[Bill14564]

Originally Posted by Ponygirl

A better fix would be to reform the way the loan companies collect on the loans Since they were privatized the interest rates are over 9 percent and the way they calculate the payments are criminal. Navient was forced out for unjust practices. Why are we allowing these companies to make so much money off the people who are working hard to pay back the loans

I am still paying on a parents plus loan and have been paying for over 12 years My records show I paid it off 6 years ago When I print out the spreadsheet and calculate what I have paid it is well over the original loan. Some months the interest payment is 40% of the monthly payment and some months it is 80% and some months 100%. No rhyme or reason. I have asked many time for an audit and am not able to get one

Also the addition to the balance with something called capitalized interest which they can never explain

So sorry for the long note but a reform of how college loan debt is collected would be an important fix. Why allow companies to get rich which is not fair to the college borrows

BTW previous loans were federally secured at abt 3 % before privatized and todays loans have no comparison to those that many of us took out all those years ago

You should find an accountant to help you understand what is happening with the loan.

As with any loan, because of interest you will end up paying back more than you borrowed - that's just the way loans work. With most loans the monthly payment will be calculated to include all interest plus some principle. However, with student loans there are many schemes to stretch out the term of the loan to keep payments low or to defer payments entirely. Nothing comes for free (not much anyway) and these schemes result in you paying much more than was originally borrowed. You need to talk to an accountant who can help you understand how you came to be in the position you find yourself in and how to dig your way back out of it.