Money Matters

The Huge Money Problems Facing New College Graduates!

It’s no secret that there are many problems with our country. More often than not, the main problems are financial. People always complain about money woes and issues with their finances. Today, I want to talk about a selection of the public that suffers worse than others; college graduates.

Believe it or not, there are many problems facing new graduates. In this piece, I’ve picked out two of the biggest money problems.

High Amounts Of Debt

It’s a simple fact that most college graduates start this new phase of their life in debt. Going to college is something most students dream of. It’s seen as the holy grail of education, a college degree can help you get a better life, right? You’ll be in a better position with a degree than you would be without one. So, it makes perfect sense to devote three to five years of your life to this higher level of education. To twist your arm, even more, many institutions say they only hire college graduates. To get a lot of jobs, you need a proper degree, and have to go to college.

The problem is, a college education isn’t free. Unless you’re highly talented and win a scholarship somewhere. Most students have to pay thousands of dollars for the privilege of gaining a higher education. I know, it’s pretty ridiculous when you think about it. Education is one of the essential things in life and one of the most expensive. Many students are trying to pay their way through college, they get a job, and pay the fees. For a lot, they have to turn to student loans and student financing. What this then means is that they leave college with a degree, but lots of debt hanging over them. They have to worry about this debt as they look for a new job. The main problem with student debt is that it leads to more debt. You get desperate and want the debt to disappear. So, you get another loan to pay it off, only to be in debt to someone else!

There are many new graduates that start off with student debt and become swamped with multiple debts by the time they’re 30. Thankfully, there are things in place to help young people reduce their debt. You have debt relief companies that try and reduce your debts for you. Be warned, you should look for a company with a good rating from the Better Business Bureau. Otherwise, you don’t know whether to trust them or not. Companies such as National Debt Relief, owned by CEO Alex Kleyner, are an example of a company with a good rating. There are loads out there, and they can help you out. Also, new student finance options are being brought in to help students from the get go. The government wants to introduce more grants and scholarships, making college more affordable. If this happens, fewer students will leave college in debt. As a result, there’s no student debt to lead to other debts!



Difficulty Finding Work & Making Money

Remember how I said college education should put you in a better position to find work? Well, the key word there is ‘should.’ In theory, yes, you should be in a much better position. You have a degree that is desirable, and companies are looking for graduates. The problem is, there are so many other people out there with degrees just like you. To make matters worse, they have degrees from more prestigious colleges/universities. You could have a degree from Brown University, a very prestigious establishment. But, you could be in competition from someone with the same degree from Princeton. They’ve been to the best college in the country, and are now in a better position than you.

It’s no secret that graduate jobs are hard to come by for a lot of students. You work so hard, only to find it difficult to get a job. As a result, you’re forced to find a part-time job that you could’ve had without a degree. You’re earning less money than you should, and wonder whether you’ve wasted years of your life. That’s the main problem with a lack of jobs, you don’t have a chance to earn as much money as you deserve. With a limited income, it’s hard for you to proceed with life. You’re stuck at your parent’s house for much longer than you wished.

Also, a lack of income is a huge problem for older graduates. Some people attend college when they’re older, and have a family. So, they struggle to find a job and don’t earn the money they need to provide for their family. To add to this, think about the first problem I spoke about, debt. How can you pay off your debt when you can’t find a job?! Students are in a very difficult position once they graduate from university/college. There’s a real danger they get stuck in a tough financial situation. They’re in debt, can’t find a job, and the debt worsens. It’s ironic as the work problem stems from the increased competition. Why is there so much competition? It’s because there are so many students. Why are there so many students? Revert back to my earlier point about companies saying they hire graduates with degrees! People are encouraged to attend college, only for things to turn out different to how they expected. The fact is, the longer a graduate goes without a full-time job, the worse off they will be. It’s impossible to find financial stability when you haven’t got a secure job. Also, how can you prepare for the future? You’ve got no steady income, so, you can’t put plans in place. You can’t start saving money or planning investments. The bottom line is, graduates need a job to start getting their finances stable and secure.

Student debt and difficulty finding work can be huge issues for graduates. Especially when both of them occur at the same time. Don’t get me wrong, a college education can still be a great thing. You just have to be financially prepared for it. Ensure you can afford to go to college, and pick a course that has high job prospects.

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