I believe people should pay back their debts. If you take out student loans, you should pay them back. But one of the reasons that people have trouble paying these loans back is that they can’t get ahead. A payment they can afford sometimes barely pays the interest on the loan. We should reduce the interest rates to 2% or less so that people can make progress on getting those loans paid off eventually instead of their payments barely making a dent in the principle. We want people to be educated, but we don’t need lenders making ridiculous profits from the debt.
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Could honestly not agree more! on both Federal AND Private loans. There should be absolutely no reason that my loan rates are at 9.84+%. After taking out around $120K for 7 years of school - I WANT to pay them back as I know I owe them, but by the time I pay them back, I’ll have paid back over $300K+. Its exhausting. Since my federal loan repayments started, my payment rate is supposed to be $1,300 a month- who can afford that? It’s literally more than my mortgage.
Yes, Tina. Your post raises an important issue. It’s not just the interest rate, monthly payments also have to be affordable. Which means something like the SAVE income-based repayment plan.
What should happen instead is the government gets out of the student loan business.