From College News - New reports show that job market worsens for college students, and loan defaults threaten higher education.
Though the economy received a measure of good news when it was announced last month that unemployment figures crept slightly back down from 10.2 to 10 percent, there was a group of people who weren’t so lucky to receive any kind of favorable news--college students.
According to the Los Angeles Times, “the jobless rate rose four-tenths of a percent to 16 [percent] in November” for those who are in the 20-to-24 age range. (That’s you, in case you were just scanning this). Not only that, but according to the Labor Department statistics that the Times examined, the unemployment figure for college graduates represented the highest that the number’s been since 1983.
Having decimated all hopes of good news in the coming year, the Times article then discusses the career travails of one UCLA student, who, having earned a very solid grade point average in school, proceeded to have two interviews while applying for 600 jobs. Only two. Any math majors out there care to calculate what is no doubt an abysmally low percentage rate?
If you’re interested in reading the rest of the piece, head on over to the Times, though I’d might advise against it if you’re currently on the job hunt. The piece can be awfully discouraging.
Considering the depressing effects that the recession has had on the unemployed, according to the New York Times, this news is perhaps the last reminder college students need that the job market out there is tough.
But at least the students in the Los Angeles Times article made it to graduation. Not only are students dropping out of school due to commitments such as family and work, many are defaulting on their loans, to the point where the colleges in question would lose all federal student financial assistance under a new law.
According to the Chronicle of Higher Education, the new law would measure student-load default rates over a three-year period. The Chronicle reports how the Higher Education Opportunity Act would “begin counting borrowers who default within three years of their scheduled repayment.” Colleges would be ineligible for loans if they consecutively report a default rate higher than 30 percent for three consecutive years.
What’s the significance of that figure? Read more here.
By Mark Andrews