You pay student loans on time and still owe more than you originally borrowed

A TikToker went viral this week after claiming that despite making monthly payments on his student loan, he still owes more than what he originally borrowed.

The first video posted to TikTok by user Bradley (@baddie.brad) showcases his predicament, and two follow-up videos further illustrate the situation. Bradley’s first TikTok about his situation has over 1.2 million views.


And that at 7% interest

♬ O-Ton – you belong to me now heheheheh😩😩

The first video shows the TikToker posing while text overlaid on the video reads, “Never miss a student loan payment in 7 years”.

After a few seconds, there’s a quick cut to Bradley, who collapsed on his bed.

“Guilt more than at the beginning,” it says in the text.

In the first follow-up video, Bradley offers more details about his situation.

“And that’s why I’m never going to shut up about my student loan debt because I want to educate people and stop anybody from doing the stupid shit I did,” he begins TikTok, which responds to a comment is questioning him introductory video.

The creator says he graduated from college in 2013 and has since invested around $60,000 on his loans.

“But because the interest rates are so high, even though I’ve paid off over $60,000 of my debt, I still owe more than when I started,” Bradley continues.

He states that he has a $114,000 loan with an interest rate of 7% on which he pays $900 a month. “But because the interest rates are so high and the loan amount is so high, every time it’s time to make another payment, that $900 is essentially repaid from the interest, and it’s not going anywhere,” he says.

In a later video, he reveals that he had a total of $130,000 in student loan debt from a college degree he graduated in 2013. He claims that after paying around $60,000 over the past nine years, he currently owes a total of $147,000 — $17,000 more than the original amount he borrowed.

@baddie.brad reply to @vivaitalia4life ♬ Original sound – Bradley

In comments, some users chided other commenters who criticized Bradley for apparently not understanding the terms of his student loan debt.

“The comments failed the vibe check. Some of you forget that we sign up for loans when we are kids…literally 17 and 18 years old,” one user wrote. “The whole ‘just pay more a month’ thing, forget that some people can’t??? I went to the same school as him, it’s not his fault at all, they are such a scam when it comes to finances.

“Instead of blaming him for taking out a loan, why don’t you all blame the ridiculous student system? [loans?]’ the same user concluded.

Others simply sympathized with Bradley.

“School debt [has] was one of my biggest regrets in life,” shared one commenter.

“I’ll pay as little as possible and assume I’ll die with it,” offered another.

The latter is a common thought among those with student loan debt. In 2021, Investopedia reported that “nearly a third of all American students are now in debt to get through college, and the average debt from student loans hit a record high of $40,904 in 2021. Together they owe about $1.75 trillion.”

Additionally, “One in five millennials in debt expect to die without ever paying it back,” NBC reported in 2019.

Bradley’s problem stems from the fact that when he makes payments, the money appears to be going towards the interest and not the principal. This means that with each payment, the money only goes to the additional debt caused by interest, not to the basic amount. Because of this, he can expect to continue paying these indefinitely unless he is able to pay more to balance the principal amount.

His problem persists even after the federal government suspended interest rates on student loans and mandated monthly loan payments in March 2020 due to the COVID-19 pandemic. While interest rates on most student loans have been at 0% for over two years, the pause is set to end on August 31. While this measure has given many with immense student debt a chance to pay off the debt accumulated through interest, it’s unclear what kind of loans Bradley took out and whether or not the hiatus applied to them.

Commenters on TikTok offered their own solutions, such as: B. Making education free or low-cost (which is already being done by many nations around the world, according to top universities), lowering or abolishing interest rates, or, as suggested by some activists, eliminating student debt altogether.

No matter how the problem is solved, users on TikTok are fed up with the current system.

As one user wrote, “Our system is so broken!”

We reached out to Bradley via TikTok comment.

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*Initial publication: June 17, 2022 at 8:45 am CDT

https://www.dailydot.com/irl/student-loan-payments-interest-debt/ You pay student loans on time and still owe more than you originally borrowed

Jaclyn Diaz

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