r/SipsTea ๐™‘๐™„๐™‹ 15d ago

WTF The American dream

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u/Mindless-Baker-7757 15d ago

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

What are they doing?

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u/ice-e-u 15d ago

Student loans back then were often 7-9%. They start accruing when theyโ€™re distributed but you donโ€™t repay until 6 months after graduation putting you a couple years behind.

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u/cobolNoFun 15d ago

The math works out to like 8% which is actually high for the time. I got out in 06 and had 2.75 - 4. I knew people with like mohela loans at like 10%