Chances of redditors understanding minimum loan payments and interest? Zero

My mom went through something similar. Student loans don't get treated the same way a normal loan would where the bank expects it paid off by a certain date and adjusts payments to get you there.

Yep, I've even seen loans where the minimum monthly payment doesn't cover all the interest, so you don't even get a chance to pay your principal unless you up your payment. People just need to be more educated about their finances.

“People just need to be more educated about their finances” is exactly how they want you to react. Blaming and shaming others in the work force instead of going at the people who created this sick cycle 😂😂

Putting the blame of a broken system on the user of the system, not the creator, takes a special type of brainwash.

That honestly should be criminalized.

When getting involved with a loan structure like that, the governing body giving out the loan should basically spell it out with a crayon saying, with this payment, you will pay us for 1000 years at a total of $2000000 dollars on your current $5000 loan.

It sometimes doesnt even cover interest. My minimum payment right now is like less than 1% of my total loan. Its actually probably closer to 0.1%

Anyone here know what "minimum" monthly payment means?

Lmao at everyone “you signed a contract, you knew what you were doing when you signed the loan”

For the vast majority of people this is flatout un true. Show me an 18 year old that understands interest, debt, rates, amortization, contracts or even how to fricking wash themselves properly .

Should we make it illegal to give loans to 18 year olds?

No, but a basic financing course should be mandatory in high school

It is in most.

[citation needed]

Compound interest is taught in algebra class. Looks like the gifted children of reddit forgot that

Explain to me how it is fair for those who took responsible and reasonable loans, sacrificed early, didn't have a 4 year full out party experience, and majored in things that are actually in demand, and now have to watch this cancel loans debacle?

I went to college without scholarships, couldn't afford to live on campus, worked 25-30 hours a week, and only took the minimum loans I had to.

This cancel bs seems want to reward the behavior of maxing loans and selling votes for handouts….. disgusting.

Oh? This is where you're butthurt? You did it the right way, and all these people are now getting a free hand out?

Here's how to digest the truth of it. Thank you for becoming an educated adult. We need those. Those other people? The ones being forgiven? They DID NOT KNOW this would ever happen for them. They were fully prepared they thought at the time, and offered high interest predatory loans that didn't exist 30 years ago.

People act like they're talking about the same loans as cars and houses. That is not what these are. They're designed to trap borrowers. They were introduced in the last decade or so, and people in good faith took them out because the gospel became ‘you must have a university education' and it's complete bullshit. We also needed trades people, and now we're seriously fricked because there aren't enough skilled tradespeople. There's a major crisis going on in aviation for example, there are almost no mechanics. A local place offered my son a full salary for a 3-year apprenticeship to become an aviation technician because the lack of those people are crippling people from flying from place to place.

So here's the truth. A portion of the population got reprieve from predatory lenders. This is highly unusual simply because we've always had a government that bails out the banks - not the borrowers. This should be celebrated. I'm sorry you were not in that pile. But across the board, we ALL rise when you have educated people who can spend that money on other economic foundation factors. Not just trapped paying endless interest for the rest of their lives. It means people can have families now, or afford medical plans. It means we're bringing people forward, and that's good for everyone. Local stores and economies, all the way up.

These are not the loans you think they are.

🤣🤣

They didn't know loans had to be paid back?