NEWS AFFAIRS 7 : WHERE EVERY STORY HAS IT'S AFFAIR!
Table of Contents
Why Student loan interest rates are all time high ?
Student loan interest rates are going up for the first time in 14 years. This means students will have to pay more money back on their loans. The government says it’s because the economy is not doing so well, so they need to raise the rates to make more money.
Different types of loans will have different rates. For example, if you’re in college, you might have to pay 5.5% interest. If you’re in graduate or professional school, you might have to pay 7.05%. And if your parents took out loans for you, they might have to pay 8.05%.
Treasury yields
This increase in rates is because of something called Treasury yields, which basically means how much money the government makes from selling bonds. Because the government wants to make more money, they’re making it harder for people to borrow money by raising these rates.
However, the government is also trying to help people pay back their loans more easily. They have programs where your monthly payments are based on how much money you make, so if you don’t make much, you won’t have to pay as much each month.
But it’s not just student loans that are getting more expensive. Other loans like mortgages, car loans, and credit cards are also becoming more costly because the government is trying to control how much money people are borrowing.
Read More :
AI Investment scope 2024 : Accel’s Optimism for Europe’s Tech Startups
AI 2024 Revolution Spurs Race for Best High Performance Memory Chip Solutions
2024 Dreaming The American Dream : The Powerful United States of America
Apple M4 Chip introduced in iPad Pro Models ! Is it the best of best ? Latest News
2024 Youtube ad Revenue | YouTube Jaw-Dropping Income ? How much YouTube really pays to its creators
