Although most of the talk around rising interest rates revolves around home buyers, one segment of the population that is sure to feel pain will be the millions of students who take on loans for college. Analysts expect the interest rate for students loans to jump as much as 2 percentage points for a typical $20,000 loan taken out by students. Sallie Mae, the student loan giant said that more than $129 billion was distributed last year in federally guaranteed student loans, grants, tax credits and loans to student families. The typical graduating college student will leave school with about $23,000 in outstanding loans that will take about 8 years to pay off. I am glad the job market is robust for these recent grads.
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