LogFAQs > #907173839

Things can go one of two ways in the future.

Either we may get an administration that erases all student debt and works towards free tuition.

Or eventually there will be stricter rules and penalties for not paying back your loans. They already can take quite a bit, as it's fed min wage, not local min wage that they can reduce you to. There are quite a few people who end up working under the table because of that (a $10 an hour under the table job pays more then a $15 one where you pay taxes and your wages are garnished for instance).

Real problem though is the fact that so many people have insanely high loans at this point due to not even covering the interest on them over many years. People with $80k in student debt originally have over $200k now, with monthly payments recommended over $2000 a month lol.

Current situation is not viable long term. Debt even if no more loans were given out, is increasing steadily instead of going down. Right now you can sign up for income based repayment plans and as long as you are making less then about 15-20k a year, pay nothing or almost nothing (depending on your marital status etc). You can do that indefinately and well, because many people go to college then find out they are going to be paid $30k as a teacher for the first 5 years before getting any kind of raise, they just do the income based repayment plan.

No big deal right? Just start paying it off later once you actually make enough to rent a one bedroom apartment.

Wrong, you gain interest all that time, and if you reconsolidate or a bunch of other options, your interest gets added into your principle, meaning you now pay interest on all of it. That is how someone can go from 80k in debt to 200k in debt. I have seen it happen.

System is crazy right now....great way to make money off people, but...many are just giving up because of that and never expect to pay off their loans.
---

"did you steal my f***in signature" Helly