Employment and Wages Decrease For 25-34 Year Old Americans While Cost Of College Degree Set To Spike

loans college

Photo: centre for American Progress

It is imperative that Congress acts to keep college affordable for the millions of  college students and their families that rely on Subsidized Stafford Loans, according to a report from The centre for American Progress.The interest rate for Subsidized Stafford Loans loans distributed by the U.S. Department of Education is set to double to 6.8 per cent on July 1, 2012, meaning that 7.4 million of America’s 20.5 million college students will see their college costs go up an average of $1,000 per year of school unless Congress acts.

In other words, the cost of college for the average borrower taking out full Subsidized Stafford Loans is scheduled to increase by 20 per cent next year. 

college loans

Photo: centre for American Progress

College tuition is rising at 8.3 per cent per year while median weekly earnings for 25- to 34-year-olds have fallen 5 per cent since 2001.

More than half (53 per cent) of Americans under 25 that hold a bachelor’s degree were jobless or unemployed last year, which is the highest share in in at least 11 years. In 2000 the share was at a low of 41 per cent.

Overall only 54.3 per cent of Americans aged 18 to 24 are employed, which is the lowest rate since the government started keeping track in 1948.

From the report:

Young Americans and their families simply cannot afford to have Congress sit by and do nothing while the interest rates on Subsidized Stafford Loans are set to double in July. The great recession and stagnating wages have already made it more difficult for young Americans and their families to afford the cost of higher education. At the same time, obtaining a credential beyond high school has become more important than ever to achieving financial security for individuals as well as keeping America competitive in an ever-expanding global economy. 

Now check out how Obama is losing the support of 18- to 24-year-olds >

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