More than a third of graduates with student loans say they have not received their money, a new study reveals
- 36% of college student graduates say the debt was not worth the amount earned, according to a new study by Merrill Lynch
- On average, young adults in America graduate with $ 36,888 in student debt
- People aged 18-35 spend an average of 9% of their salary on student loan loans
- 43.3% of young American families have student loans, federal data
- As a result, young Americans are slowing down buying houses and having children
According to a new survey, 36 percent of college student graduates say that the debt was not worth the amount earned.
On average, young adults graduate with $ 36,888 in student debt – and it becomes a burden that many wonder if their education is worth it, according to the survey of more than 2,700 American adults aged 18-34 by Merrill Lynch and Age Wave.
The study also found that those young adults allocate an average of 9 percent of their pre-tax salary for student loan repayments – an average of $ 371 per month for 10 years.
The problem is far-reaching: according to the US Federal Reserve, nearly half (43.3 percent) of young American families have student loans.
The higher a person earns, the higher his life gain. Source: Georgetown University Center on Education and the Workforce
The total US student loan debt of around 44 million Americans is now more than $ 1.5 trillion, according to the Federal Reserve Board of Directors.
& # 39; Higher education should be the equalizer & # 39 ;, Maggie Thompson, executive director of Generation Progress, told DailyMail.com.
& # 39; If we live in an economy where you need higher education to move forward … We must go back to a model where people have the ability to achieve a high level of quality without the debt & # 39; , she added.
The problem is having & # 39; great wrinkle effects & # 39; on the future of young adults, the survey shows.
For example, an estimated 400,000 young adults who bought a house ten years ago were unable to afford this because of their student loan burden.
Increasingly, Americans are turning off having children – citing student loan debt as an important reason.
& # 39; The wrinkle even reaches the retirement years – graduated graduates contribute only about half the amount to their 401 (k) s compared to those without debts, & quot; Merrill Lynch report.
A separate report from the Washington, D.C., urban institute concluded that 40 percent of student loan borrowers could pay off their debt in 2023 – and 250,000 silver-plated federal student loans every quarter.
Borrowers with the smallest amounts of student debt were most likely to default, with 32 percent of those with a balance of $ 5,000 or less that defaulted at least once within four years. This is often because they left school before they graduated.
College graduates had much lower unemployment rates than those with only a high school diploma during the peak of the Great Recession in 2010. Source: The Association of Public and Land-grant Universities
& # 39; Education is generally a big investment, one of the things that student loans help people do is invest in themselves and put money into an education so that it pays in the future, & # 39; said Kristin Blagg, a researcher at the Municipal Institute. & # 39; However, for some people this investment does not work – especially if they do not end up in the direction they were working toward. & # 39;
The problem is exacerbated by a job market with low unemployment rates, but many people who work in poorly paid jobs.
In addition, the 18-35-year-old set is usually looking for work that can meet their financial needs and at the same time give meaning to their lives – and 80 percent find it a challenge to find such opportunities.
Less than half (44 percent) of young adults feel that they have career opportunities in their current job, while 41 percent say they have fair compensation and only 35 percent think their work is in line with their passions and interests.
All that dissatisfaction comes down to a job search – nearly half (46 percent) of working young Americans plan to look for a new job in the next 12 months.