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posted by Fnord666 on Thursday August 27 2020, @03:58AM   Printer-friendly
from the stressed-out dept.

Student debt may hurt chances at full-time employment:

A recently published study led by The University of Texas at Arlington says that student debt may hurt students' chances of securing full-time employment due to added pressure in their job search.

[...] The researchers say that having student loan debt is a financial stressor to students that leads to additional stress during their job search, which in turn can harm their chances of securing a full-time job.

"Student loan debt creates an anticipated loss of financial resources, which brings higher levels of stress to student job-seekers," said Froidevaux, who is a fellow of the Eunice and James L. West Distinguished Professorship. Her research interests include career transitions, retirement and aging in the workplace, and identity negotiation.

The more financially strained individuals are, the less likely they are to have sufficient energy and motivation to invest in their search for a successful job placement, she said. Results from the study also suggest that students who are more stressed about their student loans were likelier to work more hours in part-time jobs. This stress in searching for a job reduced the likelihood of securing full-time employment upon graduation from college. The research team used data from 1,248 graduating seniors from four different American universities.

The current level of student loan debt in the USA is $1.6 trillion, above credit card debt and auto loans, and second only to mortgage debt.

Journal Reference:
Ariane Froidevaux et al, Is student loan debt good or bad for full-time employment upon graduation from college?, Journal of Applied Psychology (2020). DOI: 10.1037/apl0000487


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  • (Score: 5, Interesting) by VLM on Thursday August 27 2020, @01:30PM

    by VLM (445) Subscriber Badge on Thursday August 27 2020, @01:30PM (#1042662)

    Around 1990: I got $200/mo from the army reserves, about $300/mo from the GI bill, about $500/mo from a part time food store job, and about $400/mo from an internship

    Note that during the summer I stacked cash up at work with no tuition expenses, and the Army has uncountable professional development courses (at least my unit and MOS did) or plain old two weeks annual training if nothing else, so I usually started a school year with at LEAST $4K in the bank as a buffer, like for car repairs or whatever emergency expense.

    Around 1990: Spent about $400/mo on rent which was pretty extravagant for the time and location for a student, it was like a "young professionals" type of building not student. Tuition and books and fees every 3 months was about $1200 at the community college.

    Got a "real job" with tuition reimbursement partially via the internship before I transferred to the big four year school for the BS degree, and the "real job" paid about quadruple what I was getting at the store and zero tuition cost.

    Interestingly, I've never been asked professionally to see my transcript nor diploma. After you have a certain level of experience (maybe as little as first job?) nobody cares. Its not like my diploma says my first 56 credits came from a CC.

    In 2020: Reserves Army pay for a young E-4 is $301/mo for standard 4 MUTA drills (now it seems as I recall that most of my weekends were 3-day 5-MUTA or even 6-MUTA pay periods which means more pay, but the "army wide standard" is 4-MUTA pay ... so many folks will get up to 50% more, but all will get at least 4-MUTA worth of pay), GI Bill gets re-engineered every decade so I have no idea, part time retail jobs are no longer available to citizen teens the few jobs available do pay almost twice as much, internships are often unpaid or don't exist anymore. Whatever happened to the seeming standard experience of attend CC in the morning and your overpaid internship every afternoon?

    In 2020: My old bachelor pad 1BR rent is now $695/mo per the website. Tuition was capped at $140 per credit so they added over $30 of per credit fees to continue the gravy train, figure $2500 with textbooks.

    So generally speaking the cost of everything has about doubled, whereas possible income has more or less stagnated.

    Note that if you can't or won't join the military reserves it was nearly impossible in the 90s and utterly impossible today.

    Starting Score:    1  point
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