The Tuition Fees That Keep Coming – The Daily Evergreen
Student loan debt is repaid 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 these graduates spend years paying off their debt.
Kristin Hersrud, head of the Accounts Payable Payments team, started paying off her student loans 22 years ago at around 5% interest. Despite this, she said she plans to continue repaying the loans for another 20 years.
Hersrud’s loans are currently on hold due to the COVID-19 CARES Act, which means all of his payments have been deferred and no interest has accrued on them. The COVID-19 CARES law expires on September 4, according to the Washington State Department of Job Security website.
While still halfway through her loan repayment, Hersrud said being an employee makes payments easier.
“Then maybe [I’ll finish paying] at the same time, I am ready to retire, ”she said. “I didn’t go to Harvard or anything either. It’s not like I have big private student loans or anything like that.
Hersrud said that every time you lose a 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 better paying jobs.
While some interest rates and payments increase over the years, she said her payments are fixed.
“My interest is fixed between 4% and 5% on the five loans I have, and then my payments stay the same over the years,” she said. WSU alumnus John Rackham began paying off his student loan debt in 2009 at 3% interest. He said he should be able to repay the debt in full over the next five years.
Rackham said that as a student he saw the school grant loans for just about everything, even a laptop.
“It’s just $ 2,000 more that I have to pay back,” he said.
Rackham said its student loan repayment process has had its ups and downs. He got a job right after graduating from pharmacy and was able to make payments of $ 1,400 per month. He later divorced and was unable to make the same payments.
“When you go from $ 1,400 to around $ 400 a month, it definitely takes a little longer,” Rackham said. “We don’t take care of the principal as much. “
He said making payments is no longer a problem for him, but understands that certain life circumstances could potentially change a person’s situation at any time.
“Life does happen sometimes,” Rackham said. “You might not be able to pay them off as quickly as you think. “