Predatory loan practices, rate hikes, agreements where you can’t pay extra on the principal, can’t just straight pay off.
Like, I was lucky, I didn’t get screwed over too hard. But I was in school before it got really bad. So, my low fixed rate federal loans were sold to a private company after I graduated, and they raised the rates considerably. Not only that, but paying extra on the principal raised your interest rate. I got out of that by just paying interest until I had saved up enough money to pay in full. These days you would pay in full plus interest over the original life of the loan.
Friend of mine, her student loan’s interest rate is 18%. It was much lower when she took out the loan, but now it’s so much she can’t pay it off. Current plan is to pay interest for the rest of her life.
Predatory loan practices, rate hikes, agreements where you can’t pay extra on the principal, can’t just straight pay off.
Like, I was lucky, I didn’t get screwed over too hard. But I was in school before it got really bad. So, my low fixed rate federal loans were sold to a private company after I graduated, and they raised the rates considerably. Not only that, but paying extra on the principal raised your interest rate. I got out of that by just paying interest until I had saved up enough money to pay in full. These days you would pay in full plus interest over the original life of the loan.
Friend of mine, her student loan’s interest rate is 18%. It was much lower when she took out the loan, but now it’s so much she can’t pay it off. Current plan is to pay interest for the rest of her life.
This shit should be illegal.