Congrats Class of 2014, Most Indebted Ever

Haven’t you heard? The class of 2014 is the most indebted graduating class EVER!

But really congratulations on your achievements. Not trying to be hurtful, just realistic.

According to a national analysis by Mark Kantrowitz, the senior vice president and publisher at Edvisors — which provides insight into college scholarships, loans and financial aid — the average 2014 college graduate with student loans has about $33,000 to pay back.

Even when accounting for inflation, this number is nearly double of what graduates paid back 20 years ago.

The number of students taking on student debt in order to pay for higher education is also on the rise.

More than 70 percent of students who received bachelor’s degrees are leaving their college campuses with student loans — a significant increase from the class of 1994, which had less than half of its bachelor’s degree recipients leaving with student loans.

Despite the growing burden of student loan debt, year after year, more students enroll in universities with the belief that getting a higher education is worth the money. This is probably because those with a college degree tend to make more money than those without.

The problem? Their future salaries will be really low and the bill for their student loan debt most likely won’t line up.

WHILE STUDENT DEBT INCREASES, SALARIES DECREASE

From 2005 to 2012, student debt has increased by 35 percent — adjusting for inflation — while the median salary has decreased by 2.2 percent.

On the bright side, in 2012, workers with bachelor’s degrees were making a reported median salary of $46,900, while the average student-loan balance for those younger than 30 was $21,400. With these numbers, it would be feasible for a graduate to pay off his or her student loans. However, with the way student debt and salaries are moving, it may become more difficult in years to come.

We seriously wish all recent graduates good luck in finding a job that allows them to pay back their student loans comfortably, while also affording housing, utilities, insurance, personal expenses and more.