Recent College Graduates Are Deep in Debt
but Have Good Job Prospects, Study Finds
newseditor@chronicle.com
A study of recent college graduates released Wednesday showed that
they were deep in debt, lacked basic skills, and had gone back home
to live with their parents. But the study also found that recent graduates
were saving more, were involved with community service, and faced
a good job market with high salaries.
The report, "Now What? Life After College for Recent Graduates,"
by the Institute for Higher Education Policy and the Education Resources
Institute, was compiled using information from government agencies,
higher-education associations, colleges, and other organizations.
The report focused on the nearly seven million students who had completed
a bachelor's degree since 1992.
Among the findings:
- The typical graduate who borrowed to pay for college has total
monthly debt payments of $852, which include student loans, car
loans, and credit cards. The fastest growing segment of debt includes
student loans and credit cards. About 67 per cent of c ollege students
had a credit card in 1996, compared with 54 per cent in 1990. The
average card balance of students in 1995 was $2,100.
- Thirty per cent of recent graduates are living in their parents' home.
- Employers said in a survey that recent college graduates were deficient in such basic skills as thinking abstractly, establishing priorities, and using interpersonal skills to handle conflict or criticism. Computer science, accounting and engineering
majors lacked writing and presentation skills, employers said.
- Seventy-one per cent are saving money for education, retirement, or a home. The national average is 55 per cent.
- Average starting salaries are increasing faster than inflation. The highest estimated starting salaries are for engineering majors ($38,026 to $42,817) and the lowest are for psychology majors ($23,315).
To obtain a free copy of the report call the Education Resources Institute at
(800) 255-8374, extension 4762. |
