Romancing the loan

Our latest news on student debt, forgiveness and more [  Advertiser disclosure]( [View in browser  ]( [Bankrate®]( In partnership with [Bankrate®]( If you have some form of student debt on your shoulders, you're probably waiting for the day you'll pay it off – or have it relieved. Check out this week's edition of the Bankrate Brief for the latest on the debt crisis, when repayments are starting, where we stand on relief and how you can manage your debt -- both before and after you take it on. The $1.76 trillion debt question Student debt is growing, but borrowers still have hope [alt goes here]( Paying for college has never been easy. Today's graduates, however, are facing an uphill battle, as college tuition, as well as housing, food and other costs continue to eke upward with inflation. The student debt crisis is growing and looming. Here's [the impact]( that American borrowers are facing. The big numbers: • Over 42 million American borrowers hold $1.76 trillion in debt, making it the [second-largest type]( of debt Americans hold – right behind mortgages. • Student debt has grown by over $800 million since 2001, [exploding]( by 84 percent in the interval between 2001 and 2022. Over 92 percent of that debt is in federal loans. • The average undergraduate borrower has $37,787 in student loan debt, which can take anywhere from [10 to 30 years]( to pay off. • The average [estimated budget]( for undergraduates for the 2022-23 school year was $19,230 for two-year in-state students, $27,940 for four-year in-state students, and $45,240 for four-year out-of-state students in public colleges. Private colleges, of course, are pricier, racking up $57,570 for four-year students. The big impact: Student loans are taking their toll [physically and financially](. The age group with the most student borrowers is the 25 to 34 bracket, meaning that many financial milestones for this cohort – such as buying a house, getting a car or getting married -- are getting [put on hold](. Student loans are also fuelling a mental health crisis, leading to [anxiety, stress and depression]( for many borrowers and leading 10 percent to regret taking out the loans they did. Where do we go from here? While the cost of education continues to rise, and many borrowers are waiting with bated breath to see if Biden's relief plan will make it through the courts, there's still hope. Student grants and scholarships can make education more affordable for new borrowers, and current borrowers can refinance and consolidate their loans to make their monthly payments more manageable – and total repayment more possible. [Read on to learn more](. Mark’s take “Generally, if your total student loan debt at graduation (including any undergraduate debt) is less than your annual income, you should be able to repay your student loans in 10 years or less.” [Mark Kantrowitz, Student loan expert]( How your student debt affects you mentally Is paying down my principal self care? [alt goes here]( It might seem like a no-brainer that having thousands of dollars in debt can affect your mental health – but the impact might be deeper than you think. Inflation, questions around debt forgiveness and an uncertain financial landscape are all creating a snowball of stress for borrowers. Learn more about the impact and how you can [manage your mental health]( around loans. Quick bite: If you're losing sleep over your loans, you're in good company. Over half – 54 percent – of Americans have experienced mental health issues due to student debt. Here's how it might be [impacting you](. [Read article]( [alt goes here]( Quiz: Which of the following is true about Black borrowers and student debt? A.   Black women graduate with more debt than the overall average for men and women. B.   48 percent of Black borrowers owe about 6 percent more than they borrowed four years after graduating. C.   More Black borrowers put off major financial decisions due to student debt than white borrowers. D.   Black borrowers with a four-year degree are five times more likely to default on their loans payments than white borrowers. E.   All of the above. Check out the answer at the end of this week’s edition! What rising interest rates mean for student loans New borrowers, listen closely [alt goes here]( Jerome Powell? Who's he? Even if you haven't been watching the latest news on the Federal Reserve, rising national interest rates can mean taking out loans will become pricer – and those with adjustable-rate loans might see their monthly payments increase. Here's [what you need to know](. Quick bite: Student loan rates are rising – do you know what your monthly payment will be? Check out our student loan calculator and see how much you can [expect to pay](. [Read article]( Got loans? Refinancing your student loans can help make your payments more manageable. Learn the [how]( [why]( and [when]( of refinancing, and see if it's right for you. Just graduated high school? Here are [10 must-know tips]( for managing your finances. If you're struggling to qualify for your student loans, you might need a co-signer. Here's [everything you need to know](. Did you know? Your student loans can help you net a good credit score, even if you have no credit history. Here's how [you can get started](. [alt goes here]( The student loan pause is ending. Here's what you should do. Besides panicking, of course [alt goes here]( While Biden's federal student debt relief program is still hanging in the courts, the repayment date is fast approaching for borrowers. Whether you expect relief to come or not, it's crucial to get your finances in order before you start repayments. Here are the steps [you need to take right now]( – and what you can do if you can't pay. Quick bite: Mark your calendars – federal loan payments are set to restart 60 days after June 30th, or 60 days after the Supreme Court issues a decision, whichever comes first. Here's [how you can prepare](. [Read article]( Quiz answer: E. All of the above. Student debt can become a vicious cycle for Black borrowers due to inequality in wages, job opportunities and more, with the impact on Black women being heaviest of all. Learn what's fueling the issue and [what you can do about it](. Getty Image illustrations are used for editorial purposes in this newsletter. Below is credit to contributors: • Catherine Lane/Getty Images • JGI/Jamie Grill/Getty Images • Damir Khabirov/Getty Images • Phil Ashley/Getty Images [fb]( [insta]( [in]( [tw]( [yt]( [tiktok]( © 2023 Bankrate, LLC. 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