Two big things to expect in 2019

Two big things to expect in 2019 revolving around student loans industry. Interest rates on these loans are determined by the federal government every year on July 1st. These rates are fixed rates but aren’t immune to refinancing option to combine loans and simply the repayment process. Another aspect to understand around debt is variable rates vs fixed rates. 2018 was an interesting year with the Fed raising rates 4 times. We have been in a low-interest rate environment since the housing crisis in 2008 and moving forward into 2019 higher rates are possible. If the risk of fluctuating interest rates worries you fixed-rate student loans are the way to go.

The second big change moving forward in 2019 is the landscape revolving around lenders. Trump and Secretary DeVos are looking to open up the federal student loan market to the private sector. This will make the loan origination market more competitive and help students, in the long run, they believe as the federal government has been generating tremendous profit by having no competition for years. This truly could be game-changing and really help lower interest rates. It is an exciting time in this space and lots of changes are possible moving into 2019.

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