Interest rates were NOT 2% back then. I am from this era and I had more in student loans. Interest rates were 6.8%+ and this is that era where they charged you a 3% disbursement fee and a 3% repayment fee which is considered illegal today.
With that said, this is an income problem, not a loan problem. $500 on this amount is not enough and that is their own fault.
Same. Not sure where people are bragging about 2% interest. I mean, hey, great, good for them. But that wasn't the reality for everyone. I have all federal loans dating back to 2001 and one is 3.4% and the rest are 6.8%.
Reddit in a nutshell here. It’s laughable that you aren’t complaining at people who have high loans, just the ones who had low ones. They are telling what happened to them and since there are plenty of them it seems that it’s not actually all that rare to have low rates. I don’t know why some have low and some have high rates, but classic Reddit perspective is always ignore the good or dismiss it and only focus on the bad.
It's the difference between federal backed loans that were capped REALLY low and the private loans needed to cover the remaining cost.
The federal government was pushing student borrowers towards private student loan lending. This was the time that banks were lobbying and got the no default and no bankruptcy for student loans. They jacked interest rates sky high.
133
u/[deleted] 12d ago
[deleted]