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HERE IS WHAT IS COMING UP ON YOUR HORIZON.
ROB MCCLENDON: AS A NEW CROP OF COLLEGE GRADUATES RECEIVE THEIR DIPLOMAS
AROUND THE COUNTRY, THEY COULD SOON BE A MINORITY.
FORTY-SIX PERCENT OF AMERICA'S COLLEGE STUDENTS DON'T GRADUATE WITHIN SIX
YEARS; YET ACCUMULATE MASSIVE AMOUNTS OF STUDENT LOAN DEBT.
OVER THE LAST DECADE, STUDENTS HAVE DOUBLED TOTAL ANNUAL BORROWING,
FROM 56 BILLION DOLLARS TO 113 BILLION DOLLARS IN CONSTANT DOLLARS.
IN FACT, A NEW STUDY SAYS THIS INACCESSIBILITY "IS ERODING THE AMERICAN DREAM
AND WEAKENING OUR NATION'S ABILITY TO COMPETE."
TODAY, WE EXAMINE EDUCATION, JOBS AND OUR ECONOMY; STAY WITH US FOR
OKLAHOMA HORIZON.
MALE ANNOUNCER: OKLAHOMA HORIZON IS MADE POSSIBLE BY
THE OKLAHOMA DEPARTMENT OF CAREER AND TECHNOLOGY EDUCATION.
FEMALE ANNOUNCER: OKLAHOMA'S INVESTMENT IN CAREERTECH PROVIDES MORE
THAN NATIONALLY RECOGNIZED TECHNOLOGY EDUCATION AND TRAINING, IT PRODUCES
SOLID FINANCIAL RETURNS FOR THE STATE'S ECONOMIC FUTURE; OKLAHOMA
CAREERTECH, ELEVATING OUR ECONOMY.
MALE: AND, THE OKLAHOMA DEPARTMENT OF AGRICULTURE, FOOD AND FORESTRY,
HELPING GOOD PEOPLE GROW GOOD THINGS.
AND NOW, FROM THE CAREERTECH STUDIOS IN STILLWATER, HERE'S YOUR
HOST, ROB MCCLENDON.
ROB MCCLENDON: HELLO EVERYONE; THANKS FOR JOINING US HERE ON
HORIZON.
WELL MORE THAN FORTY PERCENT OF RECENT U S COLLEGE GRADUATES SAY THEY
ARE UNDEREMPLOYED OR NEED MORE TRAINING TO GET THEIR CAREER ON TRACK.
ACCORDING TO A NEW ONLINE SURVEY, JUST OVER HALF OF RECENT GRADUATES SAY THEY
HAVE FULL-TIME JOBS IN THEIR FIELD OF STUDY.
NOW THE SURVEY ALSO UNCOVERS A GAP BETWEEN WHAT STUDENTS EXPECT TO
EARN IN THEIR FIRST JOB AND THEIR ACTUAL SALARY.
ONLY 15 PERCENT OF THIS YEAR'S GRADUATES THINK THEY WILL EARN LESS THAN
25,000 DOLLARS BUT A THIRD OF RECENT GRADUATES SAY THEY MAKE THAT AMOUNT OR
EVEN LESS, WHICH CAN MAKE IT HARD TO MAKE ENDS MEET, ESPECIALLY IF YOU HAVE
STUDENT LOANS TO PAY OFF.
THIRTY-FOUR PERCENT OF RECENT GRADUATES SAY THEY HAVE STUDENT LOANS OF
30,000 DOLLARS, WHILE 17 PERCENT SAY THEY OWE AS MUCH AS 50,000 DOLLARS.
AND THIS HAS EVERYONE FROM ECONOMISTS TO RECENT COLLEGE GRADUATES ASKING,
IS THE HIGHER EDUCATION BUBBLE ABOUT TO BURST?
SINCE 1982, THE COST OF COLLEGE HAS RISEN 439%.
AT THE SAME TIME COLLEGE GRADUATES HAVE BEEN TAKING ON INCREASINGLY ENORMOUS
STUDENT LOAN DEBTS AND THEN DISCOVERING THAT THEY CAN'T FIND A JOB TO PAY
THEM OFF.
SOME ECONOMISTS THINK THAT OUR HIGHER EDUCATION SYSTEM IS FORMING A
BUBBLE.
AND THAT THIS BUBBLE IS NOW ON THE VERGE OF BURSTING ECONOMIC BUBBLES
FORM WHEN PRICE OF INVESTMENT GOES UP OUT OF PROPORTION WITH ITS REAL
OR INTRINSIC VALUE; RETURNS ON INVESTMENT INEVITABLY GO DOWN, AND
THE BUBLE BURSTS.
SO WHAT'S CAUSING THIS BUBLE TO FORM THERE ARE THREE FACTORS INVOLVED.
COLLEGE TUITION HAS NEVER BEEN MORE EXPENSIVE AND COSTS ARE GOING TO
CONTINUE RISING.
A PRIVATE FOUR-YEAR EDUCATION WILL COST MORE THAN A QUARTER-MILLION
DOLLARS IN 2018.
BECAUSE OF THESE COSTS, TWO-THIRDS OF STUDENTS NOW GRADUATE WITH DEBT.
AND THE SIZE OF THAT DEBT IS INCREASING EVERY YEAR.
NATIONWIDE, STUDENT LOAN DEBT INCREASES BY 2800 DOLLARS EVERY SECOND.
IT'S ALREADY 10-BILLION DOLLARS LARGER THAN THE NATIONAL CREDIT CARD DEBT
AND STUDENT LOAN DEBT CAN NOT BE EXPUNGED BY BANKERS.
STUDENTS HAVE TO PAY IT ONE WAY OR ANOTHER.
MORE PEOPLE HAVE COLLEGE DEGREES NOW THAN EVER BEFORE; GREAT NEWS BUT
THE MARKET IS FLOODED.
EVEN STUDENTS WHO CAN FIND JOBS ARE EARNING LESS.
NEARLY HALF OF COLLEGE GRADUATES EARN LESS THAN 15,000 DOLLARS PER YEAR,
TWO YEARS AFTER GRADUATION; AND WAGES ARE FALLING STEADILY.
WHEN CHOOSING A COLLEGE, COMPARE COSTS CAREFULLY.
THE MOST EXPENSIVE COLLEGE ISN'T NECESSARILY THE BEST.
INVESTIGATE ALL FINANCIAL AID AND GRANT OPTIONS BEFORE CONSIDERING LOANS.
IF YOU DECIDE TO TAKE LOANS, ASSESS CAREER OPPORTUNITIES FOR YOUR
MAJOR TO MAKE SURE YOU'LL BE ABLE TO PAY THEM OFF.
AND REMEMBER, A COLLEGE DEGREE STILL HAS VALUE, BUT IT IS EXTREMELY
IMPORTANT TO UNDERSTAND WHAT THAT DEGREE IS GOING TO COST YOU.