What Is Student Loan Deferment? A Deep Dive | Ascent

Student loan borrowers are facing rising interest rates and rising debt. The average interest rate on federal student loans is now 5.79%, up from 3.73% in 2021. This means that borrowers are paying more in interest each month, which can make it difficult to make their monthly payments.

In addition to rising interest rates, student loan debt is also rising. The total amount of student loan debt in the United States is now over $1.7 trillion. This is more than the total amount of credit card debt and auto loan debt combined.

The rising cost of student loans is a major burden for many borrowers. It can make it difficult to save for a down payment on a house, start a business, or pay for other expenses. It can also lead to financial stress and anxiety.

There are a number of things that borrowers can do to manage their student loan debt. They can consolidate their loans into a single loan with a lower interest rate. They can also enroll in income-driven repayment plans, which cap monthly payments at a percentage of their income. Borrowers can also explore loan forgiveness programs, which can help them to pay off their debt for free.

If you are struggling to repay your student loans, you should talk to a financial advisor. They can help you to create a plan to manage your debt and reach your financial goals.

Here are some of the key highlights about student loans in the United States:

  • The average interest rate on federal student loans is now 5.79%.
  • The total amount of student loan debt in the United States is now over $1.7 trillion.
  • Rising interest rates and rising debt are making it difficult for borrowers to repay their loans.
  • There are a number of things that borrowers can do to manage their student loan debt, such as consolidating their loans, enrolling in income-driven repayment plans, and exploring loan forgiveness programs.
  • If you are struggling to repay your student loans, you should talk to a financial advisor.