Loan Servicer: "Your monthly student loan payment is $520." You: "Great. I’ve paid $520 every single month for 7 years straight. $43,680 total." Loan Servicer: "Correct." You: "So my initial $38,000 principal is paid off, right?" Loan Servicer: "No, your balance is currently $41,500 due to accumulated interest and capitalization." You: "I paid almost $44,000 on a $38,000 loan and I owe MORE than when I started?" Loan Servicer: "You paid the interest required to keep your account current. The principal was never fully covered." You: "Can I declare bankruptcy like a failed corporation?" Loan Servicer: "No. Federal law makes student loans exceptionally difficult to discharge." You didn't take out an education loan. You signed a lifetime garnishment agreement designed to collect interest for years without making a meaningful dent in the balance.