Business

Interest Rates on Federal Student Loans to Rise Next School Year

While that number can be difficult to determine, Department of Labor data can give you a rough idea of ​​what workers in different occupations earn. website. Michael Itzkowitz, founder and president of the HEA Group, a consulting firm focused on college admissions and success, says the choice of major also affects the final salary and the debt that can be expected to be paid off after graduation. said to do.

Itzkowitz said salaries are likely to be higher in some majors.published by the group Spreadsheet On Thursday, average salaries four years after graduation for the most popular majors and highest-paid majors were released, based on April data from the Department of Education’s College Scorecard. The highest salaries ($90,000 and above) are concentrated in majors such as petroleum, computer engineering, computer science, and pharmacy, while salaries in fields such as fine arts, studio art, dance, and theater range from the low to mid-$30,000 range. It is in.

“Everybody should consider the cost of attending, in addition to the potential salary,” Itzkowitz said. “Can we recoup our costs in a reasonable period of time?”

Here are some student loan questions and answers:

For federal student loans, the limit is dependent student Typically $5,500 for the first year, $6,500 for the second year, and $7,500 for the third and fourth years. The cumulative limit is $31,000, allowing for additional years as needed. (For independent and graduate students, the borrowing limit is higher.) For PLUS loans, the limit is equal to the institution’s cost of attendance.

Private student loans are offered by non-federal banks and lenders, and have higher interest rates that vary by lender. Loans typically require a credit check and only borrowers with top-notch credit can avail the lowest published interest rates. Private loans may also have variable interest rates, and monthly payments can increase over time as interest rates rise. Student-loan advocates say private loans tend to be expensive, and federal loans, such as income-adjusted payment plans and the right to temporarily stop payments in the event of a setback such as unemployment or illness. It urges caution with private loans due to lack of protection for private sector. In addition, federal debtors in certain government agency and nonprofit employment may be eligible for debt forgiveness after a specified period of time.

Related Articles

Back to top button