'I Didn't Know Any Better to Ask Questions Because How Could I?' Graduate Breaks Down After Learning Student Loans Carry Credit-Card-Level Interest

Core Insights - A viral TikTok video has highlighted the issue of high student loan interest rates, leading to widespread outrage over lending practices that leave young borrowers feeling trapped in debt they do not fully understand [1][2] Group 1: Student Loan Debt - Alyssa Jeacoma's experience reveals that her student loans have interest rates as high as 17%, surpassing many credit card rates, despite her making $1,500 monthly payments for two years [2] - Jeacoma's current debt stands at $90,000, which is more than her original loan amount, illustrating the absurdity of the system as she signed up for loans at the age of 17 without understanding the implications [4] - The TikTok video has resonated with many, as evidenced by comments from users sharing their own significant student loan debts, with one user reporting $500,000 in debt and another stating they owe over $600,000 after starting with $150,000 [5][6] Group 2: Financial Literacy and Education - The current landscape shows that 43 million Americans hold a total of $1.6 trillion in student debt, indicating a widespread issue among those who signed contracts as teenagers without adequate financial education [6] - Private student loans typically have higher interest rates than federal loans, with federal undergraduate loans for 2024-2025 fixed at 6.53%, while private rates can reach nearly 18% [7] - Only 29 states require high school students to take personal finance courses, leaving many students unaware of the financial burdens they will face after college [8]