Class of 2009 struggling in the USA

A study of more than 1,000 members of that graduating class from 25 selective colleges found that two years after graduation, one-quarter of them were still living at home. Thirteen percent had jobs that didn’t require any college education. Most were still getting some kind of financial help from their parents.

Read the whole article over at Vox.

There is a lot of interesting literature about how graduating into a recession can have a permanent negative impact on lifetime earnings. I would add that because of the importance of the first graduate job in determining your “career trajectory”, there will be enormous long term consequences if a non-trivial amount of graduates in New Zealand don’t end up with the sort of jobs they went to university to obtain.

One of the better parts of how New Zealand does tertiary education is that student loan repayments only kick in when you earn more than $19,084 and come straight out of your wages to IRD as opposed to the US situation where some graduates may have several different student loan providers to deal with – and make payments even if their “investment” in education hasn’t earned them a dollar in return.