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Career Advice for Job Seekers

College Students and Recent Grads Concerned about Finances and more After Graduation

William Frierson AvatarWilliam Frierson
June 13, 2012


Those who don’t think that college students and recent graduates are concerned about their futures, think again.

According to a national survey sponsored by eHealthInsurance (NASDAQ: EHTH), this year’s college graduates are not likely to earn anywhere near as much as they think they need in order to be financially secure, and their expectations for getting employer-sponsored health insurance are unrealistic.

The survey, conducted in April 2012 by Kelton Research, found that this year’s college graduates may be in for a harsh reality check when they enter the job market. According to the survey:

  • Today’s college students estimate that they will need to earn an average salary of $81,600 per year after graduation in order to feel financially secure; however, former college students who had graduated in the past three years said that their first job out of college paid only $21,900 per year on average
  • More than eight-in-ten college students (82%) believe their first job out of college is likely to provide them with health insurance; however, nearly six-in-ten recent grads (59%) say that their first job out of college did not provide them with health insurance

The survey also revealed a high level of anxiety about student loans. A strong majority of both current students and recent grads would risk going uninsured rather than default on their student loan payments:

  • Among those with student loans, about six-in-ten current students (58%) and recent grads (62%) are afraid they won’t be able to pay their student loans at some point during their twenties
  • More than seven-in-ten current students (72%) and recent grads (75%) with loans say that they would rather go without health insurance than default on their student loans

Other survey findings on students’ and grads’ expectations for their careers and incomes include the following:

On Job Market Prospects

A majority of current college students (62%) are afraid they won’t find a job after graduation; more than half (54%) are afraid they won’t find a job in their chosen field

  • Six-in-ten recent grads (60%) say they have already run into trouble finding a job or are worried that they won’t find a job at some point in their twenties
  • When asked to identify “non-negotiable” employment benefits from a list, students (40%) and grads (38%) say they are more likely to pass on a job that didn’t offer health insurance than any other benefit
  • Over half (51%) of both current students and recent grads think it’s more important for new college graduates to take a job they may not like in order to get health insurance, rather than taking a job they like but that doesn’t provide coverage

On Income Expectations

  • While current students estimate they would need an average annual income of $81,600 in order to feel financially secure after graduation, recent grads say they would feel financially secure with an annual gross income of $61,800 on average
  • The survey suggests that current students don’t really expect to feel financially secure anytime soon, however: they expect their first job out of college will earn them an average annual salary of $37,100
  • Among recent graduates, women believe they need a substantially higher annual income ($80,300 on average) compared to men ($42,300 on average) in order to feel financially secure
  • Among current students, men expect their first job post-graduation to pay substantially more ($41,700 on average) than women envision ($32,200 on average)
  • Both of these are still substantially higher than the average $21,900 that recent grads report their first job out of college actually paid them
  • Parents of current students or recent grads believe their children should feel financially secure with an annual income of $54,200 on average

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