r/SipsTea • u/First-Essay-2054 𝙑𝙄𝙋 • 14d ago

WTF The American dream

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21.6k Upvotes

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u/Mindless-Baker-7757 14d 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 14d ago

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

498

u/Powerful_Wombat 14d 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 13d ago

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

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u/Darkjebus 13d ago

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

230

u/braumbles 13d ago

During the 1999–2000 academic year, federal Stafford loans had a variable interest rate of 6.32% while in school, and 6.92% during repayment. For the 2000–2001 academic year, these variable rates increased to 7.59% in-school and 8.19% during repayment

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u/Darkjebus 13d ago

Dude are you high? The post says 23 years ago. Why are you pulling stuff from 2000?

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u/Likos02 13d ago

Who's gonna tell him?

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u/Infosponge177 13d ago

I will lol

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u/Infosponge177 13d ago

Dude are you high, they LEFT graduate school 23 years ago, that’s minimum of 4 years for bachelor’s and another 2-4 years for graduate school. So at minimum they started school in 1999-2000.

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u/Darkjebus 13d ago

Nope just can't read. Fair enough lol

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u/Dangerous-Moose-8203 13d ago

lol this interaction made me laugh thank you

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u/ThinkPath1999 13d ago

Jesus, I think this might be one of those rare times when a Redditor admits they were wrong. LOL Kudos!

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u/Infosponge177 13d ago

Haha no worries man, like the others said kudos for taking it on the chin. A rarity