Student Loan Providers are Evil

My student loans have been on a repayment plan (3 & 4 year plans). They've all been in the plan since before we moved in 2017... As in, I haven't talked to anyone about it since then... I started paying it all down in 2020...

Ok, fine so COVID halted payments, extended the timelines, eliminated the interest for a few years, dangled the idea that they'd be forgiven... Great, we put the money into a savings account during that timeframe. After COVID, I'm automatically put back into the payment plan at the beginning. In our case that was excellent because we had spent the savings on starting up our coffee shop, and I'll happily take the lowered payments for a while. Now, we're putting every penny into buying the building, so I'm still happy to be paying a lowered amount, and a little worried about getting enough saved up before the payment plan ends and I need to start paying big bucks to these loans... Happens to be the best thing for our particular situation (aside from elimination of the debt) so I don't question it.

As we're nearing the next phase of our lives, I'm paying more attention to these student loans, planning to attack them again in full force! I start noticing that the payment plan is still 6 months out on the one account (new servicing company) and not visible in the old one... in other words, I begin to notice that something is... off.

A couple days ago (before the due date), I showed my daughter my bill and told her about how they will bleed you dry because the payment plan is interest only! So if you keep applying for the hardship plans it's literally a never ending treadmill, as in, you'll not make any headway, and of you don't pay CONSISTENTLY then the interest will slowly grow your loan... instead of the payments shrinking it.

I notice at that time that the payment plan ends in JULY (payment goes up in August)... Today is payday, and I'm making financial plans for the rest of the year (which loans to attack first) when I see, that the payment plan now ends in AUGUST (payment goes up in September)... Wh-Wh-What!!! The interest only portion of my payment plan is being extended each month, by a month.

I have been tracking the loan amounts monthly since 2020, so I had discovered the interest-only thing back then (my principle kept increasing by small amounts in months that have 31 days). But the payment plans have been something of a black box since COVID. It's probably been incrementing like this the whole time and I just haven't noticed. It is literally a never ending treadmill and I can see why so many people are unable to get off. They WANT you to keep paying (just) the interest for the rest of your life.

I am going to be more intentional about chipping away at these loans until they are completely gone!