THIS IS A TRAP.

THIS is what student loan lenders/servicers are doing now?? Omg, please please please understand: This is regarding private loans so I’m not sure it works the same as federal loans, but with federal loans at the end of a deferment or forbearance the interest capitalizes and becomes principle. (It actually happens about 30 days before your payment is due again.)

THIS IS WHY THEY LOVE TO DO DEFERMENT OR FORBEARANCE FOR ONLY A FEW MONTHS AT A TIME.

I understand this might be someone’s only option to keep their payments current, if this is you my suggestion is to pay the principal only as much as you can during the deferment or forbearance period.

Yes the interest will still capitalize but these are simple interest loans so interest accrues every single day based on the current principal balance. So if you’re paying that down you’re being charged a little less interest tomorrow which means less interest will capitalize overall.

If you’re paying the interest as you go, of course it won’t capitalize, but then you’re making payments and your balance isn’t going down.

Also, stop having babies. Women get punished for having babies, society wants you to produce new taxpayers and children for the church to molest, but then they fire you for it.

https://www.reddit.com/r/StudentLoans/comments/1le4r96/i_cannot_pay_my_private_student_loans_what_do_i_do/

#StudentLoans #deferment #forebearance #SimpleInterest #StopBreeding #reddit

Does anybody know why people think student loans are compounding interest loans when they’re actually simple interest loans??

Interest will compound when you come out of our forbearance or deferment, but otherwise these are simple interest loans yet I see people claim all over the place they are Compounding.

Or is this guy talking about some private student loan that makes up its own rules?

Federal student loans are simple interest loans, like a car payment or mortgage, unless that changed after 2012.

Petition · Make Student Loans Fair Again - United States · Change.org https://www.change.org/p/make-student-loans-fair-again

#StudentLoans #SimpleInterest