The job market for college grads is extremely competitive, so much so that many graduates do not get a job in their field. Gail MarksJarvis’ article in the Chicago Tribune goes into detail about what can be expected for recent and future college graduates.  According to research by the Pew Research Center, a third of Americans between 25 and 29 have college degrees and the hope of a better future is pulling in students from every demographic. “College completion is now at record levels for men and women, blacks, whites and Hispanics and foreign-born and native-born Americans,” Pew researchers Richard Fry and Kim Parker said in a recent study.

This increase in people obtaining a higher education would be extremely beneficial to society as a whole, but it is causing many students to move back into their parents’ house with their degree in hand and begin hunting for a job that requires absolutely no education.  In fact, according to MarksJarvis’ article, “Government data suggest that about half of the students who have finished college lately are either unemployed or underemployed — working in restaurants, stores or other jobs that don’t use their education. With more than $26,600 in student loans held on average by those who borrowed for college, a low-level job after college is a harsh reality.”

So why are these bright, college graduates not getting jobs related to their field? A large reason is due to the competition of other college graduates, but perhaps an even bigger factor is the economy itself. Gone are the days when a kid can get a great job straight out of high school or college, which says nothing of the student’s ability.  Despite the fact that the economy is in shambles, the push for college education has increased drastically. “In 1978, Pew found Americans were widely divided over whether a college education was necessary to get ahead in life. Yet, in 2009, 73 percent of American adults said college was a necessity. A Gallup Poll in 2010 found similar results — 75 percent thought college was necessary.”

While society believes college is necessary, the harsh reality shows that a college degree is not the golden ticket to success as it once was.  A college degree may be beneficial to some, but others will never actually use their degree in their field of choice because of the broken economy and the fact that they must take any job to start paying back their thousands of dollars in student loans.

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Jacksonville, U.S.A. — Rising tuition costs and excessive borrowing have left many recent graduates struggling to afford the basic living necessities, according to findings from Accounting Principals’ latest Workonomix survey. Although Congress took decisive action to stop student loan interest rates from rising, many recent grads are still grappling with high debt upon graduation.

According to Accounting Principals’ survey a majority (68 percent) of recent graduates are leaving school with an average of nearly $40,000 of debt. Most of this debt has been accrued through student loans ($27,029); however, recent graduates also leaned heavily on other debt – like credit cards – to get them through college, amassing an average of $12,742 of non-student loan debt upon graduating.

Interestingly, debt statistics also seem to cut across gender lines; survey results indicated that male graduates accrued more debt on average than their female counterparts. The survey found that male graduates owed 28 percent more in student loans than female graduates ($30,508 vs. $23,892, respectively). Male grads also tapped more heavily into their credit cards during college, accruing twice as much credit card debt than female graduates ($17,858 vs. $8,574).

Regardless of who borrowed the most in college, recent graduates are finding it difficult to stay financially afloat after graduating. The survey found that 42 percent of recent graduates thought they would have more disposable income once they graduated. However, the reality of being a recent grad has proven to be more challenging – 83 percent of those surveyed cannot afford all of the basic living necessities including groceries, rent, cell phone, car, and student loan repayments.

“The most surprising finding in our Workonomix survey was the massive amount of debt these graduates had to take on to pursue a higher education,” said Jodi Chavez, senior vice president of Accounting Principals. “Entering the job market as a recent graduate is always stressful, but leaving school with this amount of debt puts added pressure on the newly employed.”

According to the survey, recent graduates would have been more proactive about their finances during college had they known more about the cost of living. Approximately one-third of recent grads would have pursued more scholarships or financial aid options (35 percent), pursued a major that would have led to a higher paying job (31 percent), or gotten a job while in college and started saving earlier (31 percent).

However, despite their regrets graduates are being proactive about their finances– and would like to be able to turn to their employers for help. More than two-thirds (68 percent) of those surveyed said their employer does not provide financial education courses, but nearly half (48 percent) would participate in them if offered.

“Employers are in a unique position to help entry level workers navigate the challenges of being a recent graduate. They can offer inexpensive lunch-and-learn sessions that provide an overview of the basics of personal finance,” said Chavez. “As a recent grad looking for employment, contact a recruiter who is willing to put in the time to coach you on your interviewing skills, help you improve your resume, and connect you with the right opportunities that will allow you to focus on the future and not the financial burden of your past.”

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The Council for Responsible College Financing presents Jay Cameron’s stage play, College Fever LIVE! “College Fever! What’s The Real Price of College?” returns April 29, 2012. The play explores the hot topic of college financing in an entertaining theatrical production which includes an incredible light show, live music, poetry, singing and dance.

“College Fever!” was created to bring awareness to the student loan and credit card debt crisis millions of college students are battling. This production offers steps to avoiding and overcoming student debt while illustrating the struggle many families face when confronted with financing college.

Millions of unsuspecting American families fall for the college financing trap that awaits those who want to further their education. According to FinAid.org, as of 2008, “more than $100 billion in federal education loans and $10 billion in private student loans are originated each year.” In 2012, student loan debt has surpassed one trillion dollars in the U.S.

What can conscientious students do? A college education is thought to be required to obtain a better job, but college costs are too expensive for most. Student loan debt seems to be the only way to pay for college and the job market continues to remain inconsistent. And since student loan debt is not subject to bankruptcy, the result of a default can be catastrophic to borrowers, their families and the health of the U.S. economy.

Woven together in an unforgettable yet familiar story, “College Fever!” offers solutions for the student debt crisis in this thought provoking stage-play. As a follow up to “College Fever” Debt Free College Degree – The Seminar digs even deeper to offer a systematic approach to paying for college, debt free. Both events educate and entertain.

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For students throughout the entire world, the student loan holds short term joy alongside long term anxiety. The loans themselves are the main form of direct government support for students in higher education in the UK. Money is loaned to students at a subsidized rate that helps contribute towards maintenance costs as well as tuition fees.

The whole notion is seen to financially support as much as possible, trying not to deter potential students who may be put off by the economic restraints associated with university.

The current system in place however does have its critics, with the maintenance loan often becoming an issue with a large number of students whose parents earn more than the average amount.

Many view university, or higher education as the perfect platform to mature, both academically and personally. This learning curve includes financial dependency for the majority of students, who are encouraged to use their loans wisely in what is fast becoming an economically strained society.

The value of the maintenance loan has severely increased over the last twenty years, with the average annual sum standing at £390 per student in 1990/91, when only 28% of eligible students accepted their loans. 1995/96 saw an increase to £1,250, whilst the turn of the millennium saw an even larger increase, with the annual average reaching £2,900. This academic year has seen the highest average at £3,700 per year, or just over £1,200 per term.

The whole idea behind a maintenance loan is to cover accommodation fees and imperative living essentials. However following on from last weeks article which focused on the party culture in the UK, this modern society we live in is failing to grasp what is viewed by many as one of universities, if not life’s fundamental learning stations.

More and more parents are naively agreeing to pay their children’s accommodation fees, which in turn leaves the said student in possession of the entire maintenance loan to spend how they wish. With a figure of over £3,000 million a year spent on student loans throughout the United Kingdom, it is obvious that in many cases this can amount to a lot of money.

Even though many parents feel they are providing beneficial financial support to their children, in many cases, individuals are left with over £1,000 a term, to spend how they wish. With a term being no more than a few months long, students who have this luxury are able to live fairly comfortably, a standard or living not associated with student life.

The excessive amounts of money available to students despite the stereotypical beliefs surrounding modern students is astonishing, which leads onto last week’s article that highlighted the party culture, excessive drinking and illegal drug taking that has become accustomed at many universities throughout the United Kingdom.

The stereotypical views associated with students, in these particular cases, are down to their own doing, and lack of financial responsibility. To be presented with such a large sum of money at the start of term and then to reach the final week’s and be well into your overdraft is an unnecessary deterrent that is easily avoidable.

Although it’s often said that years spent at University are the best of your life, this current party culture seems to take this term too literally which in turn is seen to jeopardize their academic studies and financial stability.

Although this financial ‘blessing’ doesn’t lend itself to every student in the UK, those who may be considered unfortunate in the short term will definitely benefit from their style of living, as they work hard to make the money they need to survive, developing good values and even better morals.

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Despite the economic recession, it is not all that difficult to get a loan when times are tough. The hard part is being able to pay back those loans, in full, and in a certain time frame. And among those struggling the most are recent college graduates who can’t find jobs. In fact, so many things have to go right for things to be uncomplicated for a college graduate since the recession. Without a paycheck, the student loans quickly become a huge burden.

With the Baby Boomer generation retiring at an older age, it is increasingly difficult for college graduates to find jobs. In fact, according to a report from MSNBC, in 2009 “employers would hire 22% fewer college graduates than in 2008.” Additionally many baby boomers are stalling retirement because the financial recession wiped out many of their 401K retirement plans. Along with the financial crisis comes federal budget cuts, which is reducing the number of jobs available, especially toward those fresh out of college.

Another financial burden for college students is the cost of health insurance. Bowling Green State University School Health Director Dr. Glen Egelman stated that “some universities are requiring that students have health insurance before they are admitted to college, and if they don’t, they must buy into the school’s student health care plan or obtain their own insurance.”

Julio Manceras, a former student at the University of Texas, knows all too well what student loans, federal budget cuts and lack of health insurance can do to a college student. At the age of 19, Julio was hospitalized and diagnosed with a severe health condition known as “Supra-Ventricular Tachycardia, a condition that occurs when one’s heart has irregular electrical pathways.”

After Julio’s tenth stay in the hospital, his medical costs exceeded $500,000.00 because his family did not have health insurance. The hospital wanted to apply the financial aid from UT towards his medical costs, but because his student loans were funded through federal grants, it made it impossible. Like most college students who are legally considered adults, Julio was ineligible for Medicaid.

At www.gobankingrates.com, four steps of advice are given to college-bound students and recent college graduates. When applying for college, always look at schools with lower tuition rates, scholarship opportunities and apply for FASFA as soon as possible. Once in college, think about internships to get some experience in your career field. Set budgets for yourself by thinking down the road rather than spending impulsively.

Additionally, have a back-up plan, if you can’t find a job immediately after graduation, whether it’s to move back home, make a savings account, or get an internship. Lastly, once you find a job, focus on those student loans and your basic expenses, and for the rest of it, save as much as you can.

Julio Manceras is now approaching graduation as a pre-med student at Texas Christian University, and through his xperiences, has decided to become a doctor. Manceras said, “through my hardships of problems and observing my environment, I wanted in return to give the care many people cannot afford.”

Let’s see if others will be given the financial care and opportunity they deserve. Not just in the medical field, but in every field that every college graduate pursues as a career.

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