Re:U.S. Stepping Up Enforcement on Delinquent Student Loans
by nickles on Sunday May 12, 2019 @09:05PM
(#19895693)
> Hypothetically, a member of the Class of 2019 with $50,000 in loans would owe about $550 per month over the next decade -- or $20 daily. (Assuming 6% annual interest and a 10-year term.)
This article misrepresents the nature of student debt in the United States. The average student graduates with 60% of the debt in Bloomberg's hypothetical scenario ($29,800) [0] with a fixed rate of 5.05% [1]. This leads to a monthly payment of ~$320 with a 10y term, 58% of Bloomberg's calculation. Student loan debt is absolutely a major problem, but it's important to rely on facts, not hypothetical scenarios.
This article misrepresents the nature of student debt in the United States. The average student graduates with 60% of the debt in Bloomberg's hypothetical scenario ($29,800) [0] with a fixed rate of 5.05% [1]. This leads to a monthly payment of ~$320 with a 10y term, 58% of Bloomberg's calculation. Student loan debt is absolutely a major problem, but it's important to rely on facts, not hypothetical scenarios.
[0] https://studentloanhero.com/student-loan-debt-statistics/
[1] https://studentaid.ed.gov/sa/types/loans/interest-rates