.... I've been out of college for 15 years. Deferred my loans the first couple years because I was a single mom, just trying to keep food on the table. Over the past 5 years, I've paid enough in loan payments to completely pay for my original balance ($30k) but because interest accrued at 8% and was then compounded AND capitalized, that $30k I've paid back has made no dent in my 'balance due'.
I presently owe $80k. I pay $520 a month but was told my account accrues $485/mo in interest, so I'm actually only paying $35/mo in principal. 
It is NEVER going to end.
Even if I make the 20 years' payments to reach forgiveness (by which time I will have paid nearly $150k total), whatever amount is forgiven is considered taxable income.
It is paralyzing people's ability to do ANYTHING long-term and, as a result, removing money from the economy.
Edit history
Recommendations
0 members have recommended this reply (displayed in chronological order):
= new reply since forum marked as read