I recently bit the bullet and asked the company that services my larger loan account just how much interest it was accruing a month. I’d looked all over the monthly statement, but couldn’t find the interest amount.
I was horrified to find it’s racking up over $300 in interest a month! This is more than my income based payment, which itself is more than I can afford to pay. My friends have been making up the difference. I’m not sure how long they will be able and willing to do that…
Anyway, this loan was originally about $29,000. It’s now nearly $48,000. This is in spite of my paying out thousands of dollars, mostly in interest. Their plan for me is that I will keep paying until I’m well into my 80’s, and pay them over $80,000! Assuming I live that long. Nobody should be trapped like this for the rest of their life.
I read about one person who had paid off more than they had originally borrowed, and still owed many thousands of dollars. People are suffering under the current draconian laws. This is a system long overdue for reform. There has to be some realistic relief for people who can’t afford to pay!