Student loan debt is paid at variable rates; some spend decades paying for their education
More than half of WSU graduates leave college with a degree and some level of student loan debt, according to a Daily Evergreen. Article. SSome of those graduates spend years paying down debt.
Kristin Hersrud, manager of the Accounts Payable payment team, began paying off her student loans 22 years ago at about 5 percent interest. Despite this, he said he hopes to continue repaying the loans for another 20 years.
Hersrud’s loans are currently in default due to the COVID-19 CARES Act, which means that all of his payments were deferred and no interest accrued on them. The COVID-19 CARES Act ends on September 4, according to the Washington State Department of Employment Security. website.
While she’s still in the middle of paying off her loans, Hersrud said being employed simplifies payments.
“So maybe [I’ll finish paying] at the same time, I am ready to retire, ”she said. “I didn’t go to Harvard or anything. Not that he has big private education loans or something. “
Hersrud said that every time he loses his job, it becomes difficult to make certain payments. During a recession, people go back to school for a new education in the hope of finding a better paying job.
While some interest rates and payments increase over the years, he said his payments are fixed.
“My interest is set between 4 and 5 percent on the five loans I have, and then my payments stay the same over the years,” he said. WSU alumnus John Rackham began paying off his student loan debt in 2009 at 3 percent interest. He said he should be able to pay off the debt in full over the next five years.
Rackham said that when he was a student, he saw the school make loans for almost everything, including a laptop.
“That’s just $ 2,000 more that I have to pay back,” he said.
Rackham said the process of paying off his student loans has been up and down. He got a job right after graduating from pharmacy school and was able to make payments of $ 1,400 a month. He later got divorced and was unable to make the same payments.
“When you go from paying $ 1,400 to paying around $ 400 a month, it definitely takes a little longer,” Rackham said. “The director is not so cared for.”
He said that making payments is no longer a problem for him, but he understands that some circumstances in life could change a person’s situation at any time.
“Life happens sometimes,” Rackham said. “You may not be able to pay them off as quickly as you anticipate.”