Payback time is tough for recent college grads

The economy is reeling from thousands of jobs lost this month. One of the groups most affected by this troubling trend is recent college graduates. With a limited number of jobs available, college grads are beginning to pay less per month in student loan payments, or deferring their loans entirely.

The economy is reeling from thousands of jobs lost this month. One of the groups most affected by this troubling trend is recent college graduates. With a limited number of jobs available, college grads are beginning to pay less per month in student loan payments, or deferring their loans entirely.

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The U.S. Department of Education says more students put off paying back their loans during the past year, but only by a small percentage.

Barmak Nassirian of the American Association of Collegiate Registrars and Admissions Officers says loans falling into default are a relatively small problem right now.

Nassirian: We certainly are nowhere near anything like a major crisis point in terms of big picture default rate as of now, but obviously, we all have an interest in avoiding defaults to the maximum extent practical, and finding better options.

Adding to students’ financial burden, the National Center for Public Policy and Higher Education reports that college tuition in Pennsylvania has been outpacing inflation.