Class Of 2025 Faces Tough Job Market And Student Loan Debt

As the Class of 2025 embarks on their final year of college, a new survey from Handshake reveals a sobering outlook. Key findings from the survey show that a significant 57% of this year’s seniors feel pessimistic about starting their careers, with competition for jobs, student loan debt, and the rise of generative AI contributing to their concerns. This marks a stark increase in pessimism compared to the Class of 2024, which saw 49% reporting similar feelings last year.

The survey, which included responses from 1,925 students across 521 U.S. colleges, highlights the intense pressures facing this year’s graduating college class. 

Class Of 2025 Student Loan Debt

Student loan debt was highlighted as a big concern for the Class of 2025. More than half (54%) of the students pointed to student loans as a significant stressor. Only 46% believe the amount of student loan debt they have is manageable.

When you compare this survey data with our own Student Loan Debt Statistics that show that the average student loan borrower will have over $37,000 in student loans, it can be daunting.

This average monthly student loan payment for 2024 is currently estimated to be $504 per month. However, that number is skewed because of the high number of borrowers in income-driven repayment plans with $0 payments.

Career Prospects

Students remain hopeful about their long-term career prospects, but most acknowledge immediate challenges. 57% of respondents to the survey feel pessimistic about their immediate job prospects. This anxiety is exacerbated by a turbulent political climate and uncertainty about the impact of AI on the job market.  

While immediate job opportunities seem bleak, a majority of students still believe their college experience has equipped them with the skills necessary for personal and professional growth. 

According to the survey, 88% of respondents felt that college contributed significantly to their personal development, while 68% believed it will help them secure a well-paying job.

However, many students are still taking proactive steps to improve their job prospects. The survey found that 68% of seniors were attending career fairs and networking events, 63% were applying to more jobs, and 61% were pursuing internships. 

However, not all students are engaging with available resources: one-third of respondents reported having no experience with their college career center. That’s concerning. 

Final Thoughts

The Class of 2025 is just the latest class to face a tough job market and student loan debt. This has been an on-going struggle for college graduates since the early 2000s.

However, technology and rising costs are making the same struggles seem more challenging and are allowing them to be more visible to the public. 

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