Students Expect 10+ Years of Student Loan Debt

Share Article

Majority of student loan recipients expect it to take more than 10 years to pay off loans.

Being saddled with debt after college is a primary driver to finding a post-graduation job early.

CollegeGrad.com, the #1 entry level job site, today released its survey results on how long college students anticipate it will take them to pay off their student loans. 51% of student loan recipients say it will take them more than 10 years to pay off their student loans. That's a 5% increase compared to two years ago.

Considering the increase in interest rates for federal student loans, combined with the ever-increasing sticker price of a college education, it's not surprising that students are faced with larger student loan bills upon graduation, and a lengthier payback period.

"The financial demands being placed upon college graduates are increasing," said Brian Krueger, President of CollegeGrad.com. "Being saddled with debt after college is a primary driver to finding a post-graduation job early."

With only a six-month grace period before having to begin payments on their loans, it is critical for graduates to quickly begin earning a steady income. Graduates are faced early-on with some of the tough financial realities of the real world. Krueger points out, "having a steady income is important for future financial success. It affects credit records and the ability to take out loans for things such as buying a car or a house."

Students often receive loans from a variety of institutions. Upon graduation, they are typically faced with not just one student loan bill, but a set of multiple bills. A popular student response is to consolidate their loans, which will roll all of their high-interest payments into one lower interest monthly bill.

Students have an opportunity to start off on the right financial footing by having a job offer in-hand by the time they graduate. CollegeGrad.com is a great first stop for entry level job seekers. Job seekers can use the resume templates to create or update their resume, research more than 300 entry level career fields, and apply directly to relevant entry level positions by visiting the CollegeGrad.com job board.

Following are the overall survey results:

How long will it take to pay off your student loans?

  • I have no loans – 30%
  • Less than 5 years – 13%
  • 5-10 years – 21%
  • More than 10 years – 36%

The survey was conducted nationally using an online poll placed on the CollegeGrad.com home page during February, 2007. The results are based on more than 1300 respondents.

About CollegeGrad.com:

CollegeGrad.com is the #1 entry level job site on the Internet and is the leader in the field of entry level job search. Brian Krueger is President and Founder of CollegeGrad.com and author of the best-selling book for entry level job search, College Grad Job Hunter.

CONTACT INFO: Heidi Hanisko, CollegeGrad.com, 262-375-6700 or contact us online.

Brian Krueger is available for interviews with national TV, radio, magazines and newspapers as an industry expert on college/entry level hiring, as well as Internet job search.

This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Heidi Hanisko