"CAP" Private & FED Student Loan Interest

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Dear Senator,

In 2018 student loan debt had eclipsed 1.5 trillion dollars. With roughly about 44 million borrowers, that sets the average student loan debt at about 38K per student. Society’s taught us all at a young age, that education was the key to success. We were told “get a good education and this will assure you get a well paying job after graduating from college.” This message is embedded in our minds early in life. Unfortunately, for many this could not be further from the truth.

I know this letter may come across your desk and potentially be overlooked, because I am not a constituent in your state. But within your state are many just like me (thousands maybe even millions). Many do not know what to do, so I would like to be their voice and beacon of hope.

I am a private student loan borrower (Sallie Mae/Navient). I (like many) could not afford to pay for college out of my own pocket. Thankfully, I was able to fund my 4 years of college with both Federal & Private loans (mostly private). While I am grateful for the college experience and degree I earned, it’s been overshadowed by the enormous never-ending growing balance post graduation. I originally borrowed 55,532.88 for my college education from Sallie Mae/Navient. I graduated in 2005. Year-to-date I’ve made payments totaling 59,509.13. My remaining balance is still 64,143.21. Seeing these figures side-by-side on my excel spreadsheets literally sickens my stomach. However, I am proactively working on a plan to pay it back.

The statistic shared earlier shows that student loan debt is a problem in this country we call the “land of opportunity.” For myself and many others, we feel the mounting pressures of the growing balance even after repayment has started. Defaults rates are well above normal and will continue to sore.

This is why I’m putting this petition together to call for reform to specifically “private student loans.” Upon graduation, the original principal in some cases have doubled, tripled even quadrupled because of the “daily compounding interest.”

I am calling for Government Representatives to step-in and set a “CAP limit” on the amount of interest Private loan providers can add onto original loan balances. Balances are growing on a daily basis. The payments most students are making is primarily going toward the interest that is still growing daily. How are borrowers suppose to ever make a dint in the principal balance? It’s virtually impossible. The interest rates are variable and set by the lender. Why do lenders need to collect 2, 3, or 4 times the amount borrowed?

Income based repayments (which is primarily for Fed Loans) isn’t a solution; it’s a Band-Aid. This only lowers the monthly payment while the interest is still increasing, eventually increasing your overall balance.

We need real reform. Reform that will truly help all student borrowers pay off their private student loans with a “reasonable” amount of interest. It feels as if private lenders purposely want to keep students in debt well into their elderly years. Which morally, simply is not the right thing to do. Education shouldn’t be a penalty. Private lenders are profiting 2, 3, and even 4 fold at an alarming rate from “interest only.” How many executives are receiving bonuses? Why do private lenders need so much interest it they are claiming to help struggling students pay for college?

I can not predict the future. I do not know what happens if this student loan bubble bursts like the housing market did some years back. But students are being left with the short end of the stick and mounting balances unless Government appointed officials create and pass real laws that will bring change to this predatory system “Private Loan Providers” have taken advantage of for so many years.

#CAPstudentloaninterest