Now tell me how someone who has never been hired to work for more than $14/hr that has a student loan from 2000 capitalizing at 8.25% can afford anything.

My Student Loan in 2000 was roughly $33,000. The Fed set it at 8.25%, which made my monthly payments $404.75.

I grossed $4,795 in 2000. Like I could pay $404.75/mo. I grossed $18,642 in 2001. $15,818 in 2002. $15,931 in 2003. $20,328 in 2004. $20,280 in 2005 and $22,880 in 2006. I didn’t break 150% of “Federal Poverty Level” until 2007. So for the first seven years after graduation my only options were Deferment & Forbearance.

Oh Look! IBR (Income Based Repayment) was started in 2007! I made $27,480 in 2007 (167.54% FPL) … my 25 year IBR payment was around $150 IIRC. Let’s call it $200. SO I get to cut my gross monthly earnings from $2290 to $2090. OK. And let’s see where that leads us…

Ah… at the end of the 25 years, I get to have my now $204,635.16 “loan” forgiven… which means, using my 2018 AGI and 2019 tax tables, I get a $46,076 Tax bill from the IRS… AFTER paying $60,000 ($200*300 months)

Wow. And given that my average annual income over the last 18 years has been LESS than $24K, what are the odds I could amortize “up” to a flat schedule?

Well, that would be $451.62/mo. So, I’d get to live on $1,548.38 gross/mo. AND I would have the pleasure of paying $112,453 total over 20 years. But at least I avoided “loan forgiveness” and the tax man, right? No! Going all 25 years at a mere $200/mo only costs $106,076‬ – a full $6,377 less! WHOOPEE!

This system was DESIGNED to crush people who couldn’t find professional work immediately, especially at higher interest rates, and keep them from ever getting ahead – all to increase the “asset value” of the “student loan debt”.

And it works smashingly well.

Oh, & FWIW… If I get a Wage Garnishment, (25% of discretionary income) it will only cost me around $100/mo until I die in 30 years give or take. That’s only $36,000 – or roughly equal what my original principal was. Gotta love math.