The interest all together doesn’t stop accruing but I think the parent commenter was trying to say that the interest will no longer accrue for the portion you’ve paid off. (The same as any other loan) So, if you continue to make your payments, you’re not getting extra screwed because of these shenanigans. No more than you’ve already been screwed at least.
Or is there something unique about this that is preventing people from making payments?
Most of these loans are interest paying first. Which means the principle (which the interest is being calculated from) doesn’t go down. No other major loan is this fucked.
You get a car loan or mortgage, it’s set up so that you pay it off in X number years.
Good luck finding a student loan that you could do that with, especially when 75+% of your income goes to rent.
The interest all together doesn’t stop accruing but I think the parent commenter was trying to say that the interest will no longer accrue for the portion you’ve paid off. (The same as any other loan) So, if you continue to make your payments, you’re not getting extra screwed because of these shenanigans. No more than you’ve already been screwed at least.
Or is there something unique about this that is preventing people from making payments?
Most of these loans are interest paying first. Which means the principle (which the interest is being calculated from) doesn’t go down. No other major loan is this fucked.
You get a car loan or mortgage, it’s set up so that you pay it off in X number years.
Good luck finding a student loan that you could do that with, especially when 75+% of your income goes to rent.