College students overestimate starting salaries by $24,000

[1srelluc]

College Students Overestimate Starting Salaries by Nearly $25,000 | Clever Real Estate

Research shows starting salaries are 30% less than what undergrads expect. About 1 in 3 say they won't make enough to live comfortably.

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Undergrads told us what they expect to earn after graduation. They're off by nearly $25,000.

Every spring, "Pomp and Circumstance" ushers in a new class of college graduates ready to march into the workforce — although their pay expectations may be slightly out of tune.

To learn more about students' pay expectations, we surveyed 769 undergraduates pursuing an undergraduate degree. We found that students wildly overestimate their starting salaries, expecting to earn $80,004 on average one year after graduation, 42% more than the actual starting salary of $56,153.

When faced with reality, nearly 1 in 3 college students (32%) don't think they will make enough money to live comfortably after graduation.

Meh, most people overestimate their value.

From the source link: 51% of college students think they deserve a higher-than-average salary because they are smarter than their peers.

 

[odanny]

Now combine that with underestimating repayment of their student loan debt, which are notorious for causing college graduates some hardship in repayment. Especially with that compounding interest.

So we overestimated our earnings, and underestimated our debt. That's no way to go through life.

 

[1srelluc]

The cost of a BA degree in 1974 varied by institution, but for example, at Harvard-Radcliffe, tuition for the 1974-75 academic year was $5,350, which included tuition and room and board fees.

As best as I can tell a BA degree at a Virginia college like UVA was around half that. That 8K would be like 41K today.

Now a Virginia college averages 29K per year.....116K for four years.

 

[WorldWatcher]

Dear Graduating College Students,

Do what we did.


#1 Get a roommate.

#2 Drive a used car instead of a new one.

#3 Shop yard sales and thrift stores for your apartment to start out. Used, miss matched housewares and furniture work just fine for awhile.

Thank you for your attention in this matter.

WW

 

[odanny]

Meanwhile, journalism and communications majors have the most realistic expectations, but they still overshoot the average of $60,793 by 7%.


Ok, I'm just guessing here, but I think this is also an overestimation, and I think this is not accurate. Perhaps the top earners in this industry have pushed this average way up, and those top earners are in large markets, where news anchors tend to stay for extended periods, kind of like geriatric Senators.

I know where I live that journalism majors make far less than that, at least I hope so, because the on air talent on display is not worth half of that, most of these news personalities where I live get their start in my market and I wonder what on earth made half of them choose this career field.




Although teachers have historically been underpaid, education majors still anticipate making a starting salary of $75,186 — about 62% more than the $46,526 they will likely receive. Nursing majors also miss the mark, expecting a starting salary of $83,219 — 32% more than a realistic salary of $63,000 for nurses with one year of experience.


Also greatly dependent on the city you live in, teachers barely make anything in the hinterlands, and $46k may be the average, but it's (probably) even less here. Mid to upper $30's, probably not that far off. Nursing I can't speak to but that starting salary also seems high for the hinterlands, and overtime cannot be assumed.

 

[Zincwarrior]

Beats working at Taco Bell.

 

[odanny]

Report Highlights. The total average student loan debt (including private loan debt) may be as high as $42,673.

• The average federal student loan debt is $39,075 per borrower.
• Outstanding private student loan debt totals $144.9 billion.
• The average student borrows over $30,000 to pursue a bachelor’s degree.
• A total of 42.5 million borrowers have federal student loan debt.
• It may take borrowers close to 20 years to pay off their student loans.

This is the real problem, not starting salaries.

 

[Moonglow]

Beats working at Taco Bell.

But there is free food.

 

[Moonglow]

The most I ever had for a student loan was 2k. I worked my way through college.

 

[Zincwarrior]

But there is free food.

Taco Bell is not food. Taco Bell is merely 'food adjacent.'

 

[Winston]

The cost of a BA degree in 1974 varied by institution, but for example, at Harvard-Radcliffe, tuition for the 1974-75 academic year was $5,350, which included tuition and room and board fees.

As best as I can tell a BA degree at a Virginia college like UVA was around half that. That 8K would be like 41K today.

Now a Virginia college averages 29K per year.....116K for four years.

First year for me was 1980. I remember it was like $6,500. But that was tuition, books, supplies, dorm room, and meal plan that sucked.

 

[Zincwarrior]

The most I ever had for a student loan was 2k. I worked my way through college.

You literally can't do that now.

 

[Woodznutz]

Those unrealistic expectations that have caused so many problems have been carefully cultivated by teachers and government without any input from business and industry.

 

[Admiral Rockwell Tory]

Those unrealistic expectations that have caused so many problems have been carefully cultivated by teachers and government without any input from business and industry.

There you go blaming teachers again! Did one of your parent's run off with a teacher and leave you behind?

 

[initforme]

Those unrealistic expectations that have caused so many problems have been carefully cultivated by teachers and government without any input from business and industry.

So are you going to tell us that entering the workforce at 18 working for a pittance of $20 per hour is a wise move? Maybe if one lives with their parents until age 35 or so rent free. Then sure.

 

[initforme]

Dear Graduating College Students,

Do what we did.


#1 Get a roommate.

#2 Drive a used car instead of a new one.

#3 Shop yard sales and thrift stores for your apartment to start out. Used, miss matched housewares and furniture work just fine for awhile.

Thank you for your attention in this matter.

WW

Live at home with your parents until at least 30. Work and save. No dating, social life, nothing. Put your money away for yourself.

 

[Woodznutz]

So are you going to tell us that entering the workforce at 18 working for a pittance of $20 per hour is a wise move? Maybe if one lives with their parents until age 35 or so rent free. Then sure.

A very wise move for one who isn't going to college.

 

[Woodznutz]

Live at home with your parents until at least 30. Work and save. No dating, social life, nothing. Put your money away for yourself.

Parents might have something to say about that.

 

[westwall]

Now combine that with underestimating repayment of their student loan debt, which are notorious for causing college graduates some hardship in repayment. Especially with that compounding interest.

So we overestimated our earnings, and underestimated our debt. That's no way to go through life.

Who woulda thunk that "gender studies" doesn't pay well!

Shoulda gone in to aeronautical engineering, like my daughter. She's got an internship starting at Ferrari F1 in a few months.

 

[Zincwarrior]

Live at home with your parents until at least 30. Work and save. No dating, social life, nothing. Put your money away for yourself.

I did a light variant of that. Stayed home until paid off loans and had enough for a down payment.