ORLANDO, Fla. – What to know:
- New graduates are worried about the current job market.
- What do borrowers need to know before their student loan payments begin?
- What are the key financial moves young workers should consider as they start their careers?
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As college graduation season ramps up, many new graduates are stepping into an uncertain economic landscape. While employers continue adding jobs nationwide, entry-level opportunities have become harder to find, leaving many young adults anxious about their financial future just as they start to pay off their student loan debt.
Recent surveys show growing concern among Gen Z job seekers, with many prioritizing stability over career growth or higher salaries.
CBS News Business Analyst Jill Schlesinger says today’s graduates face a very different environment than previous generations. From understanding new repayment options for federal student loans to making smart decisions about health insurance and retirement accounts, Jill says early financial choices can have long-term consequences.
Here’s the full transcript of our recent interview:
WKMG-TV: It’s college graduation season, and new grads are facing a challenging job market as some also juggle outstanding student loans.
CBS News Business Analyst Jill Schlesinger is here to help guide them as they begin their financial journey.
Jill, what’s the latest on the job market for young graduates?
Jill Schlesinger: You know, we just got the April jobs report last week, and overall this year we have seen an uptick in job creation, about 76,000 jobs per month on average this year. But – and here’s the big but – it’s those junior-level job postings that have been a lot less abundant. We know that from a lot of different surveys. And, we also understand that new graduates are really feeling the heat.
We have a Gallup survey out earlier this week that showed a whole lot of pessimism among those new graduates. And when job search site Monster (.com) surveyed both new graduates and soon to be graduates, about two-thirds said they would trade higher pay for long-term stability.
Now, stability is not something you usually hear about with a 20-something, right?
So I really think it’s worth watching that. Job security has now edged out career growth, and it’s a trend that I think could actually limit some of these young graduates as they enter the labor force.
WKMG-TV: Yeah – it feels like it is a different world for them as they graduate college and get into the job market.
About 60% of graduates have federal student loans. What do they need to know about repayment options?
Jill Schlesinger: Well, the plans have changed, so definitely start with studentaid.gov to determine the amount of money you owe, the interest rate associated with the loan, and the payment terms. Now, your first bill – it actually is not due until six months after graduation. Now there’s a grace period, right? But during that grace period, the government will pay interest only for subsidized loans, not unsubsidized ones.
And if you can’t make your monthly payment, you want to consider an income-based repayment plan. There’s a new twist on this now – it’s called the Repayment Assistance Plan. It could reduce your monthly payment amount, but in exchange for that, remember you’re going to have a longer period of time that you’re going to have to repay the loan.
Whatever you choose, automate your payments so you never miss a month.
WKMG-TV: And Jill, many grads will be starting new jobs. What should they know about selecting the right benefits for those jobs?
Jill Schlesinger: I think it might surprise folks to hear this, but even if you’ve got health care through an employer, it still may be cheaper to stay on your parents health plan. Of course, offer your parents some money. If you’re going to stay on their plan, you can stay on a parent’s plan until age 26. If you are going to use an employer health insurance plan, consider a high-deductible one.
It can be a lot more affordable now when it comes to retirement. Even if you do have student loans, try to contribute at least up to the match if there is one, and if there is a Roth option for retirement, use it. You want to pay taxes upfront right now while you’re in a low tax bracket. That will pay off really nicely in the future.
WKMG-TV: Jill, thank you very much.
You can see Jill regularly on CBS Mornings and the CBS Evening News. For more analysis, go to JillOnMoney.com.