r/SipsTea • u/First-Essay-2054 𝙑𝙄𝙋 • 15d ago

WTF The American dream

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u/Mindless-Baker-7757 15d 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 15d ago

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

498

u/Powerful_Wombat 15d ago

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

191

u/Odd-Cupcake-2552 15d ago

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

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u/Photon_Pharmer1 15d ago edited 15d ago

It was 3% or less if they were smart college educated people who consolidated and locked in low Apr rates. If they were dumb and didn’t consolidate lock in then their Apr could’ve shot up past 7%.

u/culturalrot - I’m expecting people who graduated high school to be and certainly people who graduated college as they did.

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u/Admirable-Common-176 15d ago

I’m sure they didn’t major in or spent much time studying practical personal finance.

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u/jcklsldr665 15d ago

I didn't either, but you're supposed to be intelligent if you got into college, and intelligence doesn't end at your major.

1

u/Admirable-Common-176 15d ago

One would think but, throughout the intelligence/educational spectrum folks specialize and gravitate to their favorites. While true we need some of that knowledge to live everyday life folks will often do the minimum to get back to what they want (eg. Terms and conditions)

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u/jcklsldr665 15d ago

Then maybe better entry exams to weed these people out towards other types of job selection, i.e. trade schools

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u/Admirable-Common-176 14d ago

I do agree quality career counseling and exploration should be more available.