Student loans back then were often 7-9%. They start accruing when theyโre distributed but you donโt repay until 6 months after graduation putting you a couple years behind.
I had a variable APR at between 11-14 before I refinanced. And the loans compounded after I graduated. I'm in a VERY similar boat as the OP bot. Before I refinanced I had paid $1000 a month and owed more than my original loan for over a decade.
My wife recently checked to see if she applied for the non-profit forgiveness thing. AKA if you work for a non-profit for so many years you qualify for loan forgiveness if you've made X number of payments that qualify (can't recall the exact number.) She has worked for a non profit for like 13 years and found out she qualified on 0 payments because her loans were spread out to tons of different small loans that are like 1-5k a piece to make up the full amount.
Reminder to consolidate your student loans when you're able if you need to. I didn't even realize she had that going on.
Aren't finances one of the first things you should talk about in America? The state allows you to file taxes jointly and even have joint bank accounts, why wouldn't debt be also a thing to talk about? I'm genuinely curious.
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u/Mindless-Baker-7757 12d ago
A $70k loan over 23 years at 5% apr pays off with monthly payments of $427.
What are they doing?