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I don’t even know why this is legal. I remember last year trying to prevent what this woman did so I asked Nelnet the amortization schedule. They didn’t even know what I was talking about. I don’t think they have one because they let you pay an amount that is so low that interest will keep accruing and increasing. I just refinanced and finally I have the ammo schedule so I know that in 15 years I’ll be done if I pay a fixed amount. You basically need to be a lawyer and an accountant to figure this crap out.
Pro
Before I went to business school, 9 years after college, I had been steadily paying $80k in student loans- $1k minimum each month. I paid about $84k and I still had about the same $80k left. I saw no end in sight. My credit score was amazing but I couldn’t afford anything and was living paycheck to paycheck.
I took the leap to do business school and tripled my loans; only bc I saw a clear ROI, getting into an M7 school. I’ve been paying $3-4k in loans since school ended and will be done this year after 16 years enslaved to my loans.
It’s bonkers.
Something is wrong with this picture. My wifes payments were $353/month on 30k and change for a 10 year repayment plan. We have it sitting at 10k exactly now until Biden leaves office and then we'll pay it off just incase forgiveness gets passed so we arent left holding an empty bag.
I borrowed $30k. I have paid $20k. I still owe $30k.
Why are the interest rates so high?
My highest student loan rate is 5.5% and I think even that is a lot.
Could this be the difference between federal loans and private loans?