A viral TikTok video exposing high student loan interest rates has sparked nationwide outrage over lending practices where teenagers feel trapped in debt they cannot understand or escape.
Alyssa Jeacoma, 26, discovered that her student loans carry interest rates as high as 17%, which is higher than many credit cards, despite making $1,500 monthly payments for two years. Her tearful TikTok, filmed outside a TJ Maxx where she says she couldn’t afford to shop, has been viewed 6.9 million times and ignited conversations about financial literacy and student loan lending practices.
“That is literally all I knew,” she tells People. “I didn’t know any better to ask questions because how could I? I was 17 with no knowledge about finances”.
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Jeacoma says she now owes $90,000. More than her original debt. In her emotional TikTok, she called out the system’s absurdity: “I signed up for this when I was 17. This should not be legal”.
She jokingly begged billionaires like Jeff Bezos and Kourtney Kardashian for help, saying she’d signed up to be an egg donor because “I can’t afford” kids.
Jeacoma’s story isn’t unique. Comments poured in from viewers sharing similar horror stories.
“I'm half a million in student loan debt. I'll die with debt," said a TikTok user named arae762.
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Another user namedJessBecause replied, "I'm in my 40s and still paying my student loans from the 90s."
And MelZelRoe said, "I started with $150k in student loan debt and now I owe over $600k."
With 43 million Americans holding $1.6 trillion in student debt, according to government data, Jeacoma’s breakdown resonated with a generation that signed contracts as teenagers without understanding the consequences.
Private student loans often carry higher interest rates than federal loans and offer fewer protections. While federal undergraduate loans for 2024-2025 have fixed rates at 6.53%, private rates can reach nearly 18%, according to the U.S. Department of Education.
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Only 29 states currently require high school students to take personal finance courses, according to Next Gen Personal Finance, leaving millions of students unaware of just how much more they'll have to pay when they leave college.
The broader implications extend beyond individual borrowers to economic mobility and generational wealth building, as high-interest student debt prevents young adults from achieving traditional financial milestones.
Jeacoma’s viral moment perfectly captures a generation’s rage at being sold a dream that became a nightmare because no one taught them to ask the right question.
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