In an earlier post titled The debt to higher education, we had blogged about the financial burden of higher education on the students. Put simply, the burden is the heavy cost of college education today, and the huge debts in education loans which students (and their parents) need to pay off as they complete their college education and settle down to their chosen careers. If the amount of debt wasn’t trouble enough, the global economic downturn has added to their woes as they struggle to find suitable jobs with incomes large enough to pay for their loans and meet their living expenses.
Of course, many students do settle down happily into their careers; but many more are left to fend for themselves – taking up jobs on lower pay, or part-time assignments, or even worse, suffer the shame of unemployment. That proud dream of leaving home for college in a foreign country, finding a job after completing the degree programme, and living on one’s own terms fades away under difficult economic situations around the world. In the recent past, much to the embarrassment and frustration of many students in the Western world, they are returning home to live with their parents as they pick up temporary work to pay off their education loans. This is true for many Indian students as well.
The United States has coined a term for these students who have returned home from college to live with their parents while they look for options and incomes to pay off their education loans. The term is ‘boomerang kids’ and the New York Times had published an interesting article on them. In the article, titled It’s Official: The Boomerang Kids Won’t Leave, Adam Davidson writes,
“One in five people in their 20s and early 30s is currently living with his or her parents. And 60 percent of all young adults receive financial support from them. That’s a significant increase from a generation ago, when only one in 10 young adults moved back home and few received financial support. The common explanation for the shift is that people born in the late 1980s and early 1990s came of age amid several unfortunate and overlapping economic trends. Those who graduated college as the housing market and financial system were imploding faced the highest debt burden of any graduating class in history. Nearly 45 percent of 25-year-olds, for instance, have outstanding loans, with an average debt above $20,000… And more than half of recent college graduates are unemployed or underemployed, meaning they make substandard wages in jobs that don’t require a college degree.”
What’s worse, Adam Davidson reports,
“Some may hope that the boomerang generation represents an unfortunate but temporary blip — that the class of 2015 will be able to land great jobs out of college, and that they’ll reach financial independence soon after reaching the drinking age. But the latest recession was only part of the boomerang generation’s problem. In reality, it simply amplified a trend that had been growing stealthily for more than 30 years.”
And that,
“These boomerang kids are not a temporary phenomenon. They appear to be part of a new and permanent life stage. More than that, they represent a much larger anxiety-provoking but also potentially thrilling economic evolution that is affecting all of us. It’s so new, in fact, that most boomerang kids and their parents are still struggling to make sense of it. Is living with your parents a sign, as it once was, of failure? Or is it a practical, long-term financial move?”
These are searching questions and possibly hold true for students in India too – though Indian parents and families welcome their children back from a foreign education with more compassion. Unless there’s a quick global economic upswing with significant volumes of job creation, this ‘boomerang kids’ phenomenon can turn into a worrying concern for us all.
[Citation: It’s Official: The Boomerang Kids Won’t Leave by Adam Davidson, The New York Times.]