Muslim World Report

Drowning in Debt: A Graduate's Struggle After Studying Abroad

Dr. Anthony Lindsay | Mar 29, 2025 9:28 AM | 6 min read | 1274 words

TL;DR: A 27-year-old master’s graduate from India faces overwhelming debt after studying in the US, compounded by an unforgiving job market. This blog post explores the urgent need for support systems to assist graduates in overcoming financial burdens and finding meaningful employment.

From Dreams to Debt: The New Graduate Crisis in India

In an increasingly interconnected world, the pursuit of education has long been heralded as a pathway to upward mobility. However, for many graduates in India, this journey is fraught with formidable challenges. The plight of a 27-year-old master’s graduate, burdened by an overwhelming 40 lakh education loan incurred to study in the United States, exemplifies the broader implications of educational debt, economic downturns, and employment hurdles faced by a generation striving to escape cyclical poverty. His experience illustrates systemic failures that resonate not just within India, but globally.

Upon completing his degree in 2022, he encountered an unforgiving job market, exacerbated by economic slowdowns and stringent visa regulations. Returning to India, he found himself unemployed, weighed down by debt, and struggling with the collapse of his family business. His eventual job, which pays 75,000 INR a month, leaves him with a mere 9,000 INR after accounting for the hefty monthly EMI of 66,000 INR on his education loan. This dire financial situation is intensified by familial obligations, particularly regarding his father’s health, leading to significant emotional and physical exhaustion. His plight reflects that of countless graduates returning from abroad, underscoring the urgent need for robust support systems to assist young professionals navigating this precarious landscape of debt and unemployment.

Recent research highlights that rising educational debts are not merely individual burdens but signals of deeper socio-economic vulnerabilities threatening to destabilize communities and contribute to broader national crises (Kalleberg, 2009; Harvey, 2007). Graduates, once seen as beacons of potential, risk becoming liabilities under the weight of unsustainable debt and precarious job prospects.

What If the Economic Downturn Deepens?

Should the current economic downturn deepen, the ramifications would be severe, not only for individual graduates but for the Indian economy at large. Key concerns include:

  • Rising Unemployment: Disillusionment among young professionals may deepen as they feel betrayed by a system that promised much but delivered little.
  • Talent Exodus: Graduates may seek opportunities abroad, depleting India’s intellectual and innovative capital (Doherty, 2006).
  • Intensive Job Competition: As companies tighten their belts, entry-level positions may diminish, forcing graduates to accept lower wages and creating a cycle of underemployment (Kalleberg, 2009).
  • Political Instability: Increased dissatisfaction could lead to civil unrest, as disillusioned youth demand accountability from failing institutions.

Moreover, stagnating wages and rising debt burdens could exacerbate mental health issues stemming from job insecurity and financial stress (Allen et al., 2014). The potential for civil unrest grows in tandem with economic hardship, particularly in a nation like India, where socio-economic disparities are already stark (Sundari Ravindran, 1993).

What If Support Systems Are Established?

Conversely, if the Indian government and educational institutions proactively establish robust support systems for graduates, the landscape could transform dramatically. Consider the following initiatives:

  • Debt Relief Programs: Comprehensive plans offering interest rate reductions, grace periods for loan repayments, and scholarships for high-demand fields could provide crucial assistance.
  • Career Counseling and Job Placement Services: These services could help graduates navigate the job market more effectively.

If structured effectively, these policies could not only provide immediate financial relief but also foster a sense of community and resilience among graduates facing similar challenges. Learning from successful models in other countries, India can adapt strategies to address its unique challenges (Doherty, 2006).

This cultural shift must also involve a reevaluation of how society values vocational training and skill development, encouraging youth to pursue entrepreneurial ventures or alternative career paths instead of solely traditional employment (Ferguson & Gupta, 2002).

Strategic Maneuvers for Stakeholders

To address the multifaceted challenges facing graduates in India today, various stakeholders—including government, educational institutions, and the private sector—must engage in strategic maneuvers that align with both immediate needs and long-term goals.

  • Government Initiatives:

    • Establish a comprehensive policy framework encompassing debt relief programs tailored to students and graduates.
    • Invest in vocational training programs aligned with market needs to bridge the gap between education and employment.

  • Educational Institutions:

    • Partner with industries to create internship and employment pipelines for graduates.
    • Reform curricula to focus on practical skills and entrepreneurship.

  • Private Sector’s Role:

    • Participate in social responsibility initiatives aimed at aiding graduates by offering mentorship programs and job shadowing opportunities.

Additionally, workshops on financial literacy, career strategies, and mental well-being can empower graduates to manage their circumstances more effectively. Establishing networks among graduates to share resources, job leads, and emotional support can create a community of resilience that allows individuals to navigate the complexities of this economic landscape.

Addressing the Need for Comprehensive Policy Reform

A comprehensive policy reform approach focused on addressing educational debt within the context of India’s socio-economic landscape is crucial. Policymakers must recognize that the burden of educational loans has social implications extending beyond individual graduates. The persistent cycle of debt can lead to diminished consumer spending, limiting economic growth and hindering social mobility.

Key strategies include:

  • Income-Share Agreements: Explore alternatives to traditional loan-based funding for education that allow students to pay back costs based on their post-graduation income.
  • Collaborative Efforts: Educational institutions should collaborate with government agencies to develop curricula that align with labor market needs, enhancing employability prospects.

The Role of Cultural Change in Supporting Graduates

Addressing the graduate debt crisis also necessitates a cultural shift in how education and career success are perceived. In a society that often equates higher education with success, there must be recognition of the value of vocational training and alternative career pathways. Promoting diverse educational routes can help alleviate pressure on traditional university systems and provide graduates with viable options that align with their interests and skills.

Fostering mentorship and community networks can provide support to young professionals navigating the complexities of the job market. By connecting graduates with experienced professionals in their fields, mentorship programs can offer guidance, networking opportunities, and emotional support, contributing to a more resilient workforce.

Conclusion

The plight of graduates burdened by debt and economic uncertainty demands urgent attention. Policy reforms, support systems, and cultural shifts are essential to address the systemic challenges facing young professionals in India. The potential consequences of a deepening economic downturn underscore the urgency of these actions, while the benefits of establishing robust support mechanisms could pave the way for a brighter future.

As various stakeholders come together to address these issues, the potential for societal growth and resilience increases. By cultivating a workforce that is empowered, connected, and adaptable, India can position itself for long-term prosperity and stability in an increasingly competitive global landscape.

References

  • Allen, J., et al. (2014). “The Effects of Job Insecurity on Mental Health and Well-Being.” Journal of Occupational Health Psychology.
  • Bosworth, B., & Collins, S. (2008). “The Empirics of Growth.” Journal of Economic Perspectives.
  • Doherty, R. (2006). “Talent Mobility and Economic Growth: The Case for India.” Global Talent Management Journal.
  • Ferguson, J., & Gupta, A. (2002). “Spatializing States: Toward an Ethnography of Neoliberal Governmentality.” American Ethnologist.
  • Harvey, D. (2006). A Brief History of Neoliberalism. Oxford University Press.
  • Harvey, D. (2007). “The Right to the City.” New Left Review.
  • Kalleberg, A. L. (2009). “Precarious Work, Insecure Workers: Employment Relations in Transition.” American Sociological Review.
  • Knack, S., & Keefer, P. (1997). “Does Social Capital Have an Economic Payoff? A Response to the Special Issue.” Journal of Economic Literature.
  • Strandh, M., et al. (2015). “The Impact of Mental Health on Employability: A Systematic Review.” International Journal of Social Welfare.
  • Sundari Ravindran, T. (1993). “Gender and Health in India: An Inter-sectoral View.” Economic and Political Weekly.
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