Life after school

In the long run, earning a college degree is supposed to make life easier on people. It is supposed to lead to higher paying jobs with benefits and an overall easier life. But according to an article entitled “‘Generation Debt’ deep into the red” this isn’t a given. It states that 80% of job market growth in the United States is found in low income industries like fast food and retail. These are jobs that do not require a college degree.

On top of the lack of jobs available, college graduates have to deal with higher student loans than ever before. On average, each student will have $20,000 in loans to repay upon graduation. The cost of housing is also increasing quickly. This could explain why 40% of college graduates move back in with their parents after graduation.

This situation will also change the spending patterns of those in their 20’s. People just entering the labor market are not going to be spending their money on entertainment and other wants. Most of their money will be spent on necessity items (food, housing, retirement). If this generation does not spend their money in this manner, it will be tough to survive and prosper in the future.

With all of these numbers, what are the economic consequences? Is the cost of earning a Bachelors Degree becoming greater than the benefit the degree will bring? Will this lack of benefits cause less people to attend college (Decrease in Demand)? Why would you go to college if upon graduation you can only see yourself working for minimum wage and living with your parents?

Or will more people pursue Masters Degrees or PhDs; hopefully educating themselves enough to create demand for their knowledge and skill in the labor market (Increase in demand).

Regardless of the answers, one thing is certain: life is hard.