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Fidelity: New college grads surprised by amount of debt racked up

Fidelity Investments reports that 70 percent of the Class of 2013 leaves college with on average $35,200 in debt. That's all kinds of debt, from student loans and money owed to Mom and Dad to credit card balances.

And half of 2013 graduates say they are surprised how much debt they have accumulated, despite so much publicity on the subject, the Boston-based financial company said in its study released last week.

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The study found that 39 percent of grads — a jump of 14 percentage points over two years ago — said they might have made different decisions had they realized they would have a debt hangover. That includes squirreling away money earlier, investigating financial aid or trying to find ways to keep expenses down while in college, Fidelity said.

Fidelity's Keith Bernhardt said families need to talk about college planning much earlier than they do now.

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But there is evidence that students are thinking more pragmatically about college.

Fidelity found that 57 percent of new grads chose their major based on the paycheck it could produce later. Top majors: business, biology, psychology, engineering, accounting/finance.

Does this mean the end of the English major?


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