Student debt has been called a defining characteristic of this generation and tuition fees in American colleges, private or public, are on the rise. Since 1982, the cost of a college education has risen 439 percent.
However, with the bleak economic environment and weak job market, graduates are finding it increasingly hard to find a job to pay off those loans.
Rohit Chopra, the federal bureau’s ombudsman, said the initial findings on the student loan market were‘sobering’, calling the debt a big ‘risk for a generation of young people, many of whom are struggling in today’s economy.’
Despite the weak job market, economists still say higher education is a good investment, given the widening income gap between a degree and non-degree holder. According to ‘economic calculation’, the higher income will, in time they say, offset the investment cost, that is student loan debt.
However, CFPB officials also noted a surge in Americans going to college in recent years – a trend of students going to college to avoid the weak job market.
Recent studies have found that 81 percent of the class of 2009 had no job upon graduation.