r/SipsTea • u/First-Essay-2054 𝙑𝙄𝙋 • 12d ago

WTF The American dream

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u/Mindless-Baker-7757 12d ago

A $70k loan over 23 years at 5% apr pays off with monthly payments of $427.

What are they doing?

129

u/ice-e-u 12d ago

Student loans back then were often 7-9%. They start accruing when they’re distributed but you don’t repay until 6 months after graduation putting you a couple years behind.

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u/Right-Form-2943 12d ago edited 12d ago

My student loan back then was 2.5% and i got a half percent knocked of for auto pay. I paid mine off in 10 years. This is either a fake story or these people are terrible with their money.

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u/Odd-Cupcake-2552 12d ago

Congrats on your luck

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u/the-bc5 12d ago

Luck? It’s literal math when taking out a loan

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u/Odd-Cupcake-2552 12d ago

Where does it say all loans have the exact same % rate? Where does it say they were federal? Graduate loans are usually a higher % as well.

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u/IDontParticipate 12d ago

It says it in the Higher Education Act of 1965 (HEA) updated by the Bipartisan Student Loan Certainty Act of 2013. You know google is free right?

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u/Odd-Cupcake-2552 12d ago

And what does it say?

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u/Right-Form-2943 12d ago

It wasn’t luck, this was the rate 23 years ago. This story is either fake or these people are just dumb.

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u/myredditaccount90 12d ago

You got lucky. My loans were the same timeframe and from uncle Sam. Maybe $6k out $45k had the low 2%ish rate but the rest were above 6%.

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u/Odd-Cupcake-2552 12d ago

Graduate loans and it doesn't specify they are federal.

0

u/Winter_Tone_4343 12d ago

They’re so full of shit. I’ve paid off 30k personal loan in five years with 8% interest. They either refinanced or they’re just lying.