Netflix, Hulu and other streaming services are set to begin raising their interest rates on borrowers, according to a new report from the consumer advocacy group Consumer Watchdog.
The rate increases come after the Federal Reserve announced it is considering raising interest rates to spur consumer spending, with a potential boost for mortgage rates and a boost to the price of stock.
The report said consumers are expected to spend $1,500 less on a home over the next two years as interest rates rise, which would be the biggest annual drop since the Great Recession ended in mid-2009.
It also found that a $400,000 student loan payment would reduce disposable income by $50,000 in 2025.
The group said the median student loan loan borrower, who earns between $42,000 and $53,000, is likely to save $10,000 a year by 2026, but is likely going to pay $3,500 more in interest than a similar borrower would have.
The average interest rate increase is projected to be about $6.50 per year for new borrowers and $7.50 for existing borrowers.
Student loan interest rates rose on Thursday after the Fed announced it was considering raising rates, with an expected boost for housing costs and a bump for the stock market.
The Federal Reserve said in a statement Thursday that it has increased its $1.5 trillion mortgage rate target to 4.5 percent.
It also increased its 3.25 percent benchmark rate to a record high.
The Fed also announced that it is looking to increase its benchmark rate on bonds, which could boost stock prices and possibly trigger a surge in the price or sale of the bonds.
Consumer Watchdog’s report comes as several senators have introduced bills to reform student loan programs, including the College Student Loan for America, which calls for more transparency and transparency requirements for student loan borrowers.