Even when making payments on time, and paying as much as you can, runaway interest is still a real issue for some student loan borrowers. I understand Americans committed to these contracts and agreed to pay back the money. However, if your interest accrual per month is over $1,000, it is nearly impossible to catch up. I would suggest that each loan has a cap on how much interest the loan can accrue. This is way, the banks still make their money for loaning, and the people don’t have to keep chasing an impossible dream of someday being debt free. Most people have several seperate loans with the same student loan servicer. If their interest accrual gets capped at a set amount per each loan, they eventually will be able to get back down to their principal balance rather than always scraping the surface of the interest that accrued the previous month.
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This should be made law. It’s always the interest that hurts college students and families!
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