CBS News
With student loan payments resuming and inflation still high, many struggle to afford the basics
Racquelle Perry has always prioritized education — she’s got two master’s degrees and the bills to prove it.
Perry owes $307,000 in student loans, she told CBS News, one of the millions who must now contend with the restart of those loan repayments and stubbornly persistent inflation.
She said looking at the number she still owes makes her wonder, “How am I ever going to pay this back?”
“If I pay this five, six, seven hundred dollars this month, how am I going to afford to buy food for the family for the month, for the week?” the single mother who teaches financial literacy to high schoolers in Harrisburg, Pennsylvania, said.
Perry has avoided her payments recently, and she’s not alone.
According to the Education Department, about 40% of borrowers who owed a payment in October when payments resumed failed to make that payment by mid-November.
Borrowers won’t face late fees for a one-year grace period, but Betsy Mayotte, the president of the nonprofit The Institute of Student Loan Advisors, warned interest is still building.
“If the loan ends up defaulting, it’s going to be a big hit on your credit. Future debt that you need to take on — a mortgage, a credit card, a car loan — is likely going to have a much higher interest rate, and therefore cost you more,” she said.
While everyone’s situation is different, all federal loans offer an interest rate discount for those enrolled in autopay. For some, up to $2,500 in annual interest could be written off on tax returns.
The government also has several programs that can help eliminate or reduce loans, with options available through the online Loan Simulator tool.
“I would love to see every consumer with student loans getting in the habit of reevaluating their student loans strategy and checking in on things once a year,” Mayotte said.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
A teacher and student killed in a shooting earlier this week at a school in Madison, Wisconsin, were identified Wednesday by authorities.
The Dane County Medical Examiner’s Office said in a news release provided to CBS News that 42-year-old Erin West and 14-year-old Rubi Vergara were fatally shot Monday morning at Abundant Life Christian School.
Preliminary examinations determined the two died of “homicidal firearm related trauma.” Both were pronounced dead at the scene, the medical examiner said.
An online obituary on a local funeral site stated Vergara was a freshman who leaves behind her parents, one brother, and a large extended family. It described her as “an avid reader” who “loved art, singing and playing keyboard in the family worship band.”
West’s exact position with the school was unclear.
The medical examiner also confirmed that a preliminary autopsy found that the suspected shooter, 15-year-old Natalie Rupnow — a student at the same school — was pronounced dead at a local hospital Monday of “firearm related trauma.” Madison Chief of Police Shon F. Barnes had previously told reporters that Rupnow was pronounced dead while being transported to a hospital.
Police had also previously stated that she was believed to have died from a self-inflicted gunshot wound.
The shooting at the private Christian K-12 school was reported just before 11 a.m. Monday. In addition to the two people killed and the shooter, six others were wounded.
Police said the shooting occurred in a classroom where a study hall was taking place involving students from several grades.
A handgun was recovered after the shooting, Barnes said, but it was unclear where the gun came from or how many shots were fired. A law enforcement source said the weapon used in the shooting appears to have been a 9 mm pistol.
and
contributed to this report.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
