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How Inflation Affects Student Loan Borrowers?

1.Rising Rates on Variable Rate Loans While borrowers with existing federal student loans won't see a significant change in the interest rate of their loans, those with private student loans may not be so lucky. In fact, many private student loans come with variable rates that may and often do go up over time. 2.Less Disposable Income Means Problems Making Payments Inflation means that nearly everything you buy costs more and this inevitably leads to having less disposable income in your pocket.


1.Rising Rates on Variable Rate Loans

While borrowers with existing federal student loans won't see a significant change in the interest rate of their loans, those with private student loans may not be so lucky. In fact, many private student loans come with variable rates that may and often do go up over time.

2.Less Disposable Income Means Problems Making Payments

Inflation means that nearly everything you buy costs more and this inevitably leads to having less disposable income in your pocket.

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