This time of year can be great for thousands of young people throughout the country who are in the process of wrapping up a lifetime of learning. College graduation ceremonies are taking place everywhere, and chances are that many of our Escondido readers know at least one friend or relative who is taking this next great step in their life. However, as the questions surrounding the value of a college education have begun to increase in recent years, some people may not know the reason: balancing the value of a college degree against thousands in credit debt.
For young people just getting started in their professional lives, credit can be a major factor in predicting future success. A recent article noted survey details which indicate that the average college graduate in America will leave college with approximately $35,000 in debt. Government-funded loans seem to be the major portion of this number, but debt owed to family members and credit card companies are also included. $35,000 in debt can seem like a staggering number, especially since some college graduates are still having trouble finding employment that utilizes the knowledge they gained in earning their specific degree.
The end of college and the beginning of joining the workforce is supposed to be a fresh start. The problem is, however, that with a crushing debt burden many graduates may be considering another kind of fresh start before too long: Chapter 7 bankruptcy.
College graduates aren't the only ones facing financial problems in this country. The stagnant economy is still offering limited opportunities for earning a living for millions of people. When these problems are combined, filing for bankruptcy becomes a consideration that many probably never expected when they put on the cap and gown and graduated from college on a beautiful spring day.
Source: CNN Money, "Class of 2013 grads average $35,200 in total debt," Blake Ellis, May 17, 2013