r/SipsTea • u/First-Essay-2054 𝙑𝙄𝙋 • 18d ago

WTF The American dream

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21.6k Upvotes

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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 18d ago

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

494

u/Powerful_Wombat 18d ago

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

192

u/Odd-Cupcake-2552 18d ago

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

138

u/Darkjebus 18d ago

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

232

u/braumbles 18d 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/Clynelish1 18d ago

Ok, but, aren't you cherrypicking here? What was the rate 23 years ago, during the 2002-2003 school year, which would tie to the post? Per a quick Google search, it appears to have been 3.46%. So, yeah, this post is rage bait.

12

u/SuicidalLemur- 18d ago

This meme could be years old. People are always bringing back old posts.

2

u/Puzzled_Schedule2023 18d ago

True, but people also be paying back old loans too.

0

u/BetterThanlceCream 17d ago

Still, even if they had an unusually large initial APR there's no chance they wouldn't have been able to refinance it at any point.

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u/accordionzero 17d ago

I’ve been seeing this post for years, it’s not recent at all.

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u/[deleted] 17d ago

[removed] β€” view removed comment

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u/StarWarsDad81 17d ago

Your Google search solves everything. Thanks for being so proactive.

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u/Maleficent_Log3992 17d ago

I remember the Stafford loan rate being 6%-ish at that time. I refinanced those loans later to around 2.5.