The class of 2025 faces a difficult job market and student loan debt

As the class of 2025 begins its final year of college, a new survey from Handshake paints a sobering forecast. The survey's key findings show that a remarkable 57% of this year's graduates are pessimistic about entering the workforce. Contributing to their concerns are job competition, student loan debt, and the rise of generative AI. This represents a significant increase in pessimism compared to the class of 2024, where 49% expressed similar sentiments last year.

The survey, which included 1,925 students from 521 U.S. colleges, underscores the enormous pressure facing this year's college graduating class.

Student loan debt of the class of 2025

Student loan debt was highlighted as a major concern for the class of 2025. More than half (54%) of students said student loans were a significant stressor. Only 46% believe the amount of their student loan debt is manageable.

Comparing this survey data with our own student loan debt statistics, which show that the average student borrower has over $37,000 in student loans, can be daunting.

This average monthly student loan payment for 2024 is currently estimated to be $504 per month, but this number is skewed because many borrowers are on income-driven repayment plans with $0 payments.

Career prospects

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

Even though immediate employment prospects seem bleak, a majority of students still believe that their college experience has provided them with the skills necessary for personal and professional development.

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

However, many students continue to take proactive steps to improve their job prospects. The survey found that 68% of seniors attended career fairs and networking events, 63% applied for additional jobs, and 61% completed internships.

However, not all students make use of the resources available: one-third of respondents said they had no experience with their university's career center. This is worrying.

Final thoughts

The class of 2025 is just the latest class to face a difficult job market and student loan debt, a struggle that has been ongoing for college graduates since the early 2000s.

But with technological advances and rising costs, the same problems appear more difficult and become more visible to the public.

Don’t miss these other stories: