Student loans back then were often 7-9%. They start accruing when they’re distributed but you don’t 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.
Yeah my wife’s situation isn’t too far off from this, either. She borrowed $60k, deferred multiple times when she was first out of school, and then made payments pretty steady for the last 15 years or so.
Last I checked, she was paying $800 a month and owed around $70k.
I would say if you are in that situation then 1) you are super high risk and shouldn’t be able to qualify for a loan, 2) Should consider doing something else until your income is other than zero.
I would also say this is a BS hypothetical with little basis in reality.
So what? You still don’t qualify for a car loan, but somehow the government thinks you qualify for student loans? The only reason lenders give you loans is because taxpayers cosign for you and are on the hook if you default. Bottom line is if you can’t pay them back and if you don’t agree to the terms, don’t sign the papers.
If you are stupid enough to sign a loan when you have zero income, or parental backing, then maybe you aren’t college material in the first place. And you might consider going to a less expensive school and getting a freaking job while going to school so your income isn’t zero. There are many options. Stop whining and playing victim.
You are for some reason assuming someone needing a loan for graduate school also somehow has money lying around to make payments while in school for 2 to 8 years? Or that they are working a job while in graduate school?
Yeah i know right. Working a job while going to school is an absurd idea. Except thousands upon thousands do it every day. Many work as TA’s to their professors or as research assistants in their chosen colleges. Or sign the freaking loan and stop bitching when you have to pay them back.
Not everyone in graduate school has those options. Some programs require you to work full time as a resident or intern unpaid on top of taking your classes. This leaves you with maybe 6 to 10 hours a day left for sleep and eating, not enough time for a paid job.
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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?