American college students borrowed $8,645 in student loans
After several years, they have repaid a total of $7,450
They still owe $8,750
You read that right, they have repaid more than they borrowed and owe more than they initially repaid
If calculated with an annual compound interest of 8%, the funds would take about 9 years to double. Many repayments are not of the principal but of the interest, and it's the interest on the interest!
This is a debt trap that many people can never escape from in their lifetime
Compound interest has never been a miracle for the poor, it is a miracle for the banks.