Increased costs mean many students have to borrow more money at higher rates, further exacerbating the student debt problem.
WASHINGTON — Despite White House efforts to provide some relief to student loan borrowers, those arriving on campus this fall are being financially squeezed by higher college costs and rising interest rates that make it more expensive to borrow money to cover those expenses.
“Borrowers going into the future need to be aware that rates are probably going to take a significant jump next year,” said Robert Farrington, founder of The College Investor, which advises student loan borrowers. “I think we’re going to see those rates jump at least another 1% to 2% come next school year, which is really going to increase the costs for borrowers.”
But Biden made it clear that the debt cancellation was a one-time event and his plan did not address the underlying issue around the rising cost of college, offering less benefit for incoming students who won't be eligible for loan forgiveness for the money they are taking out to pay for tuition this fall and beyond.President Joe Biden announces a student-debt relief package in the Roosevelt Room of the White House in Washington, D.C., on Aug. 24.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Activists Condemn GOP States’ “Sham” Lawsuit Over Student Debt ForgivenessSix Republican-led states filed a lawsuit on Thursday aiming to stop tens of millions of student loan borrowers from receiving relief from President Joe Biden’s debt forgiveness plan.
Weiterlesen »
GOP states sue Biden administration over student loan plan | amNewYorkSix Republican-led states are suing the Biden administration in an effort to halt its plan to forgive student loan debt for tens of millions of Americans.
Weiterlesen »
Arizona AG sues Biden to stop ‘illegal’ student loan handoutPresident Biden's student loan relief plan is estimated to cost at least $500 billion.
Weiterlesen »
Process for student loan forgiveness program starts next monthPresident Joe Biden is offering to forgive up to $10,000 in student loan debt for those making less than $125,000 a year and as much as $20,000 for eligible Pell Grant recipients.
Weiterlesen »