Debit is not just big digit, it is an ever deepening well. There are many people that have paid ten of thousand of dollars of their student loans and still saw the total due amount increase.
A loan with a very reasonable 5% overall interest if paid on time can have unbounded interest if paid late enough.
The student dept crisis is dominated by the latter kind of situations.
(still yes, it is zero compound interest + 50% fixed interest)
> There are many people that have paid ten of thousand of dollars of their student loans and still saw the total due amount increase.
The problem is a lack of financial literacy education on one side and a lack of career options for decent-paying jobs on the other side - a lot of office jobs these days require college degrees, and not everyone can work in the trades or join the military.
Personally, I believe that all of this is actually designed the way it is to make money for the banks handing out student loans.
A loan with a very reasonable 5% overall interest if paid on time can have unbounded interest if paid late enough.
The student dept crisis is dominated by the latter kind of situations.
(still yes, it is zero compound interest + 50% fixed interest)