Forgiveness for student loans has become more difficult to get these days as a growing number of college students are having a difficult time finding jobs after graduation. Government figures show that young people aged 18 to 33 struggle with unemployment. They account for almost half of the 10 million jobless Americans. Financial experts also confirm there is less forgiveness for student loans.
Why Is There No Forgiveness for Student Loans?
Banks have sophisticated algorithms to calculate student loan risks. They are aware that a certain percentage of the students won’t be able to pay back their loans. Since many students have difficulties finding jobs after graduation, it makes it even harder. In the past, it was common to get forgiveness for student loans, meaning the student didn’t have to pay back the full amount, but forgiveness for student loans has become less and less common because banks refuse to take a loss because of the job market.
The Difficulty of Finding Jobs
According to a new study by Bentley University, there is a difference of opinion between young adults and business leaders. They disagree on the main causes of graduate unemployment. These days, three out of four hiring managers complain that college graduates are not ready for the job market and lack an adequate work ethic. These managers are not alone. A lot of other corporate recruiters and businesspeople in the industry agrees that fresh graduates are not prepared for their first job.
A report by St. Louis Community College says that more than 60% of employers mention applicants lacking “interpersonal and communication skills.” According to a Pew analysis of census data, 34% of 25-29 year olds completed a bachelor’s. 63% had some college under their belt. From this, we can say that 37% had no college education and probably won’t be able to find a good job.
A few other reasons why college graduates are not getting jobs:
- Increase in Competition.
Since college degrees are more common than before, it puts a lot of pressure on students to attend college to get a good job. This has resulted in even more college graduates and consequently, more competition for the limited number of jobs.
- Little or No Work Experience.
College graduates think that their degree alone will qualify them for a job. Wrong. Instead of spending years partying and wasting time, they can get an internship to enhance their skills and experience.
- Lack of Networking.
Networking plays a key role in getting a job, and more people are getting hired through referrals. The reason it is so effective is because it reduces all the worry of whether or not a person can do the job.
- Resume and Cover Letter.
Resumes and cover letters act as the first impression. Most college graduates don’t spend much time making their resumes and cover letters look and sound good. This is another reason why college graduates are not getting jobs.