Many have been paying thousands of dollars in interest alone, with their principal debt hardly affected despite monthly payments
In 2001, Karen Herrera of Minnesota took advice from a Sallie Mae representative to consolidate her student loan debt with her husband’s. They both worked in the public sector, but due to their type of loans, they did not qualify for public service forgiveness. Herrera lost her job in 2009 due to the economic recession, and though the couple filed for bankruptcy, their student loan debts remained.
Herrera and her husband have continued to make monthly payments throughout the pandemic, as their loans through the Federal Family Education Loan Program were not eligible for the pause on payments.