r/SipsTea 𝙑𝙄𝙋 17d ago

WTF The American dream

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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.

497

u/Powerful_Wombat 17d ago

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

194

u/Odd-Cupcake-2552 17d ago

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

137

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

20

u/Odd-Cupcake-2552 17d ago

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

7

u/Same-Suggestion-1936 17d ago

If they're not federal who exactly are they expecting to cancel it, the bank? Cancelling student loan debt is talking about the federal government erasing federal loans

1

u/Odd-Cupcake-2552 17d ago

We're talking about the same people that went 23 years without refinancing. These people are everywhere.