By David K. BroderSource: BloombergNews.com – Sep 26, 2018 09:17:15By David K.(Bloomberg News)A decade ago, the average college graduate could expect to make $80,000, while today, they earn just $37,000.
In some parts of the country, the gap is so stark that the College Board released a new report this week that showed the median annual income of students who graduated from a four-year liberal arts college in 2018 is $54,000 compared with $40,000 for graduates from four-time Ivy League schools.
The report shows that for every dollar a student earns after expenses and tuition, they are spending $2,000 more.
The median household income for the four- or five-year graduates of liberal arts colleges is $85,000 and they are the only group to earn more than $100,000 annually.
For a person with the median income of $55,000 in 2018, their median annual salary is $42,000 less than for someone with the same income, the report said.
The median salary for students with the lowest college debt is $25,000 while the median for those with the highest debt is more than a third of a million dollars.
The College Board, a nonprofit research group that focuses on higher education, released the report in partnership with the Associated Press and the Education Writers Association.
The college graduate with the largest debt is a senior at the University of Virginia, who is more likely to be unemployed, underemployed and on disability than the average graduate, according to the report.
For a college graduate earning $70,000 a year, their debt is over $50,000 higher than for those who earned less than $40.
A graduate from a liberal arts school who had $40 in debt was nearly six times more likely than the college graduate without the debt to be on disability.
The average college student is more dependent on student loans than their peers who did not attend college.
The student loan debt of a college grad is $18,500, according the College Access & Affordability Act, a law that requires colleges to make payments to students who borrow money to pay for education.
The number of college graduates with student loans has soared to $1.9 trillion from $764 billion in 2010, according a 2017 report from the National Student Loan Data Center.
Some students have struggled to pay back their loans as college costs have skyrocketed.
The number of graduates who defaulted on their loans rose to nearly 30 percent from 13 percent between 2005 and 2017, according an analysis by Bloomberg New Energy Finance.
Many students are unable to repay their loans because they are struggling to find jobs, and many have not yet completed their degrees.
According to a survey by the National Association of Colleges and Employers, the median student loan balance at public colleges and universities in 2018 was $22,500.
The loan balances for graduates at the nation’s top liberal arts schools increased from $30,000 to $75,000 last year.
The American Federation of Teachers, a labor union that represents college professors, urged students not to give up on their dreams.
“Students should be encouraged to pursue an academic education that pays for themselves and their families,” said the union’s national president, Karen Lewis.
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