How are people paying their school loans for 5-10 years and still able to actual owe more than their principle loan amount?

Question

I see this from time to time on social media about people saying they graduated college a long time ago with X-amount of school loans, and they’ve been paying it but then still owe more then the original loan amount. How is this even possible? Don’t all loans calculate the monthly bill for interests and enough principle for it to not increase?

In: 2

Answer 1

I think the biggest answer is that while you do not have to start paying back the loans until you start making money after college, it’s accruing interest from day 1 of the loan.