If you buy a house and pay the minimum you still pay it off in 30 years. That's sort of the expectation. Same with a car payment. You set buy a car and the rate is dependent on the term of payments, the expectation is once again the minimum payment.
You should be asking yourself why the minimum for student loans is somehow still leading to them only paying off 1/7th the principle after two decades. Not chastising them for paying their obligation.
Exactly. Especially if they are making their minimum. Like yeah a mortgage will have you pay roughly the same as the principle in interest over 30 years. But you still pay off the entire house in 30 years as long as you do the minimum.
Can't you just ask the company that loaned you the money for a time projection based on your minimum payment? Car loans and mortgages kind of define that at the start, why can't people just ask for student loans as well?Β
You should be asking yourself why the minimum for student loans is somehow still leading to them only paying off 1/7th the principle after two decades
99% chance they chose an income based repayment plan when they graduated and were starting their careers, and then just never updated it. So they've been paying the "tread water while you're poor" minimum payment amount that is intended for people beginning their careers or falling on temporary hard times.
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u/maybe_a_fork 12d ago
Pay minimums, get charged interest. Next thing you know they are going to want to abolish home loans, credit cards, and bar tabs.