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Recent College grads face challenging economic situation, says finance survey

The ever-increasing cost of higher education and excessive borrowing have resu

The ever-increasing cost of higher education and excessive borrowing have resulted in many recent college graduates who are having a very hard time being able to afford the goods and services they need to survive, according to a recent

The ever-increasing cost of higher education and excessive borrowing have resulted in many recent college graduates who are having a very hard time being able to afford the goods and services they need to survive, according to a recent finance survey.

Survey participants

The most recent Workonomix survey commissioned by accounting and finance staffing firm Accounting Principals involved more than 500 graduates and asked them about various aspects of their life including their knowledge of finance, debt, disposable income and salary. The poll involved graduates between the ages of 22 and 26, and was conducted by research firm Braun Research.

Survey results

The poll indicated that even though Washington lawmakers recently took steps to prevent interest rates on federal loans from doubling, various people are coping with high debt burdens upon graduating.

More-than two-thirds, or 68 percent of graduates are finishing school with an average of almost $40,000 student loan debt. Most of this debt burden - $27,029 - was in the form of student loans. However, another $12,742 was in the form of nonstudent loan debt.

"The most surprising finding in our Workonomix survey was the massive amount of debt these graduates had to take on to pursue a higher education," Jodi Chavez, senior vice president of Accounting Principals, said in the statement. "Entering the job market as a recent graduate is always stressful, but leaving school with this amount of debt puts added pressure on the newly employed."

Living expenses

Of the people that participated in the survey, 42 percent believed they would have more disposable income upon graduating. Unfortunately, many have not realized their expectations upon obtaining their degree. More-than four-fifths, or 83 percent of respondents indicated they are unable to pay for all the basic necessities they need - paying back student loans, groceries, car, rent and a cell phone.

Proactive management of finances

Although recent graduates are facing various financial pressures, they are being more proactive about their finances - and would utilize education provided by their employer. More-than two-thirds, or 68 percent of respondents indicated that financial education is not offered by their employer. Slightly-less-than half indicated that they would utilize this information if it was made available.

"Employers are in a unique position to help entry level workers navigate the challenges of being a recent graduate," Chavez said in the statement.

This information was released shortly after Labor Department data indicated that the United States only created 80,000 new positions in June.