You feel fortunate. You belong to the 29% of graduating students who will leave college debt-free and therefore may believe today’s amount of student loans and record debt are issues that do not impact you. This is simply not the case. Consider the following environment that exists for over 70 percent of your classmates or said differently your competition for limited post college jobs:
- 71% of today’s college students will graduate with a loan
- The average debt per student in 2016 is $35,000 (the largest amount per student in history and a $6,000 increase from the previous year)
- Since 2009 the total amount of student loans owed has doubled to a record $1.4 trillion
- $30,000 in student debt can cut as much as $325,000 from a 401(k) balance by the time someone is ready to retire as discretionary income is allocated to debt payment rather than savings
You have no debt so why should this be your concern. Simple: never before have the majority of your classmates been so driven to begin meaningful work immediately after graduating as a means to repay debt. Today’s record loans have resulted in a fiercely competitive environment of grads vying for limited opportunities. As stated in previous postings all students need to have a well thought out employment strategy beginning early their junior year with clear milestones and objectives. Student loans and record debt impact everyone as the majority of your competition has never been more motivated to find the right job. Can you say the same…..