More than 70 percent of graduates will carry student debt into the real world, according to the Institute for College Access and Success. And the average debt is just shy of $30,000.
Related: Obama's New Executive Action Eases Student Loan Burden
But the news will get worse next week when interest rates on student loans are set to rise again.
Though federal student loan rates are fixed for the life of the loan, these rates reset for new borrowers every July 1, thanks to legislation that ties the rates to the performance of the financial markets. The interest rate on federal Stafford loans will go from its current fixed rate of just under 4 percent to 4.66 percent for loans that are distributed between July 1 and June 30, 2015.
For graduate students, the rate on Stafford loans will rise from just over 5 percent to 6.21 percent.
Direct PLUS Loans for graduates and parents are still the most expensive, with rates rising to 7.21 percent.
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$30,000 @ 5 to 7% is like buying a car. Not a bad investment for a college degree which gives you a lot of earning power for the rest of your life.
ReplyDeletethe problem is not the loan the problem is these poor people can't get jobs. it's kind of like buying a new car that you can't buy gas for
Deleteyes, but school loans are 15 to 30K, PER year. and its 10 years or longer DOPE. do you know what that compounds too? a whole LOT of gov money making. oh, and now they are sticking those parents who have degrees (like me), kid gets the small loan at 5% and we get the large loan at 7.9%. so NO, its not that cheap. it is a rip off.
ReplyDeleteIf it is such a rip off get your money somewhere else. Nobody is forcing you to borrow money. If you couldn't afford it in the first place maybe you shouldn't have sent your children to college. Quit whining about how tough it is, DOPE.
Deletewell it's the government, wouldn't you expect to get ripped off? hell the usa government is raping everyone! even those poor democrats.
ReplyDelete8:27 A degree is worth nothing. Experience is worth it's weight in gold. A college degree is a poor mans toilet paper.
ReplyDelete8:27 - only a good investment if it is an 'in-demand' skill supporting degree...and you have the intelligence, potential, and conceptual understanding to go along with it...otherwise, all you have is an expensive piece of paper that you'll be paying the loan back for a long time.
ReplyDeleteYou could always get a gimme government job - they don't care about intelligence, potential, or conceptual understanding...just tell them you got yo degree and axe for a good job!
7:55 - I see people getting hired every once in a while...they just axe better!
ReplyDeleteHalf of these educated morons voted for Obama.Wonder how that's working out for them?
ReplyDeleteI would say more than half 9:28, they deserve what they get,
ReplyDeleteA post about college always seems to bring out the geezers who still live in the past. News Flash: The job market and hiring processes are not what they used to be. The market is much more competitive and jobs are more demanding.
ReplyDeleteI used to feel bad when the elderly were put in homes but you guys make it easy to toss that sympathy aside!