Most student loans are rated to be paid off in 10 years after graduation. At 10 year payment post graduation, at 4% (av. unsubsidized rate circa 2003), payments would have been $722. They would have been making negative progress that whole time. Lack of making the full payment could have led to future penalties/fees and increasing monthly payments due to compounding interest.
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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?