Been paying my private student loan every month for 4+ years and it’s only 3% paid off

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It’s possible if your minimum payment is very close to the interest charges.


In short, the amount you’re paying barely covers the interest you’re accruing. Either refinance into a lower rate or start paying more than the minimum.


“Minimum” basically covers interest and a tiny principal amount


Did these loans accrue interest for a while (e.g., while you were in school) before you started making payments? For example, if you borrow $10k per year for four years at a 7% APR, you might think of your starting balance as being $40k, but if it accrued interest while you weren’t making payments until you graduated, it would rise to almost $48k before you started paying. If there were a 15 year term, after 4 years of minimum payments, the balance would be down to a little over $39k. In that scenario, you’ve paid off $9k (18%) of the highest balance, but if you think of the loan being for $40k, it only feels like you paid off less than 3%.