College is expensive. Parents work multiple jobs, pressure their children to be top of their class in order to win merit scholarships, all in the hope that college will mostly be paid in full. Inevitably, many students and parents have to take out student loans in order to fill the gaps left by financial aid.
In the case of one Twitter user, Michelle Miller, her mother agreed to pay off half of Michelle’s student loans to ease the burden on the new grad. After graduating, the girl owed about $30,000, and split between the two of them meant they would each have to pay back $15,000.
Michelle lamented on Twitter about how her mother insisted on repaying her agreed share of the student loans despite the daughter offering to take over the payments. When Michelle’s mother informed her that the original $15,000 had turned into $40,000 after interest, Michelle decided to save some money in preparation for the payments. However, her mother refused to allow it. Miller’s mother had to pay $400 a month on student loans, but that would cut into her pension, leaving her below the poverty line. For his mother, it was worth keeping up her end of the bargain. Unfortunately, her mother fell unexpectedly ill and died before she could retire or repay the loans. Going through her mother’s papers after her death, Michelle was shocked.
The amount of the loan had doubled. Michelle’s mother hid that the interest rate on the loans brought the total to $80,000 which she could never afford to repay. But this story is not unique. Many borrowers go into debt thinking the benefits of a degree will outweigh the burden of student debt, but the cost of an education continues to skyrocket and the interest rate on loans makes repayment nearly impossible. . When you go to school and take out loans, you expect to be able to afford monthly payments and hope to repay them in a timely manner, eventually freeing up income, but that’s not always the case. Many people find themselves in a situation similar to that of Michelle’s mother. They withdraw a dollar amount that is repayable, only to look and see that they have paid off the original balance, but still owe more than they originally agreed to borrow.
man wearing white top using macbook
Photo by Tim Gouw on Unsplash
If stories like Michelle’s are the norm, why aren’t we doing more to regulate student loan companies? Presidential candidates like to talk about student loan forgiveness, and some have offered action plans, but that doesn’t solve the long-term problem of student loan practices. The truth is that children who three months ago had to ask permission to use the bathroom now need to understand the long-term implications of borrowing money from a company that doesn’t care that the person average can’t repay it. plus interest.
17- and 18-year-olds who dream of going to college and have dodgy loan practices are a perfect storm for an ongoing student loan crisis. Until we know how to better regulate loan companies in charge of student loans, the next generation will repeat the cycle. People shouldn’t have to choose between chasing their dreams and going into debt to the grave.
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