It’s May, which means a whole new round of graduates are turning their tassels and entering the workforce. This also means that their first student loan payments are around the corner, and 2024’s numbers are overwhelming, to say the least. This year, Forbes reports $1.75 trillion in total private and federal student loan debt and an average of $28,950 owed per borrower in the US.
While President Joe Biden has rolled out several rounds of student loan forgiveness, an aid package for borrowers of all circumstances has yet to be approved. Meanwhile, college degrees are failing to hold the same weight as they used to, and salaries remain nearly stagnant while the cost of living rises.
Basically, it’s hard out here, and student loans aren’t helping. In fact, bloated interest rates are arguably making things worse.
According to Nerd Wallet, 2024–2025 student borrowers are looking down the barrel at a 6.53% federal student loan interest rate, making the cost of seeking an education higher than it has been in 16 years.
