HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Paying student debt month...

Mon Feb 10, 2020, 02:00 PM

Paying student debt monthly but debt keeps growing.join the club

https://www.forbes.com/sites/advisor/2020/02/09/you-pay-monthly-but-your-student-debt-keeps-growing-join-the-crowd/

Article says this is true for 49% of borrowers. They are making no progress on the student loans

A new report from Moody’s Investor Services highlights an alarming statistic: 49% of student loan borrowers whose repayment obligations started in 2010-12 have made no progress towards reducing the balances that they started repayment with. None.

Even worse, many recent grads are seeing their balances grow.

Kaitlyn Blount Crow is one of them. As a young adult with dreams of telling other people’s stories, Crow graduated from the University of Alabama in 2015 with a degree in communications—one that left her with $31,000 in student loans.

But her prospects for a full time journalism job were grim. The industry had gone through a continuing plague of layoffs. Jobs paying the average salary of $41,000 for news reporters were difficult to obtain and Crow struggled to find any full-time employment in her field at all.


She started taking low paid freelance jobs—and waiting tables just to squeak by. No way she could swing the monthly payment that would be due on her student loans in a standard 10-year repayment program.

Rather than default on loan payments, Crow enrolled in a federal income-driven repayment plan—one that tied her monthly payment to her earnings. At first, her income was so low her monthly repayment was $0. Nevertheless, she would pay some money towards the loans whenever she could, hoping this effort would eventually help her pay off her student debt.

Later, she got a full time job and her monthly payment rose to its current $150, which still isn’t enough to cover the interest on her loans. She has continued to make extra payments when she can, yet Crow’s original student loan balance of $31,000 has bubbled up to $34,448.

“Watching your balance go up despite making regular, on-time payments is pretty disheartening,” she says, adding, “I honestly wondered why I had bothered with the extra payments.”


5 replies, 384 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 5 replies Author Time Post
Reply Paying student debt monthly but debt keeps growing.join the club (Original post)
Demovictory9 Monday OP
LonePirate Monday #1
notinkansas Monday #2
Demovictory9 Monday #5
Drahthaardogs Monday #3
MineralMan Monday #4

Response to Demovictory9 (Original post)

Mon Feb 10, 2020, 02:21 PM

1. But so many DUers say that the student loan debt problem does not need to be addressed.

Who am I supposed to believe here?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Demovictory9 (Original post)

Mon Feb 10, 2020, 02:30 PM

2. It is a national disgrace

The fact that a generation of American youth are forced into a lifetime of debt for the crime of trying to get an education is beyond shameful.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to notinkansas (Reply #2)

Mon Feb 10, 2020, 07:20 PM

5. agreed. something must be done

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Demovictory9 (Original post)

Mon Feb 10, 2020, 02:34 PM

3. The whole student loan issue is jacked.

High interest rates, predatory lending, and repayment scams. Why are banks loaning $100,000 to a student who is getting a teaching degree? No accountability on the bankers, yet again.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Demovictory9 (Original post)

Mon Feb 10, 2020, 02:35 PM

4. Jobs for journalists are, indeed, few and far between.

However, the ability to write clearly and concisely is becoming a rare commodity. There are other careers out there for people who can communicate well in writing. It is still a salable skill.

I hope that person begins to look for such jobs and expands her opportunities. There was never any guarantee that a degree in journalism or communication would lead to a high-paying job. In fact, it has always been a poorly-paying profession, especially in entry-level positions.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread