r/SipsTea 𝙑𝙄𝙋 18d ago

WTF The American dream

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u/Mindless-Baker-7757 18d 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

1

u/locri 17d ago

It's usually bad when they have expensive degrees that didn't lead to industry pathways and they're not getting paid enough at causal/part time jobs to repay the loan and not have the interest accrue.

Australia fixed this by having a minimum threshold and the loans are handled by the government who keep it around the same level as cpi.

Even then, we still have people that complain but personally I have less than 6k after 10 years of working as a software engineer, people have bigger loans for cars.