|Guess which line represents student loan debt|
But what we know right now is that many nonprofits (as well as certain local government agencies and small businesses) are having an increasing difficult time retaining entry level staff for certain entry level positions. While some point to low salaries, the primary driver is the enormous debt burdens of young people entering the workforce.
Student Loan debt continues to skyrocket. In just seven short years from 2005-2012, the average student debt load ballooned 58 percent -- from $17,233 to $27,253. This is the only category of consumer debt which did not shrink/slow as a result of the financial meltdown of 2008. The net result is that young adults are starting their careers with a $400 monthly payment or $4800/yr. In rural regions of Pennsylvania, starting salaries can be as low as $24,000, which after taxes means up to 1/4th of take home pay can be consumed by student loan payments. It won't take a bright young mind long to figure out the need for a different career or even grad school.
|They won't pay off their balance on the salary you can afford|