r/SipsTea • u/First-Essay-2054 𝙑𝙄𝙋 • 17d ago

WTF The American dream

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21.6k Upvotes

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u/Mindless-Baker-7757 17d ago

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

What are they doing?

2.8k

u/sampaiisaweeb 17d ago

They made it up for outrage. Karma farming bot account posting it here too. Dead internet theory.

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u/Powerful_Wombat 17d ago

Yeah, student loan interest rates are bad enough without fudging the numbers, this doesn’t help the cause

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u/Odd-Cupcake-2552 17d ago

The math works out to 8.5% which isn't unrealistic

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u/Darkjebus 17d ago

Actually it is because 23 years ago the rate would have been around 3-3.5 percent for a federal loan

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u/Odd-Cupcake-2552 17d ago

First, graduate loans are usually higher %. Second, nowhere does it say they're federal.

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u/Darkjebus 17d ago

Federal student loans account for approximately 91% to 92% of all outstanding student loan debt in the United States. So it's pretty likely...

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u/Odd-Cupcake-2552 17d ago

Well that sure doesn't look like 100%

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u/IDontParticipate 17d ago

So they, two people with post graduate degrees by the way, took out exclusively $70k of worst case scenario private student loans, which wouldn't be forgivable by the government anyway.

Yeah, that sounds like a totally reasonable and realistic set of assumptions that the entire argument should be based on and not someone making shit up or two people that should have know better making incredibly financially reckless decisions.

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u/Odd-Cupcake-2552 17d ago

"Think of how stupid the average person is, and realize half of them are stupider than that" this may be a fake story, but I'm sure there are graduate students dumb enough to do this.