8 to 8.7 percent. According to the study, the unemployment rate was the highest ever recorded for students between ages 20 and 24.
"With student debt rising and jobs hard to come by, it’s more important than ever to shop around when deciding where to go to college," Institute for College Access & Success president Lauren Asher said. "Differences in the kind of debt students graduate with matter, too. Income-Based Repayment and other programs can help you manage your federal student loan debt, but if you have private student loans, you're really at the mercy of your lender."
Although the government has developed more advantageous loan repayment plans, the cost of tuition continues to rise as many universities have seen their endowments decline, forcing them to slash scholarships and grants.
