Man who paid $7,450 toward student loan stunned after being told he now owes $100 more than original amount
It’s a reality many borrowers in America are facing.
Student loans in the United States are often described as a trap, and one man just showed exactly why. Florida-based TikToker creator @cha_cha_p shared in a video how he has already paid $7,450 toward a loan with an original balance of $8,645. But because of an 8% interest rate, his balance today stands at $8,750 — that’s $100 more than what he started with. The video, posted earlier this month, resonated with a lot of viewers online.
@cha_cha_p Student loan interest is the worst thing ever! #studentloans #loandebt #studentloandebt #studentloanforgiveness ♬ original sound - cha_cha_p
In the clip, he breaks down the numbers step by step, saying, "This is a great example of why people hate student loans." He added, "So, the original loan that I took out, $8,600. Total payments I've made over the years, $7,400. The interest rate on this loan is pretty bad, it’s 8%. And I still owe $8,750," he said, showing the numbers on his statement. He added that despite years of paying, "I owe $100 more than the original amount. That’s why people hate student loans."
@cha_cha_p So many people trying to discuss math and financial literacy in my student video…. My bill has nothing to do with it. Student loans do not operate like other loans, they are designed and allow poor practices that keep people in debt by allowing low minimum payments, not providing amortization tables, compounding interest instead of simple interest, accruing capitalized interest during deferment and forbearance periods. The original video was around the need to reform student loans and why people complain. Everyone saying I chose to make certain low payments literally prove the point of the video, the borrowers shouldn’t be able to choose to pay microscopic payments that put them in the situation many are in, hope this helps #studentloan #studentloanssuck #loanreform #loserschallenge ♬ original sound - LIME LICKS 🍋🟩🫦
While $100 may not sound like much, the story struck a chord because the average borrower carries a balance more than four times higher. About 92% of all student loan debt is federal, issued by the U.S. Department of Education, while only 8% comes from private lenders. Recent Federal Reserve data shows that nearly two-thirds of federal borrowers — about 63.2% — have balances that are either stagnant or still growing, despite making payments. The scale of the problem is staggering. At the end of Q3 2025, around 42.3 million Americans had federal student loan debt, with an average balance of roughly $39,376 each, which adds up to about $1.67 trillion nationwide.
@cha_cha_p Replying to @user42069666 those who say we don’t get it, don’t understand how the issue is a snowball of interest based on deferment and forbearance and IDR plans #studentloans #loanforgiveness #financialliteracy #studentdebt ♬ original sound - cha_cha_p
Federal Reserve reports also found that in 2024, one in five federal borrowers was behind on payments, and more than 10% of balances were over 90 days delinquent. In addition, a report by the New York Fed’s Center for Microeconomic Data states that even though aggregate balances grew more slowly after 2020 (due to forbearance and interest waivers), existing forgiveness programs have wiped out nearly $190 billion in student loan balances for more than 5 million borrowers since 2021.
People who came across the story had plenty to say about just how familiar it sounded. @disney_di commented, "I borrowed 210k, can’t even tell you how long I’ve been paying mine (and you can imagine the minimum payment), and I currently owe 281k." @south_fork_greg added, "I can understand people wanting to make money off the interest. Because a service was provided. But I think it should be a flat 5% across the board for EVERYONE."
Some blamed the creator for not fully understanding how loan payments work. @mattramaekers3 wrote, "That’s how loans work. Make a bigger payment. I’m guessing you didn’t make payments during the forbearance that recently ended." @bcunning336 replied, "Just like a credit card. Make minimum payments and you get nowhere!!"
You can follow @cha_cha_p on TikTok for more daily life content.
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