Congratulations, graduates, on your diploma. Now what about that $29,000 student loan debt?
More than 70 percent of graduates will carry student debt into the real world, according to the Institute for College Access and Success. And the average debt is just shy of $30,000.
But the news will get worse next week when interest rates on student loans are set to rise again.
Though federal student loan rates are fixed for the life of the loan, these rates reset for new borrowers every July 1, thanks to legislation that ties the rates to the performance of the financial markets.
The interest rate on federal Stafford loans will go from its current fixed rate of just under 4 percent to 4.66 percent for loans that are distributed between July 1 and June 30, 2015.
For graduate students, the rate on Stafford loans will rise from just over 5 percent to 6.21 percent.
Direct PLUS Loans for graduates and parents are still the most expensive, with rates rising to 7.21 percent.