Student loan forgiveness is top of mind for most borrowers.
Despite a slight slowdown in July, prices continued to climb, leavinginflation close to record highs.
And if you have student loans, there’s another reason to be worried.
Here’s everything you better know about how inflation impacts your student loan debt.
“Inflation dictates that a dollar 10 years ago is worth more than a dollar today.
However, average wage increases arenotkeeping up with inflation.
For those with fixed-rate private loans, the interest rate of your existing student debt won’t go up.
If you have adjustable-rate loans, your interest rates could definitely rise – and may have already.
As inflation rates go up, interest rates usually follow.
Variable-rate private loans holders could see even higher interest rates in the future.
Private student loan rates have also increased.
Will inflation make loan repayment more difficult after the federal payment pause ends?
For many, repaying student loan debt in a time of high inflation is a real concern.
You should only refinance if you receive better payment terms or a lower rate.
Otherwise it generally won’t be worth the hassle and could cost you more in interest.
Consider a side hustle
Apart-time gigoutside of your primary job may help supplement your income as inflation skyrockets.
Currently, 31% of American adults have a side hustle,according to a 2022 Bankrate survey.
