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'Murdered by the student-loan industry': 2 borrowers describe the crushing interest that keeps them from paying off their debt

'Murdered by the student-loan industry': 2 borrowers describe the crushing interest that keeps them from paying off their debt

In this May 17, 2018, file photo, new graduates line up before the start of the Bergen Community College commencement at MetLife Stadium in East Rutherford, N.J.
AP Photo/Seth Wenig, File




High interest rates on student loans are keeping borrowers from paying off their initial debt loads.




Insider spoke to two borrowers who are dealing with "crippling" student debt, largely due to interest.




They both paid off nearly their full original debt amounts, but still owe thousands of dollars more.




See more stories on Insider's business page.


Alexandria Mavin heard from her high-school teachers that there was a path to the American Dream. If she went to college, graduated, and got an office job, she would get there. She graduated with $117,000 in student debt as a down payment for that dream.Now 32 years old and a property manager, she's paid back $70,000 of it, but she still owes $98,000 from her undergraduate education, and she says she "absolutely" regrets seeking an education."I've paid back almost all of my loans, but I still owe the full amount," Mavin told Insider. "It's a never-ending cycle."Mavin is talking about interest. It's why many borrowers have trouble staying on top of payments or eliminating their debt. The $1.7 trillion student debt crisis is largely due to interest that grows each year, so even borrowers who consistently repay their debt face high interest rates that keep their debt equal to what they initially borrowed - or higher.
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