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Student loan debt has an influence over borrowers career choices long after graduation, affecting their job satisfaction, career advancement, and investment strategies. According to a recent study conducted by MissionSquare Research Institute, the debt thats carried by one in four Americans under 40 affects job-acceptance decisions for 56% of public-sector employees and 62% of those working in the private sector. When they choose to accept . . . jobs, [the] majority of them have considered how that position or that job can help them with their student loan debt, says the reports author and MissionSquares head of research, Zhikun Liu. It not only impacts people’s day-to-day financials, but also their morale at work, job acceptance, as well as their retention. While most professionals take salary into consideration, Liu says borrowers are more likely to view compensation as a top priority, even at the expense of other factors like job satisfaction or advancement opportunities. That was especially true among male, Black, and Hispanic borrowers, according to the survey, who were about 10% more likely to view the debt as a significant factor in their career choices. Perhaps that is why retention rates were significantly lower among borrowers, with just 39% saying they wanted to stay with their current employer, compared with 61% of those without student loans. We find that student debt leads to short-term financial planning and limited investment opportunities, which in turn hinders wealth accumulation and retirement planning, Liu says. They cannot take more risks, and their financial planning horizon is within the next few months, or within the year, versus [planning for] the next five, 10 years. Borrowers are less satisfied with their jobs long after graduation According to the study, younger workers are more likely to say that student loan debt has limited their career advancement opportunities. Borrowers of all ages, however, report higher levels of career dissatisfaction and lower levels of loyalty to their current employer. According to the MissionSquare survey, more than a third of borrowers said the debt has served as a barrier to career advancement. Furthermore, while 18% of public sector employees without student loan debt report low work morale, the proportion jumps to 23% among borrowers. It does force some trade-offs, says Cassie Spencer, a career coach who works with students, recent graduates and mid-career professionals. You may need to live at home for longer, if you can, or move to a smaller city with more affordable living costs, but that can mean [fewer] job growth opportunities. Not being able to afford rent in a major city while paying down student loans or feeling pressure to take a less desirable jobor one with more limited career advancement potentialto secure a higher starting salary can reduce borrowers job satisfaction, employer loyalty, and long-term prospects. Furthermore, as graduates get older, Spencer says the debt often forces borrowers to delay major milestoneslike purchasing a home, starting a family, starting a business, or changing careerswhich can make them feel stuck. It becomes a decision of, do I continue to work in this job or this industry that I don’t love, or that I feel is having a negative impact on my life and my mental health, for something that could be better, even though the pay is not there? she says. A lot of people in their early to mid-30s are not homebuyers yet; a lot of people are delaying starting a family; and theres a lot of factors, but I think student loan debt is one of those factors. Borrowers are better at pursuing professional development Though there are many challenges associated with student loan debt, its not all bad news for borrowers. This research suggests the added burden inspires them to pursue more professional development and educational credentials. According to the MissionSquare study, those with student loan debt are 37% more likely to say they are pursuing a professional development goalsuch as new skills, responsibilities, leadership opportunities, and credentialsor have already achieved it. The desire for additional skills training at an affordable rate and at a quick pace has inspired many borrowers to pursue one-year masters programs that begin during undergrad, often referred to as accelerated Masters or four-plus-one programs. The influx of four-plus-one programs and the rise in students specifically looking for accelerated, shorter-term programs is astronomical, Spencer says. She adds that such programs can help recent graduates begin their careers at a higher salary level, though there are risks, as it does add to their debt and makes it harder to switch careers later on. Gen Z is already a generation that really does want to invest in their skills, and they want employers that are going to invest in them, says Christine Cruzvergara, the chief education strategy officer for Gen Z career platform Handshake. For those with student loans in this generation, its even more so. The long-term financial implications of student loan debt Taking on such a significant debt load at such a young age can also make it harder for borrowers to set and achieve long-term financial goals. Borrowers are less likely to also be investors, according to the MissionSquare study, and those that were reported a much shorter investment horizon. As a result, public sector employees with student loan debt were 14% more likely to strongly agree that their retirement savings are inadequate, as well as 9% of private sector staff. According to a recent survey conducted by Handshake 54% of borrowers say their student loan debt is a major source of stress, including 61% of Black and first-generation borrowers. For some it can be crippling because they either don’t have the support or the knowledge or the teaching from anyone to know how to manage all of this, Cruzvergara says, adding that it can also inspire borrowers to learn about personal finance sooner. You can choose to make this motivational for you, and, quite frankly, get smart about your finances very early in your life. How employers can help student borrowersand themselves Cruzvergara advises all young peoplebut especially borrowersto seek out the education and advice they need to manage their money responsibly. She also implores organizations seeking to hire young talent to offer student loan repayment plans, a perk which 25% of undergraduates in the Handshake survey say is essential, but one that just a tenth of full-time employers offer. With most of this years graduates leaving school with debt, Cruzvergara says employers should also remain open-minded about where theyre recruiting from. After all, in an environment where loans can have lasting career and lifestyle implications, some of the savviest studens are intentionally turning down brand-name schools for more affordable alternatives. It doesn’t mean the student couldn’t get into the expensive private school that has a better brand name, but maybe it does mean that that student made a smart financial decision from the get-go not to take on all of that debt, she says. So, that talent might actually be just as good, just as smart, just as intelligent, but may not be at the brand name school that the employer has historically recruited at.
Category:
E-Commerce
Federal workers are facing uncertainty as President Trump and Elon Musk have already given notice to around 30,000 employees, with no signs of slowing down. The Department of Government Efficiency (DOGE) was created with the purpose of slashing the size of the 2.3 million-strong federal workforce, leaving many career government employees scrambling. For those affected, the transition out of government work can feel daunting. Many federal workers have spent yearssometimes decadesbuilding careers within the public sector, where job stability and structured career paths are the norm. Many people are now grappling not only with the financial implications of losing a job but also with the emotional toll of being abruptly separated from work they found meaningful. I dont cry often, but I absolutely lost it, one anonymous Park Service worker who was let go told Fast Company recently. I worked very, very hard, in a dangerous profession, to earn the position I was in, and to have it taken away from me truly hurt. That worker and tens of thousands of others have been thrust into a competitive job market, where everything from a workers skill set to the wording of a résumé may differ. While the road ahead might seem uncertain, career experts say there are clear steps laid-off federal workers can take to position themselves for new opportunities. Making a successful transition is about understanding the private sector’s expectations and adapting accordingly. 1. Evaluate Your Skill Set and Practice Interviewing The first thing to do when looking for a job is understand where the opportunities lie and what the requirements are for those roles, says Fast Company contributor and Careerminds expert Amanda Augustine. She recently helped put together this guide for laid-off federal employees navigating a career transition. She says once you find a job post that seems promising, its about seeing where your skill sets match up. Job postings can give you ideas on how you can translate your previous experiences into terms that are being used in the job description, says Augustine. Your skill set from a government job likely wont be a perfect match for the private sector, so its important to find a way to rephrase your strengths. Informational interviews are a way to get a better sense of where your skill set fits and what opportunities you should be looking into. This helps identify where a gap in experience might be that you can address by acquiring certification, a certain hard skill, or even a soft skill that you want to work to fill. Informational interviews can also help answer questions like what type of job you want to pursue, whether youd like to work at a nonprofit, in the private sector, or doing something entirely different. You can also ask about the best way to translate your skills. There is also a lot of information out there for job hunters to see what kinds of questions employers will ask in interviews based on the industry they are in, says John Mullinix, head of growth marketing for Ladders. On our site, we have a list of behavioral interview questions and how you might answer those for different industries. 2. Update Your Résumé When looking for a new job, a strong résumé is key, as its likely the first thing a recruiter looks at. Mullinix says former federal employees should probably condense their experiences. Federal résumés are often long because they want you to include every little detail. Most HR people are not going to spend that much time on your résumé, he says. We actually did a study. Right now they spend about six seconds looking at a résumé. So it’s not ideal for your résumé to be four to six pages long. You want it to be one to two max. When deciding what to leave on and off your résumé, the main focus should be functionality. Federal résumés tend to be organized chronologically, with detailed summaries of each position. But in the private sector, this is not always what recruiters are looking for. [Job seekers] want to include the [positions] that are most relevant or hyper-relevant for the roles that they’re going to apply to, Mullinix advises. We don’t need a 25-year summary. Try to keep it to the last 10 years. The language that you use on your résumé is also important, as you want to talk about impact and achievement versus process. Including quantifiable results instead of generic descriptions of duties and responsibilities is always more valuable, Mullinix says. Employers want to know what you did and the impact you had. For employees with government clearances, unless it’s relevant for the role you are applying for, Mullinix says, you dont need to include it. Government jargon does not always translate to the corporate world. When crafting your résumé, there is almost a language barrier in how government employees describe their skills in the private sector, says Augustine, noting, The first thing to do is [think about] the civilian equivalents to any really specific government jargon that nobody outside of your field understands. There is actually also a large database online that describes different government terms and can help you understand how to strip out some of that very specific terminology to make it more generic, or in terms that a prospective employer will appreciate. 3. Focus on Networking Networking can seem like a daunting task, especially if youre searching for connections outside your usual area of employment. But there are steps you can take to make it seem less overwhelming. Having an updated LinkedIn profile is key. One thing you want to do is make sure you’re updating it so that it’s telling the same story as your updated résumé, Augustine says. But even beyond that, it starts with just connecting with those you meet. LinkedIn is not just for the people you meet while you’re working. It’s [for] your friends, your family. Look up target companies and engage with their content on LinkedIn so you dont come off as cold in your outreach, Mullinix advises. Now might also be a good time to attend relevant conferences, trade shows and or other networking events to make connections with target companies. Connecting with everyone you know and sending them each a thoughtful message so they are reminded how they know you, while also identifying loose connections (like a friend of a friend), is beneficial, says Augustine. You can also identify people on LinkedIn who previously orked for the government and have already transitioned to the private sector. Think creatively about networking opportunitiesespecially when it comes to virtual options. There are various different ways to approach this, Augustine says. Not everybody’s good in a big, crowded room. Not everybody’s good face-to-face. One of the silver linings of COVID and the shutdowns is that a lot of virtual networking options opened up. Augustine says you might also consider joining efforts with a former coworker who has also been laid off. Finding someone else to work with and share resources gives you a support system along the way, she explains. The odds of both candidates being an exact perfect fit for the exact same role are fairly slim, so youre not really in competition. The job hunt may be challenging, and you may still be mourning your old role, but the most important thing is to be patient. Augustine and Mullinix agree that doing the work and staying consistent will help you land your next job. Be patient with yourself, Mullinix says. Do the things that are hard and do them consistently, and you should see success.
Category:
E-Commerce
According to reports released this week, the Trump administration is considering scrapping a hallmark finding that greenhouse gases endanger public healthand even some oil companies are opposed to the idea. Based on reports from both Bloomberg and The Washington Post, Lee Zeldin, the recently appointed administrator of the Environmental Protection Agency, has privately urged President Donald Trump to rewrite whats known as the Endangerment Finding, a federal statement released in 2009 that set the stage for the EPA to regulate greenhouse gas emissions under the Clean Air Act. Heres what to know about the finding, and what could happen if Trump rescinds it. What is the Endangerment Finding? The 2009 Endangerment Finding was the federal governments official acknowledgment that greenhouse gases are a threat to public health. The statement specifically identifies six problematic gases: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. The Administrator finds that six greenhouse gases taken in combination endanger both the public health and the public welfare of current and future generations, the statement reads. The Administrator also finds that the combined emissions of these greenhouse gases from new motor vehicles and new motor vehicle engines contribute to the greenhouse gas air pollution that endangers public health and welfare. Today, the Endangerment Finding is the key legal mechanism underpinning the regulation of air pollutants from vehicles and power plants. Scrapping the finding was first suggested in the right-wing Project 2025, which also advised eliminating federal restrictions on fossil fuel drilling on public lands and curtailing federal investments in renewable energy technologies. The move was also considered during Trumps first term, though it never came to fruition. What will happen if the Endangerment Finding is scrapped? Under Section 202(a) of the Clean Air Act, the EPA can regulate air pollutants if it finds that they cause, or contribute to, air pollution which may reasonably be anticipated to endanger public health or welfare. If the Endangerment Finding were to be revoked, that could set the scene for a major federal deregulation of greenhouse gas emissions, especially when it comes to the automotive industry and power plants. The possibility comes as several other levers of climate deregulation are on the horizon. This week, Congress is set to vote on two bills that would roll back climate regulations instituted in the final months of the Biden administration. The first bill concerns a fee on methane emissions by oil and gas companies, which the EPA said in November would reduce methane emissions by 1.2 million metric tons through 2035. The second bill concerns efficiency standards for tankless water heaters set by the Energy Department, which were predicted to reduce carbon dioxide emissions by 32 million metric tons over 30 years. Meanwhile, operations at the EPA might also have a major shake-up in store. During his first Cabinet meeting on Wednesday, Trump said Zeldin is currently planning to cut “65or so% of the people from environmental.” A White House official later clarified that Zeldin plans to eliminate 65% of what it says is the EPA’s “wasteful spending,” which will include staff cuts. How are experts reacting to this news? So far, several legal experts have suggested that an attempt to roll back the Endangerment Finding would result in an influx of legal challenges, and that it wouldn’t hold up under scrutiny. Sean Donahue is an attorney who has represented environmental groups that support the Endangerment Finding. In an interview with The Washington Post, he argued, You can have a lot of good and reasonable disputes about exactly how we should be addressing climate change. But the proposition that greenhouse gas emissions from human activities dont endanger public health and welfare is not a position that could be supported by the science or what EPAs own record suggests. David Doniger, a senior strategist and attorney for the Natural Resources Defense Council, told The Washington Post that his firm is prepared to challenge the move in court, should it come to that. Even some oil and gas companies are wary of the potential decision. According to Bloomberg, some energy companies have pointed out that nullifying the Endangerment Finding would open the doors for an influx of public nuisance lawsuits against oil producers and power plants. At the time of this writing, Trump has not commented on whether he plans to act on Zeldins recommendation.
Category:
E-Commerce
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