They are also may not be payday-loan high interest, but the interest is not necessarily low either.

Federal Plus loans were 8.5% until that program was shut down in 2010. [0][1]

Graduate Direct Subsidized and Subsidized Federal loan rates were 7.9% from 2006-2013 and have not dropped below 6.3% since. [1]

[0] https://en.wikipedia.org/wiki/Federal_Family_Education_Loan_... [1] https://www.finder.com/federal-student-loan-interest-rates-b...

> Federal Plus loans were 8.5% until that program was shut down in 2010.

Federal PLUS loans were never shut down, are still available [0]; what was shut down was non-Direct federal loans, including the non-Direct PLUS loans, which had a higher interest rate than Direct PLUS loans. [1]

[0] https://studentaid.gov/understand-aid/types/loans/plus

[1] scroll down to “Interest Rates on Federal PLUS loans” which shows historical direct and non-Direct (FFEL) rates: https://www.savingforcollege.com/article/historical-federal-...

Thank you for clarifying this.

Yeah, that's insane level of interest. My own student debt here in UK has the interest rate of 1.1%. I've just remortgaged our house at 1.29%, and our car is on 4% finance. All standard deals, nothing crazy. 7.9 or even 6.3% interest on the student loans that Americans get would be ruinous.

Dang those rates are crazy.

In the Netherlands, students loans are guven by the state. The interest rate is legally set to a mix of government bond interest (10 and 5 years). They included a clause that the interest never goes negative.

Student loans are going to be cancelled in 2022-2023 or significantly written down. Also the enterprising student is trying to pay off their loans now at 0%. It's too bad though that Navient restructured itself to mitigate these principal payments. I would say illegal too.

> Student loans are going to be cancelled in 2022-2023

Any evidence to support that?

Student loans have been pushed back consistently and routinely during the pandemic. The aim of kicking the payment down the road is that the economy needs the monthly payment as stimulus — and to boot we’re already writing multi trillions in stimulus to get us conditioned for the big release.

The only thing that thwarts this is sky high inflation, which is not foreseeable… this is because they have the biggest inflation enhancement on full bore (these literal monthly rent payments or better in student loan deference) and it’s only caused 7% cpi or whatever… that’s anemic

Thank you for your reply but it doesn't contain answer to my question.

This would increase the already high rate of inflation. So I don't think it's exactly likely. Plus there isn't the political will to give either party this win with voters.

Get a lot of credit cards, pay of loan that cannot bankrupt, then go bankrupt with all those credits

So obviously bad advice, but the reason is that to declare bankruptcy you have to convince a judge to do it. You might have trouble with that using this terrible plan.

I was offering debt advice to a young person recently in the UK.

They had gone to a UK debt management company that seeks to compound your debt by asking your creditors to accept an Individual Voluntary Agreement where you agree to pay back a certain amount per month for a fixed period and then get it written off. In practice it affects your credit rating like bankruptcy. They were advised by that company to do exactly what the person above said, max their credit cards first. Cash advance if possible.

Not the first time I have heard this