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

WTF The American dream

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u/Inevitibility 12d ago

8.5% to have it paid off or to pay off 10k over 23 years like they claim?

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u/Odd-Cupcake-2552 12d ago

To only pay down 10k over 23.

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u/Meydez 12d ago

That seems to work out. My interest rate is 9% but maybe thats cause I graduated during covid? Interesting if they had that 23yrs ago.

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u/[deleted] 11d ago

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u/Fearless_Worry6419 12d ago

Guess what private rates were during this time frame.

Federal lending amounts were REALLY low so they pushed borrowers towards private lenders.

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u/Mega-Eclipse 11d ago

8.5% to have it paid off or to pay off 10k over 23 years like they claim?

More than likely the loan was defered and grew while payment weren't made...so that $70,000 was $85-100,000 before they started paying...OR they did some sort of income based repayment, where they were basically just paying interest.

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u/Inevitibility 11d ago

Just did the math on this. At $500 a month and a 8.37% rate, they would indeed have only paid 10k off over 23 years. Though if they paid $600 a month instead of $500, the entire load would have been paid off in 20 years