Sallie Mae

Sallie Mae, the major federal loan agency administers millions of loans to college students and their families. The 2006 Congress raised interest rates from 4.7% to 6.8%; students will still have to pay 6.8% even if rates drop below that. Parent loans were raised from 6.1% to 8.5%. The average student borrower now leaves college with a debt of $27,600 and some 66% of students graduate with debt (from www.alliancebernstein.com).