Home > 2013 > Personal Finance > This Week in Credit News: Student Loan Woes

This Week in Credit News: Student Loan Woes

Advertiser Disclosure Comments 0 Comments

This Week in Credit News
The biggest credit news this week is all about student loan interest rates and debt as thousands of Americans graduate college and face the reality of their student loan payments.

How to Pay Student Loans You Can’t Afford

Once the six-month grace period that most student loan borrowers have expires, they’re faced with a choice of how to start paying back the debt they’ve accrued. For many, their starting salaries make it difficult for them to afford their student loan payments. Luckily for federal student loan borrowers, there are some programs that can help ease the burden.

Gerri Detweiler, our Director of Consumer Education, walks through the four main programs — deferment, forbearance, income-based repayment and income-contingent repayment — and what the qualification requirements are for all of them.

@GerriDetweiler @CreditExperts

Student Loan Interest Rate Is Set to Double: How You Can Prepare

With the battle over student loan interest rates still being waged in Washington, D.C., it’s no wonder that students are trying to prepare for the worst-case scenario — a doubling of the interest rate on Stafford subsidizes loans.

DailyFinance’s major tip for dealing with the rate change is to focus on the things you can control — the amount of debt you accrue while in school. Try to find cheaper housing options and cut food costs and other expenses to make your total balance when you exit school even just a tiny bit smaller.

@Daily_Finance

Millennials’ Student Loan Debt Up 76% in Just 5 Years

When it comes to the stark reality of just how much millennials are being impacted by student loans, the numbers from FICO’s Banking Analytics Blog paint a pretty astounding picture.

The amount of student loan debt this age group took on ballooned to $11,444, up from $6,490 just five years earlier, representing an increase of 76.3 percent. Meanwhile, all other kinds of balances — including credit cards, mortgages and car loans – dipped appreciably. For instance, auto financing experienced the smallest drop, falling just 14.9 percent to $4,226, while credit card debt dropped by slightly less than $1,000 to just $2,087. Mortgage balances also dropped 38.1 percent to $14,100 (though this was likely due to the lack of financial freedom many younger people experienced during this time).

@CreditExperts

Image: iStockphoto

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.