I saw a post saying that two people left school 23 years ago with a combined debt of 70k. They paid 500 USD monthly for 23 years and still owe 60k.
I’m thoroughly confused. obligatory not from America.
In: Mathematics
Student loans are unsecured debt, so unless your loans are direct federal loans which have very low interest rates, interest rates on student loans are often pretty high. And if your payment plan is such that your minimum monthly payments are lower than the interest accumulating on the debt, then you can make payments on the debt for years and not make any progress paying it off. This is why people should, as best they can, avoid using private student loans and attend in-state public universities. The only reason you should ever attend a private university or an out-of-state public institution is if you have enough financial aid that it’s financially comparable to in-state public.
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