Interest Rates on Federal Student Loans to Rise Next School Year

Interest Rates on Federal Student Loans to Rise Next School Year

Although this number can be difficult to pin down, the data on the Department of Labor’s website can give you a rough idea of ​​what workers earn in different jobs. “The choice of your major also affects your future salary and the amount of debt you expect to pay off after you graduate,” said Michael Itzkowitz, founder and president of HEA Group, a consulting firm specializing in college entry and success concentrated.

Some majors are more likely to have higher salaries, Itzkowitz said. The group on Thursday released a table showing the average salaries of the most popular and highest-paying majors four years after graduation, based on April data from the Department of Education’s College Scorecard. Top salaries — $90,000 and up — are concentrated in majors like petroleum or computer engineering, computer science, and pharmacy, while salaries in fields like fine arts, studio art, dance, and theater are in the low-to-mid $30,000 range.

“Everyone has to consider the costs of participation in addition to their possible salary,” said Mr. Itzkowitz. “Can you recoup your costs within a reasonable period of time?”

Here are some questions and answers about student loans:

For state student loans, the generally dependent student cap is $5,500 for the first year, $6,500 for the second year, and $7,500 for the third and fourth years. The cumulative cap, which accounts for additional years if needed, is $31,000. (Credit limits are higher for independent undergraduate and graduate students.) For PLUS loans, the limit is as high as the institution’s tuition.

Private student loans are offered by banks and lenders other than the federal government, and their interest rates, which vary by lender, have also increased. The loans usually require a credit check, and only borrowers with excellent credit ratings receive the lowest advertised interest rates. Personal loans can also have variable interest rates, which means your monthly payment can increase over time as interest rates rise. Student loan advocates advise caution with personal loans, as they tend to be more expensive and lack the protections of federal loans, such as federal loans. B. Income-matched payment plans and the right to temporarily suspend payment in the event of setbacks such as job loss or illness. Additionally, federal borrowers who work in certain government and non-profit occupations may be eligible for debt relief after a period of time.