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News Link • Economy - Economics USA

Another Nasty Statistic Regarding College

The median starting salary for students graduating from four-year colleges in 2009 and 2010 was $27,000, down from $30,000 for those who entered the work force in 2006 to 2008, according to a study released on Wednesday by the John J. Heldrich Center for Workforce Development at Rutgers University. That is a decline of 10 percent, even before taking inflation into account. Of course, these are the lucky ones — the graduates who found a job. Among the members of the class of 2010, just 56 percent had held at least one job by this spring, when the survey was conducted. That compares with 90 percent of graduates from the classes of 2006 and 2007. (Some have gone for further education or opted out of the labor force, while many are still pounding the pavement.) So 4 in 10 graduates had no job at all - not even one that didn't use their putative skills for which they spent the money. But let's assume you do have a job. The median income was $27,000. What if you have $60,000 in student loans? On a 10 year amortization schedule and a 5% blended interest rate the payment is $633.75. Every month. Your gross income is $2,250/month. More than 25% of your gross income, before taxes, is consumed by student loan payments.

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