Job Market and Debt Traps Recent Grads
Recent graduates are facing two very troubling situations: growing student loan debt and difficulty finding work in their fields.
The result: More students are choosing lower-paying jobs outside of their fields just to keep up with student loan payments. It’s not an uncommon situation anymore. In an article published in October of this year on the New School Free Press blog, Rosanne Sonatore, the director of career development at the New School, called that type of work a “survival job.”
It’s no secret anymore that student loan debt is on the rise and is presenting problems for those struggling with their debt as well as the economy. Last month, we published a story about the Institute for College Access & Success’s Project on Student Debt study which showed that debt among 2009 graduates was higher than 2008 graduates, and unemployment rose during that same period.
Can the situation be improved?
While some things are outside of your control as a recent graduate, such as the unemployment situation, a few things are within your control.
- Avoid default. Now that the grace period is over for most of you who took out student loans, you’ll need to keep in close contact with your lender. There are several ways to avoid defaulting on your loan. Consider all options.
- Balance your budget. If you’ve just started paying back your student loans, make sure you’re using some type of budgeting system to keep your finances in order.
- Continue to seek better jobs. Although the job search process is tiring, don’t give up. Use online resume databases and job search tools to receive notifications of jobs that fit your skill set.
- Use your school’s career development center. Remember that these departments were created with the specific purpose of helping you find work after graduation. If you’re struggling, make an appointment with a counselor to help you determine next steps.
- Ask for referrals. Now more than ever, it’s easier to connect to people in your social circle using Facebook, LinkedIn, and similar websites. Reach out to friends and family and let them know you’re looking for a job (or soon will be). You may want to send them your resume so they will have it for easy access.
- Stretch yourself. Don’t necessarily stretch yourself thin, but definitely get creative and consider non-traditional work before settling for a low-paying job. Sometimes, online work as a marketing or virtual assistant pays more than traditional jobs like waiting tables or customer service. You could also do freelance work, using your school portfolio as a supplement to your resume. Use your computer-savvy and social media experience to your benefit, as it’s a skill set many employees could use.
- If you’re still in school but are planning to graduate in December or in the spring, don’t wait to start looking for work. Start looking now, because there is going to be a lot of competition.
Image credit: Alan Cleaver (flickr)
