As if the majority of borrowers weren’t already crippled my high student loan debt payments, interest rates could be rising in a few short months. With even a small increase in percentage points threatening to push even more graduates into default, the realities of this crisis are becoming abundantly clear.
An Act of Congress
Just as it will take an act of Congress to clear up this mess, they are also the ones to blame for the increase in rates at the moment. Last week’s treasury bond auction set new rates that are certainly going to affect borrowers. Subsidized undergraduate loan interest rates are expected to rise from 3.86% to 4.66%, while subsidized graduate school loans rise from 5.41% to 6.21%. Although the percentage points don’t appear alarmingly high, this increase could add thousands of dollars to the loan balance of the average incoming freshman. Even more concerning is that this is likely only the beginning of the increase, and rates could rise to maximum cap level of 8.25% for undergraduate and 9.5% for graduate loans in a few years.
While we certainly can’t control what the government does there are people in Congress fighting for change. During the time we wait there are some options for finding debt relief. Student loan lawyers all over the country are fighting for the rights of borrowers and working to help lower monthly payments, prevent and stop default, and even find loan forgiveness. If you or someone you know is facing high monthly payments, contact our student loan lawyers about your options. There are ways to get out from under financial hardship and back in a state of comfort.