Latest Posts
Home > Ask The Get Out of Debt Experts > My Student Loan Balance Goes Up Even When I Pay. – Basil

My Student Loan Balance Goes Up Even When I Pay. – Basil

“Dear Steve,

Basically ever since i graduated i was never able to find a job with my degree because either my experience wasn’t enough, or because the school wasn’t even known!

I graduated in 2008 and about a few months ago we found out that my school was on academic probation the whole time and i didn’t know this, it had received bad reviews and bad press and have shrunk in size and locations. But overall I know my loans wont change do to that.

I’m still working in the same job i had before college and i get paid decent at 48k before taxes. my budget is tight as i have to care for my family, i have been making on time standard payments of $900/Month for 4-5 years and not a dollar was shaved off from my balance, NOT ONE DOLLAR!

From every payment they take half for interest, and then every other month they add accrued interest of 1200-2000 dollars, its insane. I will never be able to pay this off, when i call them they say “well your suppose to pay more then the standard payment”, yea i get that if i want to clear my loans away fast but making standard payments should drop my loan, now my situation is a little tighter and have been forced to defer some loans and make little payments… what are my options here Steve?

I’m sorry for the long post, its just frustrating and depressing !

Thank You

Basil”

Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here

The Answer

Hi Basil,

It sounds as if you have private student loan debt. If I’m wrong and you have federal student loan debt then read this.

There are a number of student loan issues going on here. It sounds as if you are on some deferred payment plan that is the most you can afford. And that payment is not enough to even begin to lower your balance, not to mention stopping it from growing.

My Student Loan Balance Goes Up Even When I Pay.   BasilJust because a creditor let’s you make a certain minimum payment does not mean that is best for you. It’s typically best for them because it grows what you owe and results in more money eventually owed to the lender.

It’s like those credit card payment holidays. You know, where they tell you’ve you’ve been such a good customer that you can skip the next payment, yet they tack on all the interest that builds during that time.

The first place for help is to talk to your private student loan servicer. Only they can tell you what solutions they may offer to assist you. If they don’t offer any good options then we need to consider other solutions.

Typically options like less than minimum payments, payment holidays, and deferment or forbearance where interest builds, are not good solutions. They only dig a deeper hole that is tougher to get out of.

The most important fact you mentioned is your school was in some sort of trouble at the time you attended. If they were not fully accredited at the time then your private student loans could be fully discharged in bankruptcy. Read this article for details on why and how this can happen.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

My Student Loan Balance Goes Up Even When I Pay.   Basil
Get Out of Debt Guy – Twitter, G+, Facebook

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

My Student Loan Balance Goes Up Even When I Pay. - Basil by

Share This and Spread the Word

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.