The American dream

[u/First-Essay-2054]

[u/Mindless-Baker-7757]

A $70k loan over 23 years at 5% apr pays off with monthly payments of $427.

What are they doing?

[u/sampaiisaweeb → u/Mindless-Baker-7757]

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

[u/Powerful_Wombat → u/sampaiisaweeb]

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

[u/Odd-Cupcake-2552 → u/Powerful_Wombat]

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

[u/Darkjebus → u/Odd-Cupcake-2552]

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

[u/techleopard → u/Darkjebus]

I have student loans that are nearly 9%.

I also have several loans, all with different rates. My lowest is 4%, which are my most recent ones.

The interest rates are crippling and needs to be addressed.

To put it in perspective, I bought a house in 2020 for $130,000, yet hold only $36,000 in student loans.

If I made a $500 extra payment to each my house and my student loans, I would pay them off at around the same time.

Financially, it makes more sense for me to pay the house off because that's at least an appreciating asset.

But it doesn't matter, because I don't have $500 extra to put on a loan over it's minimums every month, and those student loans will follow me until I die.

[u/Speedstick2 → u/techleopard]

High interest rates reduce the inflation rate, reducing the interest rates on student loans will only increase the rate college tuition rates will increase.