Young people between the ages of 16 and 24 face an unemployment rate nearly twice that of the rest of the population, according to data from the Economic Policy Institute. 2010's 18.4 percent rate for youth was the worst in the 60 years that economists have collected such data. ColorLines notes that in 2010, 8.4 percent of white college graduates were unemployed, 13.8 percent of Latino graduates, and a dismal 19 percent of black graduates.
Then came this startling statement (emphasis mine):
The cost of a college degree is up some 3,400 percent since 1972, but as we all know too well, household incomes haven't increased by anything close to that number -- not for the bottom 99 percent of us, anyway.
Pell Grants have been steadily cut, and the Ryan budget in the US House would cut them even further. This means more students will get loans from private companies that have little in the way of accountability. As it stands now, those private and government issued loans will stick with a graduate even in the event of a bankruptcy. New legislation would allow those debts to be discharged during a bankruptcy proceeding.
In other words, a new college graduate may be facing bankruptcy and destroyed credit before finding a job.
cross-posted at MainSt/workingamerica.org
Good timing for this Susan. A week or so ago, Diane R. Show on NPR featured just this subject and many who called in shared tales of huge debt from college. Just attended a college graduation a couple of weeks ago, and the young lady, although bright, Summa Cum Laude, Fellowship and had grants, still graduated with debt. Our nation has missed the boat completely by at least thirty years. We've completely neglected education, healthcare and infrastructure and are now seeing the end results. All this coupled with many natural disasters taking place, and politicians making false promises of rebuilding, makes for a grim future picture for our country.
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