I have 15 total public loans from school, totaling just over $100k, and I’m currently on the PAYE plan with another 12 years to go. I was just able to pay off one of those loans, smallest to largest, and I plan to pay off more when I can, while staying on that plan until something changes.
However, the daily interest on these loans is mind-blowing. I’m getting hit with $13.56 in daily accruing interest. My current PAYE amount is $277.68 per month. I’m not even one cent towards the principal. I really hope the next administration at least caps interest on your loans to 3%-5%. So, on $100k, I would owe the principal plus $5k in interest and servicing fees. They are making enough money already to service these loans.
I know this is a pipe dream, and I’m not asking for forgiveness, but give everybody a fighting chance. Thanks for attending my TED talk.
Daily Accrual Interest Rates – SUCKS!!!
byu/KingSolomon1010 inStudentLoans
Posted by KingSolomon1010
1 Comment
damn that daily interest calculation is brutal when you see it like that. i had similar shock when i started tracking mine – was paying but balance kept going up somehow. the math on these federal loans is just designed to keep you trapped in payments, especially with income driven plans where you barely touch principal for years