A good friend of our family living in Tyler, Texas lost her husband 3 years ago. She has 3 daughters none of which has ever married. They are all three very attractive young women. One was a Dallas Cowboy cheerleader. None of the three finished college and have never landed decent jobs with acceptable income. Being a Cowboy cheerleader was a “decent job”, but the income was minimal. They have run up credit card debt and their credit scores are low. You would think they would be trying to get married off, but they are partying and living a lot like college freshman.
The mother does not know what to do with them. She is living off a pension and social security and her fixed income makes it hard to help out her daughters when they are in between jobs. The girls did not finish college, but are in a lot of debt for their student loans. They got in at 3.4% I think so I am not sure if the recent doubling to 6.8% will hurt them. They may be grandfathered at 3.4%. Mother did not share that with us.
All three of her daughters have considered trying to consolidate all their loans into one loan and one monthly payment, but from what they said there is a cost or refinance fee and they are trying to figure out if it is worth it. I believe the loan rates are competitive and there is a break even point if you consider the refi charge.
Life is tough. These three women used to be Daddy’s little girls, but now they are finding out the world they live in can be brutal and cruel. I don’t know why the government chose to double the interest rates on student loans, but the change has really shaken up the reality of all those students who were used to cheap interest rates.