Highly Educated and Deep in Debt - byAmyManzetti...

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Highly Educated and Deep in Debt by Amy Manzetti Consumers accounted for 97% of all bankruptcy filings in the U.S. in 2002, according to the  American Bankruptcy Institute (ABI) in Alexandria, Va. In 2001, 9% of those applying for personal  bankruptcy were younger than 25, according to a Visa Corp. survey. Seven years ago, only 1% of  personal bankruptcies filed were by people 25 or younger. Financial experts estimate that the shaky economy could force more than 1.5 million Americans  into bankruptcy this year, and about one-third of them will be in their 20s and early 30s. Why are so many young adults filing for bankruptcy? Maybe because 30% of college graduates  enter the work force saddled with $10,000 to $25,000 in credit card debt and student loans,  financial experts estimate.  Almost 28% of those surveyed by Nellie Mae, a national provider of higher education loans for  students and parents located in Braintree, Mass., had combined undergraduate and graduate  student debt of more than $30,000. For 22% of them, loan payments ate up more than one-fifth of  their monthly income. To support postcollege debt and other expenses, college graduates need to earn more than  $38,000 a year. It's estimated that new college graduates may need up to six months to find jobs  in their career fields; only 51% of college students have jobs by the time they graduate. The good news: A 30-year-old today is 50% more likely to have a bachelor's degree than his or  her counterpart in 1974 and earns $5,000 more per year, adjusted for inflation. However, he or  she also has more in student loans and credit card debt, is less likely to own a home, and is just  as likely to be unemployed. The future of Social Security for a 30-year-old today is unknown; a 
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This note was uploaded on 09/13/2011 for the course LEARNING L 110 taught by Professor Afrancis during the Spring '11 term at Community College of Philadelphia.

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Highly Educated and Deep in Debt - byAmyManzetti...

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