As the United States faces a student debt crisis—impacting 44.7 million Americans—a new Cengage survey analyzed the value of a postsecondary degree from the perspective of recent community college and four-year institution graduates.
The research, “Graduate Employability Report,” revealed half of recent graduates possess student debt with just 22% paying it off completely. Though the United States Department of Education recommends not exceeding 8-10% of total monthly income for loan payments, two in five students spend at least 21%. Due to those high costs, 58% of graduates have considered a loan forbearance.
Fernando Bleichmar, executive vice president and general manager of U.S. Higher Education and Skills at Cengage, said these findings indicate a disconnect between postsecondary education and employment.
“Student debt is a nationwide issue that has caused most recent grads to take a forbearance on loan, and more than one quarter say it will take 10 years or more to pay them off,” he added. “It is time we transform the education system to more effectively serve students and deliver on its promise of providing graduates with a good job, career growth and upward mobility.”
Though almost half of graduates found their degree was not worth the price, the majority believed it was a “worthwhile investment” overall. For example, 64% attributed their degree to earning a higher salary, the research found.
However, higher education stigmas and skills gaps impacted employment.
Currently, 29% of all job openings require at least an associate’s or bachelor’s degree, though 58% of recent graduates disagree that a traditional degree should be required, according to the report.
