I accrue $62/day in interest alone on federal student loans. Student loans could be paid off if the interest structure was not insane!! It’s absolutely predatory. Most of us started getting these loans at 18 years old and we were approved so fast it would make your head spin. We acknowledge and take ownership to pay back what we owe, but relieve us from this interest so debt-free is an actual possibility! Most people quit paying altogether because they see no movement on their principle ever.
30 Likes
We should stop the federal government backing student loans (Fannie May). Student Loans should be limited to amounts needed to cover basic tuition and books only. Too many people get heavily in dept with student loans that they use to live on or buy cars, etc. I worked my way through college often working 2 part time jobs while raising a child. I finished with $15,000.00 in student loans and paid it all back myself. I never took out a loan for anything I did not need directly related to school. I worked to pay my and my sons living expenses myself. We need to get back to accountability. I do agree that those with current student loans should get some interest relief because of the predatory way things have developed with the government backing of them. But EVERYONE should pay back the principle of what they owe. We need to change the system to reduce this happening in future by no longer having the federal government back student loans and limiting student loans to strictly amounts needed to cover tuition and book costs not covered by other programs like scholarships and pel grants. They should also require student loans to be paid back with simple interest not compound interest and limit interest rates on student loans to no more than 5% regardless of what other interest rates are. Student loans should be given in the form of either vouchers for exact amount needed that go to the school or checks written to the school itself for the exact amount needed.
8 Likes
There should be a cap of % interest on student loans. There should be some benefit for the company that loaned the money not robbery though. If we have to borrow money then the lender should make something in interest but definitely not more than 2 or 3% but then companies won’t loan monies for college because it won’t be worth the effort. IT would be a catch 22.
3 Likes
Absolutely agree @Kassi205 !!
1 Like
Totally agree for private loan companies - no qualms on reasonable interest there. But the government loans… nah. They get enough of our money in a hundred other different ways.
If we are talking government. There is no constitutional right for the government to give loans of any kind because it’s all taxpayer money. When was loans by the government put on a ballot? Its also unconstitutional for the government to tax income. Imagine if our grandparents and parents had not been taxed on income how much better our financial situations would have been. There would be no need for loans to do college.
6 Likes
Also take out the big business of colleges charging and increasing tuition and being a part of the problem with students going into debt.
3 Likes
So the money the government uses to subsidize student loans is also money they borrow or that could go to other things . Both have costs. The borrower or beneficiary of what the loan was used for should pay for the full cost of the education they receive.
People’s who made responsible financial decisions about education or decided due to cost to not get further education should not be left subsidizing the cost of folks who where less thoughtful 
about this.
3 Likes
Borrowing money always has a cost; it is not free, and you should not expect that it will ever be free. If your idea of zero interest were applied to all borrowed money, then no one will be able to borrow money, because those with extra money that they might be willing to lend will have no incentive to lend it. This is an ill-conceived idea born of a poor understanding of economics.
Remember, a decade or so ago the gubmint took over the educational loan industry, forcing private lenders completely out of the market. Once upon a time, educational debt was dischargeable in bankruptcy. Lenders were therefore incentivized to give close scrutiny to the educational program for which a loan was sought. Basket weaving, anything with the word “studies” in the major, lots of “literature” majors did not make the cut for private loans because the probability of default was high. Now, the gubmint makes all the loans. Need a loan for your Master’s degree in basket weaving or interpretive dance? Sure! But there’s a catch. If you can’t repay the loan because you can’t get a job with your interpretive dance or basket weaving Master’s degree, your loan is no longer dischargeable in bankruptcy. You are indebted to the gubmint for life. Maybe you’ll exercise better judgment in your next reincarnation (if you believe in that).
2 Likes
Here’s another similar topic. Maybe they should be merged.
Also $62 a day? How much is your loan?
1 Like