Originally appearing in The New York Times on May 19, 2023, Ann Carrns interview Abby Shafroth in a look at how interest rates on new federal student loans are expected to exceed 5 percent for the first time in five years, adding to the pressure on families already struggling to pay for college.
While it’s wise to borrow only as much as you need, it’s important to make sure you don’t leave yourself short of funds, said Abby Shafroth, senior attorney at the National Consumer Law Center. “There are risks to under-borrowing, too,” she said. If you have to work more during the school year to cover costs, you may have less time for your studies. That could put you at risk of taking longer to graduate — which costs more — or even dropping out.
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