We hear all the time that student loan debt is on the rise, and isn't likely to slow down anytime soon. For all those federal loans, though, does the government really make any money?
According to a new report from student loan servicer Sallie Mae, parents are shelling out less money for their kid's college tuition. Before you break out the champagne, let's explore those numbers.
The proposal would link interest rates to financial markets — specifically the 10-year Treasury note — and cap rates at 8.25 percent for undergraduate loans and 9.5 percent for graduate loans.
Ignoring your problems rarely ever makes them go away. Anna learned that the hard way when the government started garnishing her wages after she defaulted on her student loan payments. But, she says, she's thankful it happened.
Despite some movement in Congress to alter the trajectory of what you might consider an incoming personal finance missile, interest rates on some government backed student loans are set to double on July 1.
The new face of debt is young and worried. Student loans affect nearly 15 million Americans under the age of 30 and many debtors are facing tens of thousands of dollars in repayment.