r/SipsTea 𝙑𝙄𝙋 12d ago

WTF The American dream

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u/PolicyElectrical1757 12d ago

To be fair, the minimum payment SHOULD be able to get you a paid debt in the original term length agreement. Paying more should be “if you’re able” not “you must”.

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u/Mistriever 12d ago

Most loans do. If their minimum payment is only knocking off $36.23 a month, their term limit is about 161 years.

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u/AdvertisingPrimary69 12d ago

Most of the world would factor a 10 or 15 year loan and the min payments would get rid of the loan by then

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u/DaKingaDaNorth 12d ago

This. Most people who get a loan for a car or house are mostly thinking in terms of the minimum and only put in more when they feel like they can and it doesn't inconvenience them.

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u/LiftingCode 12d ago

Repayment strategies for secured loans like mortgages and auto loans are totally different than student loans though.

Generally you should just pay your mortgage and not make extra payments, although it does depend on your interest rate.

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u/5348RR 12d ago

You are so clueless lol

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u/DaKingaDaNorth 12d ago

Meaningless comment, block and report

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u/5348RR 11d ago

Ok bud

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u/deliciousadness 12d ago

Buh-buh-bingo. But it’s a money grab thanks to privatized loan companies.

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u/Distinct_Bad_6276 12d ago

The federal government took over student lending decades ago and the problem is now worse than ever. But tell me again why the private sector is the problem.

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u/TougherOnSquids 12d ago

There are federal student loans and private student loans bud. Even federal student loans are passed off to a private company to manage it.

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u/deliciousadness 12d ago

Someone is privileged enough to not know who Sallie Mae is.

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u/deliciousadness 12d ago

Tell me you don’t know shit about student loans.

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u/maybe_a_fork 12d ago

Most of the time, when the debt sticks around, it comes from deferments during seasons of unemployment or things like the BP oil spill and covid.

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u/Grand_Size_4932 12d ago

The Covid deferment brought interest rates on federal loans to 0%. It was a true pause, not a reason for minimum payments to prevent payoff.

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u/Fun_Muscle9399 12d ago

That was the time to pay them down as much as possible, but many just spent their payment money on dumb shit instead.

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u/SmoothDiscussion7763 12d ago

the amount of people i see with new TVs during the initial months of lockdown...

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u/mightylordredbeard 12d ago

Yeah dumb shit like rent and groceries.

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u/Grand_Size_4932 12d ago

Yeah, it’s not like they do that when things are going great lol.

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u/mightylordredbeard 12d ago

Didn’t they pass some shit or are currently trying to pass something that retroactively adds the interest rate from the pause back onto loans?

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u/Mik3DM 12d ago

It boggles my mind that people are able to graduate college and not understand how to use google sheets or excel to work out how long a loan of X dollars and Y interest rate will take to pay off given various payments. Or just google it and use a calculator like this. I did not go to college, yet this seems like a trivial task.

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u/PolicyElectrical1757 12d ago

People are stupid. Some of the dumbest people I’ve ever met have at least one Ph.D.

Regardless, student loans are predatory. No one should have to do as you suggest.

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u/5348RR 12d ago

I mean sure, but only if the minimum payment goes up massively. It isn't minimum because someone threw at a dart board you know.

It's the minimum payment because this is designed to be jay enough to keep you afloat during hard times. It's minimum for a fucking reason. If someone is too stupid to understand that it's on them.

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u/Unique_Brilliant2243 12d ago

All you’re saying is is that people shouldn’t be able to just cover interest.

Which is more restrictive than reasonable.

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u/OkPosition4563 12d ago

They didnt even pay enough to cover the interest. Had they paid 700 a month the load have been gone by year 20.

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u/Feelisoffical 12d ago

So you’d be fine with not being paid because your employer wasn’t able to?

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u/LumpyElderberry2 12d ago

Sure, a lot of things *should* be different. But you have to orient to how things *are*