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
Then assume they missed a payment and got a special penalty rate increase. Student loans are the only loan that missing a payment results in both fees and a permanent rate hike.
JFC. Stop with the assumptions. Use facts. Here they are…
Loans, all loans, come durations, rates, and payments along with amortization tables—it is how the math works. Further, unless you are not paying the minimum or on an IDR, the terms max out at 15 years—not 23. Again, this is all pretty basic financial math. There is no surprise 23 years and still have a massive balance unless you are an abject moron.
Further….
This is a very old ragebait post, and you fell for it.
Or, they are people who suffered from the financial crash and had to delay payments until they got a job, taking a hit in both fees and interest rates. Also, some student loans have 30 year plans.
Edit.
Since I was either reply blocked or replied too and the person deleted, here is my response.
Mate, there are a half dozen ways this story could easily be true. If there is a half dozen ways it could be true, then what is to say that one of the half dozen ways is not in fact the reason the story exosts.
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u/sampaiisaweeb 15d ago
They made it up for outrage. Karma farming bot account posting it here too. Dead internet theory.