COVID-19 Creates New Money Concerns for College Students
With student loan debt in 2020 at a staggering $1.56 trillion, today’s college students were already facing a daunting financial hurdle. But the economic uncertainty of the pandemic is cause for additional concern. Millions of Americans are unemployed, and the job market is the worst it’s been in modern history, leading students to worry more about their futures after graduation.
At least 66% of undergraduates say the COVID-19 crisis has caused them to feel worse about their financial future, according to WalletHub’s 2020 College Student Financial survey. Many of them feel that the pandemic will make it even more difficult to find work. Already 60% of parents with kids between the ages of 18 and 29 report giving their children financial assistance within the last year.
Compare that to 1980, when one-third of young adults were financially independent of their parents by age 22. It’s certainly a different world, especially when it comes to student debt and job opportunities.
Being wise in choosing a college and carefully managing how much you borrow can make a difference. But as college students continue to work toward the goal of attaining well-paying jobs, student debt and the overall impact of the pandemic on the job market remain causes for concern.
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